Banc of California (BANC) investor relations material

Executive summary

• Q3 net earnings were $83.1M, or $0.46 diluted EPS; net earnings available to common stockholders were $73.1M. PTPP was $118.4M, up 16% YoY, as NII and margin benefited from prior-quarter repositioning.

• Revenue rose 6% YoY to $303.8M while noninterest expense was essentially flat at $185.4M; Q2 included a $251.3M net loss tied to strategic repositioning.

• Core deposit growth, higher-yielding assets and improving credit measures supported the earnings rebound; management expects additional Q4 benefits from securities reinvestment and loan sales.

Financial highlights

• NII rose 9% QoQ to $272.4M and NIM expanded 21 bps to 3.34%; Q3 NII included a $2.8M FHLB stock special dividend.

• Provision for credit losses was $10.4M versus $161.8M in Q2; Q3 net charge-offs were $17.3M, with more than half previously specifically reserved at June 30.

• Q3 noninterest income included ~$5M of loan-sale and equity-investment losses; noninterest expense was $185.4M, down 2% QoQ and essentially flat YoY.

• 9M GAAP net earnings available to common stockholders were a loss of $116.2M, including repositioning effects; 9M noninterest income was a loss of $167.4M.

• Total assets were $35.0B at Sept. 30; deposits were $28.3B, HFI loans $24.6B and stockholders’ equity $3.35B.

Outlook and guidance

• Q4 PTPP guidance is $125M–$130M, with NIM guidance of 3.35%–3.40%; Q4 ROATCE guidance is 12.0%–12.5%.

• Year-end CET1 guidance is 9.8%–9.9%, with 10.0%+ anticipated in Q1 2027; FY26 loan growth adjusted for sales and core deposit growth guidance are both mid-single digit.

• A full quarter of higher-yielding securities and completed loan sales are expected to add Q4 earnings benefits; the construction loan sale is expected to contribute ~2 bps of NIM expansion.

• Priorities include disciplined loan growth, relationship-deposit growth, deeper client relationships and continued capital generation.