Banc Of California, Inc. · NYSE:BANC
Banc Of California — Q3 2025 Earnings Presentation
41 slides from Banc Of California's earnings presentation, Oct 23, 2025
Slide 1: Investor Presentation Third Quarter 2025 Results
Investor Presentation Third Quarter 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: Strong growth in 3Q25 EPS
Financial Highlights Strong growth in 3Q25 EPS to $0.38 reflects positive operating leverage EPS Operating Leverage Change (2) (2) PTPP(1) +17% QoQ; revenues +5%, 3Q25 2Q25 3Q24 QoQ D YoY D EPS(2): $0.38, +23% QoQ expenses flat Operating results PTPP(1) $102.0mm $87.0mm $80.0mm 17% 28% EPS $0.38 $0.
Slide 4: Significant Growth in Performance Trends Across the Board
Financial Highlights Significant Growth in Performance Trends Across the Board PTPP(1) TBVPS(1) EPS(2) 24% $102.0mm 5% $16.99 46% $0.38 $0.31 $16.46 $87.0mm $0.26 $82.4mm $16.12 1Q25 2Q25 3Q25 1Q25 2Q25 3Q25 1Q25 2Q25 3Q25 Net Interest Margin ROAA(2) ROATCE(1)(2) 3.22% 0.82% 9.87% 14bps 17bps 231 bp
Slide 5: Income Statement
Income Statement Strong PTPP(1) growth of 17% QoQ driven by NIM expansion and Average yield on loans and leases expense discipline +12 bps ($ in millions) 3Q25 2Q25 3Q24 Key Income Statement Metrics 3Q25 2Q25(2) 3Q24(2) 6.05% Total interest income $432.5 $420.5 $446.9 EPS $0.38 $0.31 $0.25 5.93% Tot
Slide 6: Balance Sheet
Balance Sheet Strengthened balance sheet with growth in NIB deposits, capital and TBVPS ($ in millions) 3Q25 2Q25 3Q24 Key Balance Sheet Metrics 3Q25 2Q25 3Q24 Cash and cash equivalents $2,398 $2,354 $2,554 Average interest-earning assets $31,198 $31,097 $31,575 Investment securities 4,890 4,725 4,7
Slide 7: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin Solid NIM expansion driven by higher loan yields and lower deposit costs 9/30 Spot NIM of Net Interest Income (NII) ($mm) and Net Interest Margin (NIM) (%) 3.18% 3.22% 3.08% 3.10% NIM up 12 bps 3.04% 2.93% QoQ as loan yields increased 12bps and deposit cos
Slide 8: Noninterest Income
Noninterest Income Noninterest income is in line with normal run-rate HIGHLIGHTS ($ in millions) 3Q25 2Q25 3Q24 Leased Equipment Income $10.3 $10.2 $17.2 ❖Noninterest income of $34.3mm was up 5% QoQ due primarily to increase in the fair values of items Commissions and Fees 9.5 9.6 8.3 requiring MTM
Slide 9: Noninterest Expense
Noninterest Expense Noninterest expenses flat, driving efficiency ratio down over 3% QoQ Adjusted Noninterest Expense / Average Assets Ratio(1) ($ in millions) 3Q25 2Q25 3Q24 2.27% 2.24% Compensation $88.9 $88.4 $85.6 2.21% 2.18% 2.16% Occupancy 15.4 15.5 16.9 IT and data processing 13.5 13.1 15.0 P
Slide 10: Deposits
Deposits ~9% annualized NIB deposit growth drove lower brokered deposits and deposit costs ($ in millions) 3Q25 2Q25 3Q24 ❖ 3Q average checking and MMDA balances excluding brokered non-maturity Noninterest-bearing Checking $7,604 $7,441 $7,812 deposits were up slightly QoQ Checking 7,931 7,974 7,540
Slide 11: NIB Deposit Growth
NIB Deposit Growth Continued steady growth in new NIB business deposit relationships and balances(1) 4,031 3,569 2,929 2,390 1,889 $746.8 $643.2 1,288 $537.8 $439.2 $382.6 650 $257.8 $107.3 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 Cumulative New NIB Business Deposits Accounts Cumulative New NIB Business D
Slide 12: Loan Activity
Loan Activity Total loan production & disbursements of $2.1B, rate on production remains strong Rate on Production 8.29% Total Loan Yield 7.20% 7.29% 7.00% 6.18% 7.08% 6.01% 5.90% 5.93% Loan yield increased QoQ due to mix 6.05% shift to higher yielding loan segments ($ in millions) and higher accret
Slide 13: Loan Portfolio
Loan Portfolio Growth across most higher yielding C&I loan categories offset by elevated payoff/paydown activity Core loan portfolio has strong credit quality with appropriate reserve levels for low loan loss categories 3Q25 2Q25 Loan Segment Total % of Total Wtd. Avg. NPL % DQ % Coverage Coverage (
Slide 14: NDFI Lending Exposure
NDFI Lending Exposure Diversified NDFI exposure with history of minimal losses HIGHLIGHTS NDFI Lending Exposure ❖ Long history of strong asset quality 3Q25 % of 10-Year performance with almost no delinquencies, Loan Type 3Q25 Loan Total 3Q25 Historical NPLs or classified loans since 2020 ($ in milli
Slide 15: Asset Quality Ratios and Trends
Asset Quality Ratios and Trends Credit quality remains stable with criticized loans down 4% QoQ Nonperforming Loans ($mm) Classified Loans ($mm) HIGHLIGHTS 0.88% 0.80% 3.17% 3.17% ❖ Criticized loans declined 4% QoQ driven by 0.72% 0.69% 0.72% 2.27% 2.37% 2.71% reduction in special mention loans part
Slide 16: Allowance for Credit Losses - Loans
Allowance for Credit Losses - Loans Increased ACL coverage ratio to 1.12% 3Q25 ACL walk Economic 1.65% HIGHLIGHTS ($ in millions) coverage ratio(1) ❖ ACL increased $12.2mm reflecting: ❖ Net recoveries of $2.5mm include CRE HFS loan paying off at par $258.6 $9.7 ❖ Provision of $9.7mm driven by update
Slide 17: Adjusted Allowance for Credit Losses Ratios
Adjusted Allowance for Credit Losses Ratios Adjusted ACL ratio(1) is significantly higher when adjusting for lower loss loan categories Adjusted ACL Ratio(1) Composition of Lower Loss Loan Categories 1.54% Lower Loss Loan Categories 1.37% ($ in millions) 3Q25 2Q25 3Q24 1.28% 1.12% Residential $3,094
Slide 18: Investment Securities Portfolio
Investment Securities Portfolio Maintaining diversified securities portfolio with stable balances and yields Yield Duration (yrs) Unrealized Unrealized Security Type(1) ($ in millions) 3Q25 2Q25 Variance 3Q25 3Q25 Loss 3Q25 Loss 2Q25 HIGHLIGHTS AFS - Gov't & Agency $1,680 $1,453 $228 3.57% 5.4 ($161
Slide 19: Capital
Capital Continuing to grow capital levels and TBVPS Regulatory Well- Excess of Well- 3Q25 2Q25 3Q24 Capitalized Capitalized Consolidated Company Total Risk-Based Ratio 16.69% 16.37% 17.00% 10.00% 6.69% Repurchased 1.4% of outstanding shares in 3Q25 and 5.3% in Tier 1 Risk-Based Capital 12.56% 12.34%
Slide 20: Interest Rate Sensitivity
Interest Rate Sensitivity IRR position remains largely neutral for NII sensitivity; total earnings are liability sensitive 3Q25 IRR position – NII impact ($B) $19.6 Asset / liability gap of $14.3 ($5.3B) is largely neutral to NII when adjusting for deposits HIGHLIGHTS repricing betas ❖ Gap between s
Slide 21: Loan Maturity and Repricing Summary
Loan Maturity and Repricing Summary 19% 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 – Maturities / Repricing Loan maturing or Total fi
Slide 22: 2025 Outlook
Outlook 2025 outlook Outlook as of 2Q25 earnings Current outlook Key factors Future state financial targets remain unchanged ❖ Driven by growth in ❖ ROAA ~1.1%+ ❖ Target mid single digit growth ❖ Unchanged commercial loans Loans ❖ ROTCE ~13%+ ❖ Cautious given uncertain economic conditions ❖ Continue
Slide 23: Supplemental Information
Supplemental Information
Slide 24: Share Repurchases
Share repurchases Delivering shareholder value through share repurchases Share Repurchase Activity 1Q25 2Q25 3Q25 Total Repurchase Amount $38,545,698 $111,454,299 $35,498,391 $185,498,388 Price Per Share(1) $14.36 $12.65 $16.48 $13.59 Number of Shares Repurchased 2,684,823 8,809,814 2,153,792 13,648
Slide 25: CRE Portfolio
CRE Portfolio High quality CRE portfolio has low weighted-average LTV and strong debt- service coverage ratio (DSCR) Total CRE is well diversified across multiple industries HIGHLIGHTS 3Q25 % of ❖ 74% of total CRE portfolio located in California Property Type 3Q25 % of Total Avg Loan WA ($ in millio
Slide 26: Customer Related Expense
Customer Related Expense ECR expenses were flat as deposit balances remained relatively stable Adjusted Noninterest Expense Detail(1) ($mm) Customer Related Expense ($mm) $34.5 $196.7 $31.7 $4.6 ECR indexed to Fed $185.9 $185.7 $4.2 $27.8 $26.6 $182.4 $183.7 $26.2 Funds rate with every $4.1 25bps ch
Slide 27: Projects and Investments
Projects and Investments Expect total project and investment spend of $16mm in 2025, with $6mm of planned expense in 2025 Project investment composition Revenue enhancing projects Back office and support projects $1.4mm $5.3mm $1.5mm $2.3mm 15% $3.7mm 27% 34% 35% 43% 66% $10.5mm 30% $5.3mm 50% $1.6m
Slide 28: Liquidity
Liquidity Maintaining high levels of primary and secondary liquidity ❖Uninsured and uncollateralized deposits of $7.6B, which represents ~28% of total deposits ❖Total primary and secondary liquidity was 1.9x uninsured and uncollateralized deposits ($ in millions) Current 3Q25 Availability Utilizatio
Slide 29: Experienced Management Team with Track Record of Success
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 30: Appendix
Appendix
Slide 31: 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 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands, except per share data) 3Q25 2Q25 1Q25 4Q24 3Q24 Tangible Common Equity Ratio Total stockholders' equity $3,466,739 $3,426,843 $3,521,656 $3,499,949 $3,496,198 Less: preferred stock 498,516 498,516 498,516 498,516 498,516 Total common equity 2,968,223 2,928,32
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands) 3Q25 2Q25 1Q25 4Q24 3Q24 Return on Average Tangible Common Equity ("ROATCE") Net earnings $69,629 $28,385 $53,568 $56,919 $8,784 Earnings before income taxes $73,061 $70,103 $11,514 Add: Intangible asset amortization 7,160 7,770 8,485 Adjusted earnings before
Slide 34: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands, except per share amounts) 3Q25 2Q25 1Q25 4Q24 3Q24 Adjusted Net Earnings Net earnings $69,629 $28,385 $53,568 $56,919 $8,784 Earnings before income taxes $73,061 $70,103 $11,514 Add: Loss on sale of securities - NA 59,946 Less: Acquisition, integration, and r
Slide 35: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands) 3Q25 2Q25 1Q25 4Q24 3Q24 PTPP and Adjusted PTPP Income Net interest income $253,444 $240,216 $232,364 $235,285 $232,175 Add: Noninterest income (loss) 34,285 32,633 33,650 28,989 (15,452) Total revenue 287,729 272,849 266,014 264,274 216,723 Less: Noninterest
Slide 36: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands) 3Q25 2Q25 1Q25 4Q24 3Q24 Adjusted Efficiency Ratio Noninterest expense $185,684 $185,869 $183,653 $181,370 $196,209 Less: Intangible asset amortization (7,160) (7,159) (7,160) (7,770) (8,485) Less: Acquisition, integration, and reorganization costs - - - 1,02
Slide 37: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands) 3Q25 2Q25 1Q25 4Q24 3Q24 Adjusted Noninterest Expense to Average Total Assets Noninterest expense $185,684 $185,869 $183,653 $181,370 $196,209 Less: Acquisition, integration, and reorganization costs - - - 1,023 510 Adjusted noninterest expense $185,684 $185,
Slide 38: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in millions) 3Q25 2Q25 3Q24 Core Deposits Total Deposits $27,185 $27,528 $26,828 Less: Brokered CDs (2,259) (2,312) (1,993) Less: Brokered Non-maturity Deposits (166) (565) (639) Total Core Deposits $24,760 $24,652 $24,196 Third Quarter 2025 Earnings | 38
Slide 39: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in millions) 3Q25 2Q25 Core Loans Total Loans HFI $24,111 $24,246 Discontinued Area Loans: Less: Premium Finance Loans (465) (473) Less: Student Loans (276) (286) Less: Civic Loans (69) (75) Total Discontinued Area Loans (810) (834) Total Core Loans $23,301 $23,412 Third Q
Slide 40: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands) 3Q25 2Q25 1Q25 4Q24 3Q24 Economic coverage ratio Allowance for credit losses ("ACL") $270,722 $258,565 $264,557 $268,431 $281,916 Add: Unearned credit mark from purchase accounting (1) 17,496 19,199 20,870 22,473 24,678 (2) Add: Credit-linked notes 110,539 11
Slide 41: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in thousands) 3Q25 Adjusted ACL for Lower Loss Loan Categories Ratio Allowance for credit losses ("ACL") $270,722 Less: ACL on lower loss loan categories: ACL on warehouse lending loan portfolio (4,672) ACL on equity fund loan portfolio (914) ACL on lender finance loan por