Banc of California (BANC) investor relations material

Executive summary

• Q3 diluted EPS was $0.46, up 21% YoY; ROATCE reached 11.93% after Q2 balance-sheet repositioning.

• PTPP was $118.4m, up 16% YoY and 12% from Q1; revenue rose 6% YoY while non-interest expense was essentially flat.

• Core deposit growth, higher-yielding assets and continued loan production supported further expected earnings and margin improvement.

Financial highlights

• NII increased 9% QoQ to $272.4m; NIM expanded 21 bps to 3.34%.

• Net earnings available to common stockholders were $73.1m, or $0.46 per diluted share; adjusted core PTPP was $120.6m versus reported PTPP of $118.4m.

• Non-interest income was $31.4m, including ~$5m of non-recurring loan-sale and equity-investment losses; non-interest expense was $185.4m, down 2% QoQ.

• Provision expense was $10.4m; net charge-offs were $17.3m, with more than half previously specifically reserved at June 30.

• Loans HFI grew $379.7m QoQ to $24.6B; production and disbursements were $2.6B at a weighted-average rate of 6.58%.

Outlook and guidance

• Q4 PTPP guidance is $125m–$130m; NIM guidance is 3.35%–3.40%.

• Year-end CET1 guidance is 9.80%–9.90%; management expects further Q4 benefits from a full quarter of securities reinvestment and completed loan sales.

• Revised FY26 loan growth guidance, adjusted for sales, and core deposit growth are both mid-single digit; YTD growth was 4.8% and 3.4%, respectively.

• Revised Q4 ROATCE guidance is 12.0%–12.5%; CET1 of 10.0%+ is anticipated in Q1 2027.

• Multifamily repricing and new production above portfolio yield are expected to support returns; payments initiatives are expected to contribute to fee growth in 2027.