Banc Of California, Inc. · NYSE:BANC
Banc Of California — Q2 2026 Earnings Presentation
47 slides from Banc Of California's earnings presentation, Jul 29, 2026
Slide 1: Investor Presentation Second Quarter 2026 Results
Investor Presentation Second Quarter 2026 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: 2Q26 Financial Results
2Q26 Financial Results Core franchise momentum and strategic balance sheet repositioning drive higher recurring earnings power 9% 12% 3.30%+ 56% 31% ($1.61) Average Loan EOP Deposit NIM Post Loan Sale Decrease in Decrease in Loss Per Share Growth Annualized Growth Annualized and Reinvestments(1) Spe
Slide 4: Strategic Balance Sheet Repositioning
Strategic Balance Sheet Repositioning Implemented three strategic actions to generate higher recurring earnings and improve capital efficiency Strategic Action • Immediate Benefit Long-Term Benefit Securities Repositioning ❖Higher yields ❖Higher recurring NII Reallocated $2.3B of low-yielding ❖Short
Slide 5: Strategic Actions – Securities Repositioning
Strategic Actions – Securities Repositioning Securities repositioning drives higher recurring earnings Total Securities Portfolio Summary Key Takeaways ❖ Repositioned $2.3B of low-yielding 1Q26 2Q26 Change securities; Initial reinvestment of $1.7B of proceeds into higher-yielding assets as of 6/30 4
Slide 6: Strategic Actions – Loan Sale
Strategic Actions – Loan Sale Targeted loan sale reduces risk and strengthens our portfolio composition Strategic Benefits Transaction Overview Earnings Capital Credit ❖Initiated sale process of ❖Proceeds to be ❖Increased capital ❖Reduces special ~$825mm of select CRE loans redeployed into higher ef
Slide 7: 2026 Updated Outlook
2026 Updated Outlook Our strategic balance sheet repositioning creates higher recurring earnings and profitability (1) (1) NIM ROAA ROATCE PTPP 3.30-3.40% 0.95-1.00% 11.5-12.5% $125-$130mm By year-end By year-end By year-end 4Q26 3.30- 0.95- 11.5- $125- 3.40% 1.00% 12.5% $130mm 3.24% 0.86% 3.08% $10
Slide 8: Rapid Capital Generation
Rapid Capital Generation Compounded higher earnings growth provides path to CET1 above 10.0% in early 2027 CET1 Bridge 10.18% -0.54% Key Takeaways 9.80- 10.00%+ +0.30- 9.50- -0.44% 9.90%+ 0.40% 9.60%+ ❖Strategic actions accelerate organic capital generation ❖CET1 post loan sale closing is expected t
Slide 9: Quarterly Highlights
Quarterly Highlights Core franchise performance remained strong while strategic repositioning enhanced recurring earnings power Change (1) 2Q26 1Q26 2Q25 QoQ D YoY D Loans Deposits Reported Results Production(3) of $2.8B in 2Q26 Total end-of-period deposits up 12% PTPP(2) -$173.5mm $105.6mm $87.0mm
Slide 10: Noteworthy Items Affecting 2Q26 Results
Noteworthy Items Affecting 2Q26 Results Noteworthy items include the impact of significant transactions that were either unusual or elevated in magnitude during the quarter, largely related to our strategic repositioning Pre-Tax ❖Loan interest reversal impact related to loans Noteworthy Items Impact
Slide 11: Income Statement
Income Statement GAAP results reflect the 2Q26 strategic balance sheet repositioning actions, while underlying operating performance remained consistent with expectations ($ in millions) 2Q26 1Q26 2Q25 Key Income Statement Metrics 2Q26 1Q26 2Q25(1) Total interest income $414.6 $407.4 $420.5 Diluted
Slide 12: Balance Sheet
Balance Sheet Strategic repositioning actions result in a stronger balance sheet, positioning the company for even stronger financial performance ($ in millions) 2Q26 1Q26 2Q25 Key Balance Sheet Metrics 2Q26 1Q26 2Q25 Cash and cash equivalents $2,818 $2,217 $2,354 Average interest-earning assets $32
Slide 13: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin The benefits of the strategic repositioning should meaningfully increase NIM Net Interest Income (NII) ($mm) and Net Interest Margin (NIM) (%) 3.30- 3.30- 3.35% 3.40% 3.10% 3.22% 3.20% 3.24% 3.13% HIGHLIGHTS ❖ NIM expected at 3.30%+ following loan sale clo
Slide 14: Noninterest Income
Noninterest Income Underlying noninterest income remained stable despite strategic repositioning charges ($ in millions) 2Q26 1Q26 2Q25 HIGHLIGHTS Commissions and Fees $9.0 $11.0 $9.6 ❖ Noninterest income includes $256.7mm loss on securities AFS, and a $12.5mm loss for market valuation adjustment on
Slide 15: Noninterest Expense
Noninterest Expense Expense discipline remained unchanged while executing significant strategic actions during the quarter Adjusted Noninterest Expense(1) / Average Assets Ratio ($ in millions) 2Q26 1Q26 2Q25 2.21% 2.18% 2.16% 2.20% Compensation $85.1 $91.1 $88.4 2.12% Occupancy 14.7 14.9 15.5 IT an
Slide 16: Deposits
Deposits Deposit franchise continues to generate stable funding for future growth ($ in millions) 2Q26 1Q26 2Q25 HIGHLIGHTS Noninterest-bearing Checking $7,758 $7,798 $7,441 ❖ Deposits increased 12% annualized, reflecting continued franchise Checking 8,739 8,178 7,974 momentum and strong growth late
Slide 17: NIB Deposit Growth
NIB Deposit Growth New NIB business deposit(1) relationship growth continues to build franchise value 5,921 5,393 4,845 4,031 3,569 2,929 $1,212.6 2,390 $1,113.5 1,889 $965.2 $746.8 1,288 $643.2 $537.8 650 $382.6 $439.2 $257.8 $107.3 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Cumulative New N
Slide 18: Loan Activity
Loan Activity Strong loan production and disbursements of $2.8B continues to remix the portfolio Rate on Production (1) Total Loan Yield 7.29% 7.08% HIGHLIGHTS 5.93% 6.05% 6.83% 6.65% 6.39% 5.83% 5.74% 5.63% ❖ Broad-based 2Q26 production and ($ in millions) disbursements of $2.8B continued to remix
Slide 19: Loan Activity by Segment
Loan Activity by Segment Loan remix continues to strengthen portfolio yields 2Q26 1Q26 2Q25 Loan Segment Production + Payoffs + Wtd. Avg Production + Payoffs + Wtd. Avg Production + Payoffs + Wtd. Avg ($ in millions) Balances Disbursements Paydowns Rate Balances Disbursements Paydowns Rate Balances
Slide 20: Loan Portfolio
Loan Portfolio Loan growth reflects continued franchise momentum 2Q26 1Q26 Loan Segment % of Total Wtd. Avg. NPL % DQ % Coverage Coverage ($ in millions) 2Q26 1Q26 Variance Loans 2Q26 Rate 2Q26 2Q26 2Q26 ACL Ratio ACL Ratio Multifamily $5,445 $5,955 ($510) 22.5% 4.2% 0.21% 0.21% $50 0.92% $35 0.59%
Slide 21: Loan Maturity and Repricing Summary
Loan Maturity and Repricing Summary Approximately half of the multifamily portfolio is expected to reprice or mature over the next 2.5 years, providing meaningful embedded earnings upside HIGHLIGHTS Total Fixed Rate and Hybrid Loans – Maturities / Repricing Total fixed rate and hybrid loans: $13.3B
Slide 22: Asset Quality Ratios and Trends
Asset Quality Ratios and Trends Asset quality metrics strengthened through proactive portfolio management Targeted actions reduced potential migration and larger borrower concentration exposure Classified Loans ($mm) Special Mention Loans ($mm) 3.17% 3.20% 3.40% 2.73% 2.78% 2.10% 1.83% 2.71% 1.24% 2
Slide 23: Allowance for Credit Losses - Loans
Allowance for Credit Losses - Loans ACL coverage ratio increased to 1.14% 2Q26 ACL walk ($ in millions) Economic 1.63% HIGHLIGHTS coverage ratio(1) ❖ ACL remained stable QoQ at $276.2mm, with ACL ratio $276.5 increasing 2bps QoQ to 1.14% ❖ Net charge-offs were primarily driven by loans transferred t
Slide 24: Adjusted Allowance for Credit Losses Ratios
Adjusted Allowance for Credit Losses Ratios Adjusted ACL ratio(1) is significantly higher when adjusting for lower loss loan categories 2Q26 Adjusted ACL Ratio(1) Composition of Lower Loss Loan Categories 1.70% Lower Loss Loan Categories ($ in millions) 2Q26 1Q26 2Q25 1.42% 1.32% Residential $3,770
Slide 25: Investment Securities Portfolio
Investment Securities Portfolio Strategic securities repositioning will drive meaningful higher recurring earnings HIGHLIGHTS Yield Duration (yrs) Unrealized Unrealized Security Type (1) ❖ The securities portfolio is now positioned to contribute ($ in m illions) 2Q26 1Q26 Variance 2Q26 2Q26 Loss 2Q2
Slide 26: Capital
Capital Capital remains resilient while strategic actions position the company for faster organic capital generation Regulatory Well- Excess of Well- 2Q26 1Q26 2Q25 Capitalized Capitalized Consolidated Company Total Risk-Based Ratio 14.31% 16.55% 16.37% 10.00% 4.31% Tier 1 Risk-Based Capital 11.67%
Slide 27: Interest Rate Sensitivity
Interest Rate Sensitivity Balance sheet position provides flexibility across multiple interest-rate environments Ongoing balance sheet remixing will support further net interest income expansion 2Q26 IRR position – NII impact ($B) $21.5 $15.7 Asset / liability gap of ($5.8B) is largely neutral to NI
Slide 28: Supplemental Information
Supplemental Information
Slide 29: Share repurchases
Share repurchases Delivering shareholder value through share repurchases Share Repurchase Activity FY25 1Q26 2Q26 Total Repurchase Amount $185,498,388 $31,942,722 - $217,441,110 Price Per Share(1) $13.59 $18.68 - $14.16 Number of Shares Repurchased 13,648,429 1,709,935 - 15,358,364 (2) Common Shares
Slide 30: NDFI Lending Exposure
NDFI Lending Exposure Diversified NDFI exposure with history of minimal losses HIGHLIGHTS NDFI Lending Exposure ❖ Long history of strong asset quality performance with 10-Year+ almost no delinquencies, NPLs or classified loans Loan Type 2Q26 Loan 2Q26 % of 2Q26 NPL % of 2Q26 DQ % of 2Q26 Classified
Slide 31: CRE Portfolio
CRE Portfolio CRE portfolio has low weighted-average LTV and strong debt-service coverage ratio (DSCR) HIGHLIGHTS Total CRE is well diversified across multiple industries 2Q26 % of ❖ 76% of total CRE portfolio located in California Property Type 2Q26 % of Total Avg Loan WA ($ in millions) Count 2Q26
Slide 32: Customer Related Expense
Customer Related Expense ECR expenses remained relatively flat HIGHLIGHTS Customer Related Expense ($mm) ❖ Substantially all HOA deposits have ECR expenses $26.6 $26.2 $24.9 $23.7 $24.1 $4.7 $4.6 ❖ Average HOA balances increased due to business $4.1 $3.9 $3.7 growth ❖ Total HOA deposit costs are 2.7
Slide 33: Projects and Investments
Projects and Investments Expect total project and investment spend of ~$17mm in 2026, with ~$5.8mm of planned expense in 2026 Project investment composition Revenue enhancing projects Back office and support projects $3.2mm $0.4mm $4.3mm $2.5mm 19% 13% 18% $0.9mm 31% 28% 59% $13.8mm 81% $1.9mm 51% $
Slide 34: Liquidity
Liquidity Maintaining high levels of primary and secondary liquidity ($ in millions) Current 2Q26 Availability Utilization Capacity Primary Liquidity HIGHLIGHTS Cash and cash equivalents (1) $2,646 (2) ❖Uninsured and uncollateralized deposits AFS Securities (unpledged) 3,556 of $7.6B, which represen
Slide 35: Experienced Management Team with Track Record of Success at Leading Institutions
Experienced Management Team with Track Record of Success at Leading Institutions Jared Wolff Joe Kauder Bryan Corsini Ido Dotan Chairman and Chief Executive Chief Financial Officer Chief Credit Officer General Counsel and Chief Officer 35+ years of banking experience, Administrative Officer 30+ year
Slide 36: Appendix
Appendix
Slide 37: Non-GAAP Financial Information
Non-GAAP Financial Information Tangible assets, tangible common equity, tangible common equity ratio, tangible book value per common share, Efficiency ratio is calculated by dividing noninterest expense (less intangible asset amortization and acquisition, adjusted net earnings, adjusted return on av
Slide 38: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands, except per share data) 2Q26 1Q26 4Q25 3Q25 2Q25 Tangible Common Equity Ratio Total stockholders' equity $3,410,146 $3,553,326 $3,541,277 $3,466,739 $3,426,843 Less: preferred stock 498,516 498,516 498,516 498,516 498,516 Total common equity 2,911,630 3,054,81
Slide 39: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands) 2Q26 1Q26 4Q25 3Q25 2Q25 Return on Average Tangible Common Equity ("ROATCE") Net (loss) earnings ($241,347) $71,952 $77,391 $69,629 $28,385 Adjustments: Intangible asset amortization 6,349 6,348 6,788 7,160 7,159 Tax impact of adjustment above (1) (1,778) (1,
Slide 40: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands, except per share amounts) 2Q26 1Q26 4Q25 3Q25 2Q25 Adjusted Net (Loss) Earnings Net (loss) earnings ($241,347) $71,952 $77,391 $69,629 $28,385 Adjustments: Provision for credit losses related to transfer of loans to held for sale - - - - 26,289 Total Adjustme
Slide 41: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands) 2Q26 1Q26 4Q25 3Q25 2Q25 PTPP (Loss) Income Net interest income $250,501 $251,617 $251,362 $253,444 $240,216 Add: Noninterest (loss) income (234,096) 35,328 41,571 34,285 32,633 Total revenue 16,405 286,945 292,933 287,729 272,849 Less: Noninterest expense (1
Slide 42: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands) 2Q26 1Q26 4Q25 3Q25 2Q25 Adjusted Efficiency Ratio Noninterest expense $189,867 $181,391 $180,644 $185,684 $185,869 Less: Intangible asset amortization (6,349) (6,348) (6,788) (7,160) (7,159) Noninterest expense used for efficiency ratio $183,518 $175,043 $17
Slide 43: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands) 2Q26 1Q26 4Q25 3Q25 2Q25 Adjusted Noninterest Expense to Average Total Assets Noninterest expense $189,867 $181,391 $180,644 $185,684 $185,869 Less: Customer related expense (24,114) (23,737) (24,870) (26,227) (26,577) Adjusted noninterest expense $165,753 $1
Slide 44: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in millions) 2Q26 1Q26 2Q25 Core Deposits Total Deposits $28,121 $27,322 $27,528 Less: Brokered CDs (2,591) (2,562) (2,312) Less: Brokered Non-maturity Deposits (227) (226) (565) Total Core Deposits $25,303 $24,534 $24,652 Second Quarter 2026 Earnings | 44
Slide 45: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in millions) 2Q26 1Q26 Core Loans Total Loans HFI $24,211 $24,780 Discontinued Area Loans: Less: Premium Finance Loans (356) (408) Less: Student Loans (238) (250) Less: Civic Loans (24) (27) Total Discontinued Area Loans (618) (685) Total Core Loans $23,592 $24,095 Second
Slide 46: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands) 2Q26 1Q26 4Q25 3Q25 2Q25 Economic Coverage Ratio Allowance for credit losses ("ACL") $276,240 $276,521 $280,533 $270,722 $258,565 Add: Unearned credit mark from purchase accounting (1) 12,920 14,315 15,865 17,496 19,199 (2) Add: Credit-linked notes 105,026 10
Slide 47: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands) 2Q26 Adjusted ACL for Lower Loss Loan Categories Ratio Allowance for credit losses ("ACL") $276,240 Less: ACL on lower loss loan categories: ACL on warehouse lending loan portfolio (4,030) ACL on equity fund loan portfolio (461) ACL on lender finance loan por