Banc Of California, Inc. · NYSE:BANC
Banc Of California — Q4 2025 Earnings Presentation
43 slides from Banc Of California's earnings presentation, Jan 22, 2026
Slide 1: Investor Presentation: Fourth Quarter and Full Year 2025 Results
Investor Presentation Fourth Quarter and Full Year 2025 Results
Slide 2: Forward-Looking Statements and Other Matters
Forward-Looking Statements and Other Matters This presentation includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements related to our expectations rega
Slide 3: Financial Highlights – 4Q25
Financial Highlights – 4Q25 Diluted EPS of $0.42 reflects positive operating leverage and strong core earnings drivers Achieved 15% loan and 11% NIB deposit annualized growth Change EPS Operating Leverage 4Q25 3Q25 4Q24 QoQ D YoY D Diluted EPS: $0.42,+11% QoQ PTPP(1): +10% QoQ, revenues +2%, Operati
Slide 4: Financial Highlights – FY25
Financial Highlights – FY25 Delivered strong growth in profitability in 2025 through disciplined execution of our strategy Our Actions Throughout 2025 FY2025 Results vs. FY2024 ❖ Delivered robust loan production with FY 2025 loan production and disbursements of $9.6B up Adj. Diluted EPS(1) Scaled 31
Slide 5: Financial Highlights: Significant growth in performance trends
Financial Highlights Significant growth in performance trends across the board PTPP(1) TBVPS(1) Diluted EPS(2) 36% $112.3mm 9% $17.51 62% $0.42 $102.0mm $16.99 $0.38 $0.31 $16.46 $87.0mm $0.26 $82.4mm $16.12 1Q25 2Q25 3Q25 4Q25 1Q25 2Q25 3Q25 4Q25 1Q25 2Q25 3Q25 4Q25 Net Interest Margin ROAA(2) ROAT
Slide 6: 4Q25 Income Statement
4Q25 Income Statement Strong PTPP(1) growth of 10% QoQ driven by higher noninterest income and expense discipline ($ in millions) 4Q25 3Q25 4Q24 Key Income Statement Metrics 4Q25 3Q25 4Q24 Total interest income $416.9 $432.5 $424.5 Diluted EPS $0.42 $0.38 $0.28 Total interest expense 165.6 179.1 189
Slide 7: Balance Sheet
Balance Sheet Balance sheet expansion driven by 15% loan and 11% NIB deposit annualized growth Average interest-earning assets modestly lower QoQ due to timing of robust loan growth late in 4Q ($ in millions) 4Q25 3Q25 4Q24 Key Balance Sheet Metrics 4Q25 3Q25 4Q24 Cash and cash equivalents $2,308 $2
Slide 8: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin NII relatively flat QoQ as lower deposit costs were offset by lower loan yields Robust loan growth weighted towards end of 4Q25 will provide benefit in 1Q26 and beyond Net Interest Income (NII) ($mm) and Net Interest Margin (NIM) (%) ❖ 12/31/25 spot NIM of
Slide 9: Noninterest Income
Noninterest Income Higher noninterest income largely driven by impact of lease residual gain ($ in millions) 4Q25 3Q25 4Q24 HIGHLIGHTS Leased Equipment Income $16.4 $10.3 $10.7 ❖Noninterest income of $41.6mm was up 21% QoQ Commissions and Fees 9.5 9.5 8.2 due primarily to: Service Charges on Deposit
Slide 10: Noninterest Expense
Noninterest Expense Noninterest expenses below target range due to disciplined expense management ($ in millions) 4Q25 3Q25 4Q24 Adjusted Noninterest Expense(1) / Average Assets Ratio Compensation $85.9 $88.9 $77.7 2.24% 2.16% 2.21% 2.18% Occupancy 14.7 15.4 15.7 2.12% IT and data processing 13.8 13
Slide 11: Deposits
Deposits Cost of deposits declined as NIB deposits grew 11% annualized ❖ NIB growth driven largely by new account balances; total NIB average ($ in millions) 4Q25 3Q25 4Q24 account balances grew 1% QoQ Noninterest-bearing Checking $7,823 $7,604 $7,720 ❖ Total cost of deposits declined 19 bps QoQ due
Slide 12: NIB Deposit Growth
NIB Deposit Growth Continued steady growth in new NIB business deposit relationships and balances(1) 4,845 4,031 3,569 2,929 2,390 $965.2 1,889 $746.8 1,288 $643.2 $537.8 $439.2 650 $382.6 $257.8 $107.3 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 Cumulative New NIB Business Deposits Accounts Cumulative
Slide 13: Loan Activity
Loan Activity Total loan production & disbursements of $2.7B, up 32% QoQ Robust loan growth weighted towards end of 4Q25 will provide benefit in 1Q26 and beyond Rate on Production(1) Total Loan Yield 7.20% 7.29% 7.00% 7.08% ❖ 4Q25 rate on new production of 6.83% declined 6.05% 6.83% 6.01% 5.90% 5.93
Slide 14: Loan Portfolio
Loan Portfolio Loans grew 15% annualized, primarily driven by higher yielding C&I loan categories Core loan portfolio has strong credit quality with appropriate reserve levels for low loan loss categories 4Q25 3Q25 Loan Segment Total % of Total Wtd. Avg. NPL % DQ % Coverage Coverage ($ in millions)
Slide 15: Asset Quality Ratios and Trends
Asset Quality Ratios and Trends Credit quality remains stable with NPLs down 9% QoQ Nonperforming Loans ($mm) Classified Loans ($mm) HIGHLIGHTS 0.88% 0.80% 3.17% 3.17% 3.20% ❖ Criticized loans and ratio declined, 1% and 24 0.69% 0.72% 0.64% 2.37% 2.71% bps respectively, driven by reduction in specia
Slide 16: Allowance for Credit Losses - Loans
Allowance for Credit Losses - Loans Maintained ACL coverage ratio at 1.12% 4Q25 ACL walk Economic 1.62% HIGHLIGHTS ($ in millions) coverage ratio(1) ❖ ACL increased $9.8mm reflecting: ❖ Minimal net charge-offs with net charge-off rate of 0.04% $270.7 ($2.7) 12.5 ❖ Provision of $12.5mm driven by incr
Slide 17: Adjusted Allowance for Credit Losses Ratios
Adjusted Allowance for Credit Losses Ratios Adjusted ACL ratio(1) is significantly higher when adjusting for lower loss loan categories 4Q25 Adjusted ACL Ratio(1) Composition of Lower Loss Loan Categories 1.60% Lower Loss Loan Categories 1.40% ($ in millions) 4Q25 3Q25 4Q24 1.28% 1.12% Residential $
Slide 18: Investment Securities Portfolio
Investment Securities Portfolio Portfolio yield increased 3 bps QoQ HIGHLIGHTS Security Type (1) Yield Duration (yrs) Unrealized Unrealized ($ in m illions) 4Q25 3Q25 Variance 4Q25 4Q25 Loss 4Q25 Loss 3Q25 ❖ Average securities yield increased 3 bps QoQ as purchase of AFS - Gov't & Agency $1,760 $1,6
Slide 19: Capital
Capital Continuing to grow TBVPS and maintain stable capital levels Regulatory Well- Excess of Well- 4Q25 3Q25 4Q24 Capitalized Capitalized Consolidated Company Total Risk-Based Ratio 16.31% 16.69% 17.05% 10.00% 6.31% Tier 1 Risk-Based Capital 12.34% 12.56% 12.97% 8.00% 4.34% CET1 ratio declined QoQ
Slide 20: Interest Rate Sensitivity
Interest Rate Sensitivity IRR position remains largely neutral for NII sensitivity; total earnings are liability sensitive 4Q25 IRR position – NII impact ($B) $20.5 Asset / liability gap of $15.4 ($5.2B) is largely neutral to NII when adjusting for deposit HIGHLIGHTS repricing betas ❖ Gap between sh
Slide 21: Loan Maturity and Repricing Summary
Loan Maturity and Repricing Summary 18% of fixed rate & hybrid loans will reprice / reset within one year at higher rates Over 50% or ~$3.2B of low yielding multifamily loans will reprice or mature in next 2.5 years ❖ Total fixed rate and hybrid loans that are Total Fixed Rate and Hybrid Loans – Mat
Slide 22: 2026 Strategic Priorities and Outlook
Outlook 2026 Strategic Priorities and Outlook 2026 Strategic Priorities FY2026 Guidance Key Factors ❖ Target mid single digit growth ❖ Driven by growth in commercial loans ❖ Scale franchise - continue momentum in growing Loans ❖ Dependent on economic conditions high-quality relationship-based deposi
Slide 23: Supplemental Information
Supplemental Information
Slide 24: FY25 Income Statement
FY25 Income Statement Diluted EPS(1) growth of 69% in FY25 primarily driven by decreased cost of funds and strong expense discipline ($ in millions) FY25 FY24 Key Income Statement Metrics FY25(1) FY24(1) Total interest income $1,676.7 $1,812.7 Diluted EPS $1.35 $0.80 Total interest expense 699.3 886
Slide 25: Share repurchases
Share repurchases Delivering shareholder value through share repurchases Share Repurchase Activity 1Q25 2Q25 3Q25 4Q25 Full Year 2025 Repurchase Amount $38,545,698 $111,454,299 $35,498,391 - $185,498,388 Price Per Share(1) $14.36 $12.65 $16.48 - $13.59 Number of Shares Repurchased 2,684,823 8,809,81
Slide 26: CRE Portfolio
CRE Portfolio High quality CRE portfolio has low weighted-average LTV and strong debt- service coverage ratio (DSCR) Total CRE is well diversified across multiple industries HIGHLIGHTS 4Q25 % of ❖ 74% of total CRE portfolio located in California Property Type 4Q25 % of Total Avg Loan WA ($ in millio
Slide 27: NDFI Lending Exposure
NDFI Lending Exposure Diversified NDFI exposure with history of minimal losses HIGHLIGHTS NDFI Lending Exposure ❖ Long history of strong asset quality 4Q25 % of 10-Year performance with almost no delinquencies, Loan Type 4Q25 Loan Total 4Q25 Historical NPLs or classified loans since 2020 ($ in milli
Slide 28: Customer Related Expense
Customer Related Expense ECR expenses declined QoQ due to impact of rate cuts Adjusted Noninterest Expense Detail(1) ($mm) Customer Related Expense ($mm) $31.7 $183.7 $185.9 $185.7 $4.2 $27.8 $182.4 $180.6 $26.6 $26.2 $4.1 $24.9 $4.7 $4.6 $26.6 $26.2 $4.1 ECR indexed to Fed Funds rate $27.8 $24.9 $3
Slide 29: Projects and Investments
Projects and Investments Total project and investment spend of $15mm, with $6mm expensed in 2025 Project investment composition Revenue enhancing projects Back office and support projects $1.4mm $6mm 23% $2.4mm $1.9mm 20% $3.6mm 39% 40% 39% 61% $9.3mm 37% $3.8mm 41% $2.2m Revenue Enhancing Back Offi
Slide 30: Liquidity
Liquidity Maintaining high levels of primary and secondary liquidity ❖Uninsured and uncollateralized deposits of $7.7B, which represents ~28% of total deposits ❖Total primary and secondary liquidity was 1.8x uninsured and uncollateralized deposits ($ in millions) Current 4Q25 Availability Utilizatio
Slide 31: Experienced Management Team with Track Record of Success at Leading Institutions
Experienced Management Team with Track Record of Success at Leading Institutions Jared Wolff Joe Kauder Chris Baron Chris Blake Chairman and Chief Executive Chief Financial Officer President, Community Banking Vice Chairman of the Bank Officer 30+ years of banking experience, 30+ years of banking ex
Slide 32: Appendix
Appendix
Slide 33: Non-GAAP Financial Information
Non-GAAP Financial Information Tangible assets, tangible common equity, tangible common equity ratio, tangible book value per common share, Efficiency ratio is calculated by dividing noninterest expense (less intangible asset amortization and acquisition, adjusted net earnings, adjusted return on av
Slide 34: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands, except per share data) 4Q25 3Q25 2Q25 1Q25 4Q24 Tangible Common Equity Ratio Total stockholders' equity $3,541,277 $3,466,739 $3,426,843 $3,521,656 $3,499,949 Less: preferred stock 498,516 498,516 498,516 498,516 498,516 Total common equity 3,042,761 2,968,22
Slide 35: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands) 4Q25 3Q25 2Q25 1Q25 4Q24 FY25 FY24 Return on Average Tangible Common Equity ("ROATCE") Net earnings $77,391 $69,629 $28,385 $53,568 $56,919 $228,973 $126,888 Earnings before income taxes $73,061 $70,103 $168,654 Add: Intangible asset amortization 7,160 7,770
Slide 36: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands, except per share amounts) 4Q25 3Q25 2Q25 1Q25 4Q24 FY25 FY24 Adjusted Net Earnings Net earnings $77,391 $69,629 $28,385 $53,568 $56,919 $228,973 $126,888 Earnings before income taxes $73,061 $70,103 $168,654 Add: FDIC special assessment - - 4,814 Add: Loss on
Slide 37: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands) 4Q25 3Q25 2Q25 1Q25 4Q24 FY25 FY24 PTPP and Adjusted PTPP Income Net interest income $251,362 $253,444 $240,216 $232,364 $235,285 $977,386 $926,050 Add: Noninterest income (loss) 41,571 34,285 32,633 33,650 28,989 142,139 77,145 Total revenue 292,933 287,729
Slide 38: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands) 4Q25 3Q25 2Q25 1Q25 4Q24 FY25 FY24 Adjusted Efficiency Ratio Noninterest expense $180,644 $185,684 $185,869 $183,653 $181,370 $735,850 $791,740 Less: Intangible asset amortization (6,788) (7,160) (7,159) (7,160) (7,770) (28,267) (33,143) Less: Acquisition, in
Slide 39: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands) 4Q25 3Q25 2Q25 1Q25 4Q24 Adjusted Noninterest Expense to Average Total Assets Noninterest expense $180,644 $185,684 $185,869 $183,653 $181,370 Less: Acquisition, integration, and reorganization costs - - - - 1,023 Adjusted noninterest expense $180,644 $185,68
Slide 40: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in millions) 4Q25 3Q25 4Q24 Core Deposits Total Deposits $27,843 $27,185 $27,192 Less: Brokered CDs (2,433) (2,259) (2,078) Less: Brokered Non-maturity Deposits (480) (166) (590) Total Core Deposits $24,930 $24,760 $24,524 Fourth Quarter 2025 Earnings | 40
Slide 41: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in millions) 4Q25 3Q25 Core Loans Total Loans HFI $25,033 $24,111 Discontinued Area Loans: Less: Premium Finance Loans (448) (465) Less: Student Loans (262) (276) Less: Civic Loans (39) (69) Total Discontinued Area Loans (749) (810) Total Core Loans $24,284 $23,301 Fourth
Slide 42: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands) 4Q25 3Q25 2Q25 1Q25 4Q24 Economic coverage ratio Allowance for credit losses ("ACL") $280,533 $270,722 $258,565 $264,557 $268,431 Add: Unearned credit mark from purchase accounting (1) 15,865 17,496 19,199 20,870 22,473 (2) Add: Credit-linked notes 108,413 11
Slide 43: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands) 4Q25 Adjusted ACL for Lower Loss Loan Categories Ratio Allowance for credit losses ("ACL") $280,533 Less: ACL on lower loss loan categories: ACL on warehouse lending loan portfolio (3,507) ACL on equity fund loan portfolio (598) ACL on lender finance loan por