Banc Of California, Inc. · NYSE:BANC
Banc Of California — Q3 2026 Earnings Presentation
41 slides from Banc Of California's earnings presentation, Oct 27, 2026
Slide 1: Investor Presentation Third Quarter 2026 Results
Investor Presentation Third 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: Quarterly Overview
Quarterly Overview 3Q results demonstrate higher and even more durable earnings power following strategic balance sheet repositioning in 2Q Higher Earnings $0.46 Diluted EPS up $0.07 or 18% from 1Q pre-restructuring earnings baseline 11.93% ROATCE (1) up 202 bps from 1Q Net interest income of $272mm
Slide 4: Strategic actions: expectations versus realized results
1. AFS securities yield includes only the yield on securities classified as available for sale and excludes the yield on other non-AFS securities, including FRB and FHLB stock. The total securities yield for 3Q26 was 4.86%. 2. Of the $300mm in construction loan sales, $235mm were sold and $65mm were
Slide 5: Core Earnings Drivers
Core Earnings Drivers 1. Includes one-time $2.8mm special dividend received on FHLB stock, which is carried at cost. 2. Denotes a non-GAAP financial measure; see slides in “Non-GAAP Measures" section. Growth of NII driven by balance sheet yields, rates & mix Higher 3Q NII & NIM $253.4 $250.5 $272.4
Slide 6: Financial Highlights
Higher earnings and expanding operating leverage create a strong earnings foundation with continued growth expected ahead Financial Highlights Third Quarter 2026 Earnings | 6 1. Denotes a non-GAAP financial measure; see slides in “Non-GAAP Measures" section. 2. September 30, 2026 capital ratios are
Slide 7: 2026 Updated Outlook
Balance Sheet Earnings Profitability Capital Third Quarter 2026 Earnings | 7 2026 Updated Outlook Strong 3Q performance reinforces 4Q guidance and path to even higher earnings ahead; 4Q PTPP guidance implies 6-10% sequential growth $118.4 Actual 3Q26 Original 4Q26 Revised 4Q26 $125-$130 $125-$130 Pr
Slide 8: Core relationship deposit growth reduced brokered funding
Core relationship deposit growth reduced brokered funding and helped contain the increase in deposit costs ($ in millions) 3Q26 2Q26 3Q25 Noninterest-bearing Checking $7,691 $7,758 $7,604 Checking 9,024 8,739 7,931 MMDA 5,719 5,137 4,974 Savings 1,863 1,835 1,949 CDs 3,964 4,653 4,727 Total Deposits
Slide 9: 8% annualized core loan growth with robust production
3Q26 2Q26 3Q25 QoQ Δ YoY Δ Wtd. Avg. Rate 3Q26 Core Loan Portfolio (1) $24,066 $23,592 $23,301 $473 $765 5.7%0 0 0 $ - 0% Discontinued Areas $525 $618 $810 ($93) ($285) 4.1%0 $ - Total Loans and Leases HFI $24,591 $24,211 $24,111 $380 $480 5.6% Loans Held for Sale (HFS) 499 915 211 (416) 287 6.8% To
Slide 10: Loan segment balances, production and payoffs
3Q26 2Q26 3Q25 Loan Segment ($ in millions) Balances Production + Disbursements Payoffs + Paydowns Wtd. Avg Rate Balances Production + Disbursements Payoffs + Paydowns Wtd. Avg Rate Balances Production + Disbursements Payoffs + Paydowns Wtd. Avg Rate Multifamily $5,377 $63 ($129) 4.3% $5,445 $139 ($
Slide 11: Loan segment credit quality and ACL coverage
3Q26 2Q26 3Q26 2Q26 Variance % of Total Loans 3Q26 Wtd. Avg. Rate 3Q26 NPL % 3Q26 DQ % 3Q26 ACL Coverage Ratio ACL Coverage Ratio Multifamily $5,377 $5,445 ($69) 21.9% 4.3% 0.1% 0.1% $50 0.93% $50 0.92% Other CRE 3,374 3,405 (31) 13.7% 5.4% 1.5% 0.5% 73 2.17% 87 2.55% Real Estate Construction 1,475
Slide 12: Multifamily loan maturities and repricing
$0.4 $0.4 $1.3$0.6 $0.6 $0.7 $0.2$0.9 $0.1 $0.1 5.8% 3.5% 5.5% 5.5% 3.4% 4.0% 6.4% 3.9% 4.1% 6.4% 3.6% 4.3% 6.58% Total Multifamily Loans – Maturities / Repricing Variable Rate: Hybrid Rate: Fixed Rate: Rate on new production: Total Multifamily loans: $5.4B <= 1 Year 1-2 Years 2-3 Years > 3 Years $1
Slide 13: Asset Quality Ratios and Trends
Asset Quality Ratios and Trends Nonperforming, classified and delinquent loans decreased QoQ HIGHLIGHTS ❖ Asset quality metrics continued to trend favorably QoQ, with nonperforming, classified and delinquent loan ratios declining 12 bps, 35 bps and 25 bps, respectively ❖ Classified and delinquent lo
Slide 14: Allowance for Credit Losses
❖ ACL decreased $6.9mm reflecting: ❖ Net charge-offs of $17.3mm of which $10.0mm had been specifically reserved for as of 2Q26 ❖ Provision of $10.4mm reflects growth in held for investment loan portfolio ❖ In addition, our ability to absorb certain credit losses is also bolstered by (i) $109.9mm of
Slide 15: AFS securities portfolio
1. Total securities yield is calculated using average fair values for the quarter. 2. Duration is measured in years. AFS Securities portfolio growth of 13% QoQ driven by re-investment of remaining HTM restructuring proceeds and deployment of excess liquidity from deposit growth ❖ Average securities
Slide 16: Capital and Tangible Book Value
3Q26(3) 2Q26 3Q25 Total Risk-Based Ratio 14.71% 14.31% 16.69% Tier 1 Risk-Based Capital 12.10% 11.67% 12.56% CET1 Ratio 9.70% 9.25% 10.14% Leverage Ratio 9.14% 8.89% 9.77% TCE Ratio(2) 7.35% 7.50% 7.84% TBVPS(2) $16.09 $16.44 $16.99 1. 3Q26 regulatory capital ratios are preliminary. 2. Denotes a non
Slide 17: Interest rate risk sensitivity
Third Quarter 2026 Earnings | 17 IRR and total earnings sensitivities remain neutral; balance sheet constructed to manage a range of interest rate environments 3Q26 IRR position – NII impact ($B) ❖ When adjusted for deposit repricing betas, short-term net interest income and total earnings sensitivi
Slide 18: Appendix
Appendix
Slide 19: Key Income Statement Metrics
Key Income Statement Metrics 3Q26 2Q26 1Q26 4Q25 3Q25 Diluted EPS $0.46 ($1.61) $0.39 $0.42 $0.38 ROAA 0.94% -2.79% 0.86% 0.91% 0.82% ROATCE(1) 11.93% -36.18% 9.91% 10.75% 9.87% Net interest margin 3.34% 3.13% 3.24% 3.20% 3.22% NIE / average assets 2.10% 2.20% 2.16% 2.12% 2.18% Adj. NIE / average as
Slide 20: Key Balance Sheet Metrics
Key Balance Sheet Metrics 3Q26 2Q26 1Q26 4Q25 3Q25 Average interest-earning assets $32,354 $32,118 $31,471 $31,169 $31,198 CET1 ratio 9.70% 9.25% 10.18% 10.01% 10.14% Tangible common equity ratio(1) 7.35% 7.50% 7.97% 7.90% 7.84% Tangible book value per share(1) $16.09 $16.44 $17.77 $17.51 $16.99 Cas
Slide 21: Noninterest Income
($ in millions) 3Q26 2Q26 3Q25 Leased Equipment Income $9.8 $7.8 $10.3 Commissions and Fees 9.3 9.0 9.5 Service Charges on Deposits 4.9 4.8 5.1 Dividends & Gains on Equity Investments 2.7 3.3 2.3 Gain (Loss) on securities AFS 0.7 (256.7) 0.0 Other Income (Loss) (1) 4.0 (2.3) 7.1 Total Noninterest In
Slide 22: Noninterest Expense
($ in millions) 3Q26 2Q26 3Q25 Compensation $87.3 $85.1 $88.9 Occupancy 14.7 14.7 15.4 IT and data processing 13.1 13.8 13.5 Professional services 5.9 5.6 5.4 Insurance and assessments 12.2 14.5 9.0 Intangible asset amortization 6.2 6.3 7.2 Leased equipment depreciation 6.1 5.2 6.8 Loan expense 4.7
Slide 23: Noninterest Expense Detail
Noninterest Expense Detail ($mm) $26.2 $9.0 $61.6 $88.9 3Q25 $24.9 $7.1 $62.8 $85.9 4Q25 $23.7 $6.8 $59.8 $91.1 1Q26 $24.1 $14.5 $66.1 $85.1 2Q26 $24.8 $12.2 $61.0 $87.3 3Q26 $185.7 $180.6 $181.4 $189.9 $185.4 Compensation expense Other operating expenses Insurance and assessments Customer related e
Slide 24: Lower Loss Loan Categories
Lower Loss Loan Categories ($ in millions) 3Q26 Residential $4,081 Warehouse 1,814 Fund Finance 1,375 Lender Finance 2,190 Total Lower Loss Loans $9,460 Total Loans and Leases HFI $24,591 Lower Loss Loans / Total Loans and Leases HFI 38.5% Adjusted ACL ratio(1) is significantly higher when adjusting
Slide 25: CRE portfolio composition
❖ 76% of total CRE portfolio located in California ❖ Total CRE has a low weighted average LTV of 57% ❖ Other Property Types includes mobile homes, gas stations, special use, schools, places of worship and restaurants 7.7% 7.9% 5.3% 2.8% 2.5% 2.9% 1.7% 2.1% Office Industrial Retail Hotel Self Storage
Slide 26: NDFI Lending Exposure
Loan Type ($ in millions) 3Q26 Loan Balance 3Q26 % of Total Loans HFI 3Q26 NPL % of Total Loans HFI 3Q26 DQ % of Total Loans HFI 3Q26 Classified % of Total Loans HFI 10-Year+ Historical NCO Rate(1) Mortgage Warehouse $1,814 7.4% 0.00% 0.00% 0.00% 0.051% Fund Finance(2) 1,500 6.1% 0.00% 0.00% 0.00% 0
Slide 27: NIB Deposit Growth
650 1,288 1,889 2,390 2,929 3,569 4,031 4,845 5,393 5,921 6,249 $107.3 1Q24 $257.8 2Q24 $382.6 3Q24 $439.2 4Q24 $537.8 1Q25 $643.2 2Q25 $746.8 3Q25 $965.2 4Q25 $1,113.5 1Q26 $1,212.6 2Q26 $1,313.8 3Q26 Cumulative New NIB Business Deposits Accounts Cumulative New NIB Business Deposits ($ millions) Ne
Slide 28: Share Repurchases
Note: Common shares outstanding as of September 30, 2026 are 158,459,635. 1. Represents VWAP of shares repurchased. 2. Common shares outstanding are as of March 17, 2025 for Full Year 2025, December 31, 2025 for 1Q26, March 31, 2026 for 2Q26, June 30, 2026 for 3Q26. Total is based on share count fro
Slide 29: Liquidity
Third Quarter 2026 Earnings | Liquidity Maintaining high levels of primary and secondary liquidity ($ in millions) September 30, 2026 Current Availability Utilization Capacity Primary Liquidity Cash & Cash Equivalents(a) $1,991 AFS Securities (unpledged)(b) 3,912 Total Primary Liquidity $5,903 Total
Slide 30: Banc of California: Who We Are
Banc of California: Who We Are ❖ We are a premier, relationship-focused, full-service business bank ❖ Largest independent bank headquartered in Los Angeles ❖ National presence through 76 retail branches in California, Colorado and North Carolina and specialty businesses ❖ Big-bank expertise and capa
Slide 31: Experienced Management Team
Experienced Management Team with Track Record of Success at Leading Institutions Scott Ladd Chief Credit Officer for Specialty Banking and Credit Operations 25+ years banking and consulting experience, previously served as EVP, Group Head, Portfolio Management at PacWest Bancorp Hamid Hussain Presid
Slide 32: Non-GAAP Measures
Non-GAAP Measures
Slide 33: Non-GAAP Financial Information
Non-GAAP Financial Information Third Quarter 2026 Earnings | 33 Tangible assets, tangible common equity, tangible common equity ratio, tangible book value per common share, return on average tangible common equity, pre-tax pre-provision (“PTPP”) income, adjusted noninterest expense, efficiency ratio
Slide 34: Tangible common equity ratio reconciliation
($ in thousands, except per share data) 3Q26 2Q26 1Q26 4Q25 3Q25 Tangible Common Equity Ratio Total stockholders' equity $3,348,829 $3,410,146 $3,553,326 $3,541,277 $3,466,739 Less: preferred stock 498,516 498,516 498,516 498,516 498,516 Total common equity 2,850,313 2,911,630 3,054,810 3,042,761 2,
Slide 35: Return on Average Tangible Common Equity
($ in thousands) 3Q26 2Q26 1Q26 4Q25 3Q25 Return on Average Tangible Common Equity ("ROATCE") Net earnings (loss) $83,057 ($241,347) $71,952 $77,391 $69,629 Adjustments: Intangible asset amortization 6,188 6,349 6,348 6,788 7,160 Tax impact of adjustment above (1) (1,431) (1,778) (1,596) (1,823) (1,
Slide 36: PTPP Income Reconciliation
Non-GAAP Reconciliation Third Quarter 2026 Earnings | 36 ($ in thousands) 3Q26 2Q26 1Q26 4Q25 3Q25 PTPP Income (Loss) Net interest income $272,442 $250,501 $251,617 $251,362 $253,444 Add: Noninterest income (loss) 31,356 (234,096) 35,328 41,571 34,285 Total revenue 303,798 16,405 286,945 292,933 287
Slide 37: Adjusted Efficiency Ratio
($ in thousands) 3Q26 2Q26 1Q26 4Q25 3Q25 Adjusted Efficiency Ratio Noninterest expense $185,370 $189,867 $181,391 $180,644 $185,684 Less: Intangible asset amortization (6,188) (6,349) (6,348) (6,788) (7,160) Noninterest expense used for efficiency ratio $179,182 $183,518 $175,043 $173,856 $178,524
Slide 38: Adjusted Noninterest Expense to Average Total Assets
($ in thousands) 3Q26 2Q26 1Q26 4Q25 3Q25 Noninterest expense $185,370 $189,867 $181,391 $180,644 $185,684 Less: Customer related expense (24,834) (24,114) (23,737) (24,870) (26,227) Adjusted noninterest expense $160,536 $165,753 $157,654 $155,774 $159,457 Average assets $35,020,470 $34,644,930 $34,
Slide 39: Core Deposits Non-GAAP Reconciliation
($ in millions) 3Q26 2Q26 3Q25 Total Deposits $28,260 $28,121 $27,185 Less: Brokered CDs (1,958) (2,591) (2,259) Less: Brokered Non-maturity Deposits (485) (227) (166) Total Core Deposits $25,818 $25,303 $24,760 Core Deposits Non-GAAP Reconciliation Third Quarter 2026 Earnings | 39
Slide 40: Core Loans Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in millions) 3Q26 2Q26 Total Loans HFI $24,591 $24,211 Discontinued Area Loans: Less: Premium Finance Loans (278) (356) Less: Student Loans (228) (238) Less: Civic Loans (20) (24) Total Discontinued Area Loans (525) (618) Total Core Loans $24,066 $23,592 Core Loans Third Q
Slide 41: Adjusted ACL ratio reconciliation
Non-GAAP Reconciliation 1. Lower loss loan categories include warehouse lending loans, equity fund loans, lender finance loans and residential mortgage loans. 2. ACL divided by loans and leases held for investment. 3. Adjusted ACL for lower loss loan categories (includes SFR, Warehouse, Fund Finance