Banc of California Inc (BANC)

The problem with BANC is they don't have much new to offer in the way of bancing.

Banc of California, Inc. Announces Quarterly DividendsMay 8, 2026 6:05 AM
Business Wire Banc of California, Inc. (the “Company”) (NYSE: BANC) announced today that its Board of Directors declared a quarterly cash dividend of $0.12 per share on its outstanding common stock. The dividend will be payable July 1, 2026, to stockholders of record as of June 15, 2026. The Board of Directors also declared a quarterly cash dividend of $0.4845 per depositary share on its 7.75% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series F. The dividend will be payable June 1, 2026, to stockholders of record as of May 21, 2026. The Series F depositary shares are traded on the New York Stock Exchange under the “Banc/PF” symbol. The Company maintains a Dividend Reinvestment Plan (DRIP) which allows common stockholders to automatically acquire common shares at a 3% discount from the applicable market price. All registered common stockholders with holdings maintained at the Company’s transfer agent, Computershare, are eligible to participate in the DRIP program. For more information on the Company’s DRIP program, please contact Investor Relations at

Banc of California, Inc. Reports First Quarter Diluted Earnings per Share of $0.39, Up 50% Year over Year; Net Interest Margin Expands to 3.24%; Positive Operating Leverage ContinuesApril 22, 2026 4:15 PM
Business Wire
Banc of California, Inc. (NYSE: BANC):




Quarter Highlights








$0.39






Earnings Per Share






 






$19.80

Book Value Per Share



$17.77

Tangible Book Value




Per Share(1)






 






3.24%

Net Interest Margin




 






 






4%

Loan Average Annualized Growth



4%

Noninterest-bearing Deposit Average Annualized Growth







Banc of California, Inc. (NYSE: BANC) (“Banc of California” or the “Company”), the parent company of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the first quarter ended March 31, 2026. The Company reported net earnings available to common and equivalent stockholders of $62.0 million, or $0.39 per diluted common share, for the first quarter of 2026, compared to $67.4 million, or $0.42 per diluted common share for the fourth quarter of 2025.


During the quarter, the Company extended its existing $300 million stock repurchase program through March 2027 and announced plans to redeem $385 million of subordinated debt, reflecting continued capital flexibility and commitment to creating value for our shareholders.



Jared Wolff, Chairman & CEO of Banc of California, commented, “Our first quarter results reflect disciplined execution and continued strength in our core earnings drivers. We delivered positive operating leverage and significant earnings growth year over year, supported by net interest margin expansion, disciplined expense management, and continued progress in improving the mix and earnings power of the balance sheet. Supported by our healthy capital and liquidity position, we also efficiently deployed capital through opportunistic share repurchases and announced the redemption of subordinated debt. As we look ahead, we are well positioned for continued earnings growth, supported by strong pipelines, embedded asset repricing opportunities, and our attractive market position.”

First Quarter 2026 Financial Highlights:



Total revenue of $286.9 million, up 8% year over year, with pre-tax pre-provision income(1) of $105.6 million, up 28% year over year.



Net interest margin expanded 4 basis points to 3.24% compared to fourth quarter 2025, driven by an 11 basis point decline in deposit costs.



Average total deposits increased by $103.4 million, and average noninterest-bearing deposits grew $81.2 million to 28.9% of average total deposits.



First quarter loan production and disbursements totaled $2.1 billion, with a weighted average interest rate on production of 6.65%, supporting our balance sheet remixing and providing embedded earnings upside as higher-rate production replaces lower-yielding fixed-rate and hybrid loans.



Average total loans increased $267.5 million.



Total noninterest expense of $181.4 million, down 1% year over year.



Maintained allowance for credit losses coverage of 1.12% of total loans held for investment.



Repurchased $31.9 million of common stock and common equivalent stock at a weighted average price per share of $18.68.



Growth in book value per share to $19.80 and tangible book value per share(1) to $17.77, up 9% and 10% year over year, respectively.



Healthy capital ratios(2) well above the regulatory thresholds for "well capitalized" banks, including an estimated 12.54% Tier 1 capital ratio and 10.18% CET 1 capital ratio.





(1)







Non-GAAP measure; refer to section 'Non-GAAP Measures'








(2)







Capital ratios for March 31, 2026 are preliminary







INCOME STATEMENT HIGHLIGHTS




 







Three Months Ended








 







March 31,






 






December 31,






 






March 31,








Summary Income Statement







2026






 






2025






 






2025








 







(In thousands)








Total interest income







$






407,442






 






 






$






416,948






 






 






$






406,655






 








Total interest expense







 






155,825






 






 






 






165,586






 






 






 






174,291






 








Net interest income







 






251,617






 






 






 






251,362






 






 






 






232,364






 








Provision for credit losses







 






9,800






 






 






 






12,500






 






 






 






9,300






 








Gain on sale of loans







 






7






 






 






 






18






 






 






 






211






 








Other noninterest income







 






35,321






 






 






 






41,553






 






 






 






33,439






 








Total noninterest income







 






35,328






 






 






 






41,571






 






 






 






33,650






 








Total revenue







 






286,945






 






 






 






292,933






 






 






 






266,014






 








Total noninterest expense







 






181,391






 






 






 






180,644






 






 






 






183,653






 








Earnings before income taxes







 






95,754






 






 






 






99,789






 






 






 






73,061






 








Income tax expense







 






23,802






 






 






 






22,398






 






 






 






19,493






 








Net earnings







 






71,952






 






 






 






77,391






 






 






 






53,568






 








Preferred stock dividends







 






9,947






 






 






 






9,947






 






 






 






9,947






 








Net earnings available to common and equivalent stockholders







$






62,005






 






 






$






67,444






 






 






$






43,621






 








 







 






 






 






 






 








Diluted earnings per share







$






0.39






 






 






$






0.42






 






 






$






0.26






 







Net Interest Income and Margin


First Quarter of 2026 Compared to Fourth Quarter of 2025


Net interest income increased by $0.3 million to $251.6 million for the first quarter, up from $251.4 million in the fourth quarter. This increase was primarily driven by a $9.7 million decrease in interest expense on deposits, reflecting lower interest rates due to the full quarter impact of the federal funds rate cuts of 50 basis points in the fourth quarter and two fewer days in the quarter. Additionally, interest income from investment securities rose by $2.3 million, supported by higher average balances from security purchases and a Federal Home Loan Bank (FHLB) special dividend. These positive factors were offset partially by a $9.3 million decrease in interest income from loans, mainly due to two fewer days in the quarter and lower average yields resulting from the federal funds rate cuts. Interest income from deposits in financial institutions also declined by $2.5 million, driven by lower average balances and interest rates.


Net interest margin was 3.24% for the first quarter, up 4 basis points from 3.20% for the fourth quarter primarily driven by lower average total cost of funds, offset partially by lower average yield on interest-earning assets. The average total cost of funds decreased to 2.10% from 2.20%, as a result of an 11 basis point decrease in the average total cost of deposits to 1.78%, and an 11 basis point decrease in the average cost of borrowings to 4.63%. The average yield on interest-earning assets decreased to 5.25% from 5.31%, as a result of a 9 basis point decrease in the average yield on loans and leases to 5.74%. Declines in both funding costs and asset yield reflect the full quarter impact of rate cuts that occurred in fourth quarter.


Average total deposits increased by $103.4 million, with a $81.2 million increase in average noninterest-bearing deposits and $22.2 million increase in average interest-bearing deposits. Average noninterest-bearing deposits represented 28.9% of average total deposits in the first quarter, up from 28.7% in the fourth quarter.




 







Three Months Ended






 






Increase (Decrease)








 







March 31, 2026






 






December 31, 2025






 






QoQ








Summary Average Balance and Yield/Cost Data







 






 






Interest






 






Average






 






 






 






Interest






 






Average






 






 






 






Average









Average






 






Income/






 






Yield/






 






Average






 






Income/






 






Yield/






 






Average






 






Yield/









Balance






 






Expense






 






Cost






 






Balance






 






Expense






 






Cost






 






Balance






 






Cost








 







(Dollars in thousands)








Assets:







 







 







 







 







 







 







 







 








Loans and leases(1)







$






24,710,609






 







$






349,943






 







5.74






%







$






24,443,089






 







$






359,268






 







5.83






%







$






267,520






 







(0.09






)%








Investment securities







 






5,018,002






 







 






41,873






 







3.38






%







 






4,891,281






 







 






39,557






 







3.21






%







 






126,721






 







0.17






%








Deposits in financial institutions







 






1,742,657






 







 






15,626






 







3.64






%







 






1,834,773






 







 






18,123






 







3.92






%







 






(92,116






)







(0.28






)%








Total interest-earning assets







$






31,471,268






 







$






407,442






 







5.25






%







$






31,169,143






 







$






416,948






 







5.31






%







$






302,125






 







(0.06






)%








 







 







 







 







 







 







 







 







 








Liabilities:







 







 







 







 







 







 







 







 








Noninterest-bearing demand deposits







$






7,890,489






 







 







 







$






7,809,326






 







 







 







$






81,163






 







 








Total interest-bearing deposits







 






19,429,112






 







$






120,233






 







2.51






%







 






19,406,865






 







$






129,896






 







2.66






%







 






22,247






 







(0.15






)%








Total deposits







$






27,319,601






 







 






120,233






 







1.78






%







$






27,216,191






 







 






129,896






 







1.89






%







$






103,410






 







(0.11






)%








 







 







 







 







 







 







 







 







 








Total interest-bearing liabilities







$






22,148,512






 







$






155,825






 







2.85






%







$






22,020,144






 







$






165,586






 







2.98






%







$






128,368






 







(0.13






)%








 







 







 







 







 







 







 







 







 








Net interest income(1)







 







$






251,617






 







 







 







$






251,362






 







 







 







 








Net interest margin







 







 







3.24






%







 







 







3.20






%







 







0.04






%








 







 







 







 







 







 







 







 







 








Total funds(2)







$






30,039,001






 







$






155,825






 







2.10






%







$






29,829,470






 







$






165,586






 







2.20






%







$






209,531






 







(0.10






)%








____________________



(1)







Includes net loan discount accretion of $12.2 million and $12.7 million for the three months ended March 31, 2026 and December 31, 2025, respectively.








(2)







Total funds is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of total funds is calculated as annualized total interest expense divided by average total funds.







Provision For Credit Losses


First Quarter of 2026 Compared to Fourth Quarter of 2025


The provision for credit losses was $9.8 million for the first quarter compared to $12.5 million for the fourth quarter.


The first quarter provision for loan losses and unfunded loan commitments was primarily driven by net charge off activity and changes in loan risk ratings including specific reserves, offset partially by lower balances in the held for investment ("HFI") portfolio and lower qualitative reserves.


The fourth quarter provision for loan losses and unfunded loan commitments was primarily driven by changes in loan risk ratings including specific reserves, and higher loan balances and unfunded commitments, offset partially by lower qualitative reserves.


Noninterest Income


First Quarter of 2026 Compared to Fourth Quarter of 2025


Noninterest income decreased by $6.2 million to $35.3 million for the first quarter from $41.6 million for the fourth quarter due mainly to a $7.9 million decrease in leased equipment income, offset partially by the increase of $1.5 million in commission and fees and $1.1 million in other income. The decrease in leased equipment income was due mainly to higher gains on early lease terminations in the fourth quarter.


Noninterest Expense


First Quarter of 2026 Compared to Fourth Quarter of 2025


Noninterest expense increased by $0.7 million to $181.4 million for the first quarter from $180.6 million for the fourth quarter due mainly to a $5.2 million increase in compensation expense, offset partially by the decrease of $2.5 million in other professional services and $1.1 million in customer related expense. The increase in compensation expense was mainly driven by seasonality, reflecting higher incentive compensation and annual reset of payroll related taxes and benefits in the first quarter. The decline in other professional services was driven by lower project spend, while customer related expenses decreased due to lower earnings credit rate payments following the federal funds rate cuts in the fourth quarter.


Income Taxes


First Quarter of 2026 Compared to Fourth Quarter of 2025


Income tax expense of $23.8 million was recorded for the first quarter resulting in an effective tax rate of 24.9% compared to income tax expense of $22.4 million and an effective tax rate of 22.4% for the fourth quarter.


BALANCE SHEET HIGHLIGHTS




 







March 31,






 






December 31,






 






March 31,






 






Increase (Decrease)








Selected Balance Sheet Items







2026






 






2025






 






2025






 






QoQ






 






YoY








 







(In thousands)








Cash and cash equivalents







$






2,217,269






 






 






$






2,307,965






 






 






$






2,343,889






 






 






$






(90,696






)






 






$






(126,620






)








Securities available-for-sale







 






2,656,332






 






 






 






2,454,058






 






 






 






2,334,058






 






 






 






202,274






 






 






 






322,274






 








Securities held-to-maturity







 






2,313,548






 






 






 






2,308,636






 






 






 






2,311,912






 






 






 






4,912






 






 






 






1,636






 








Loans held for sale







 






259,049






 






 






 






182,936






 






 






 






25,797






 






 






 






76,113






 






 






 






233,252






 








Loans and leases held for investment







 






24,780,347






 






 






 






25,032,679






 






 






 






24,126,527






 






 






 






(252,332






)






 






 






653,820






 








Total loans and leases







 






25,039,396






 






 






 






25,215,615






 






 






 






24,152,324






 






 






 






(176,219






)






 






 






887,072






 








Total assets







 






34,724,241






 






 






 






34,797,442






 






 






 






33,779,918






 






 






 






(73,201






)






 






 






944,323






 








 







 






 






 






 






 






 






 






 






 








Noninterest-bearing deposits







$






7,797,542






 






 






$






7,822,787






 






 






$






7,593,950






 






 






$






(25,245






)






 






$






203,592






 








Total deposits







 






27,322,134






 






 






 






27,843,357






 






 






 






27,193,191






 






 






 






(521,223






)






 






 






128,943






 








Borrowings







 






2,551,250






 






 






 






2,063,819






 






 






 






1,670,782






 






 






 






487,431






 






 






 






880,468






 








Total liabilities







 






31,170,915






 






 






 






31,256,165






 






 






 






30,258,262






 






 






 






(85,250






)






 






 






912,653






 








Total stockholders' equity







 






3,553,326






 






 






 






3,541,277






 






 






 






3,521,656






 






 






 






12,049






 






 






 






31,670






 







Securities


Securities available-for-sale ("AFS") increased by $202.3 million during the first quarter to $2.7 billion at March 31, 2026. The increase was primarily driven by $343.4 million of purchases, offset partially by $119.8 million of principal paydowns, $10.8 million of maturities, $9.2 million decrease in the fair value of AFS securities, and $1.3 million of net amortization. As of March 31, 2026, AFS securities had aggregate unrealized net after-tax losses in accumulated other comprehensive income (loss) ("AOCI") of $143.3 million, up from $136.6 million at December 31, 2025, driven by higher interest rates.


The balance of securities held-to-maturity ("HTM") increased by $4.9 million in the first quarter to $2.3 billion at March 31, 2026. As of March 31, 2026, HTM securities had aggregate unrealized net after-tax losses in AOCI of $127.2 million remaining from the balance established at the time of transfer from AFS.


Loans and Leases


The following table sets forth the composition, by loan category, of our loan and lease portfolio HFI as of the dates indicated:




 







March 31,






 






December 31,






 






September 30,






 






June 30,






 






March 31,








 







2026






 






2025






 






2025






 






2025






 






2025








 







(Dollars in thousands)








Composition of Loans and Leases







 






 






 






 






 






 






 






 






 








Real estate mortgage:







 






 






 






 






 






 






 






 






 








Commercial







$






4,093,386






 






 






$






4,314,637






 






 






$






4,292,625






 






 






$






4,369,401






 






 






$






4,489,543






 








Multi-family







 






5,955,102






 






 






 






6,089,417






 






 






 






6,124,673






 






 






 






6,280,791






 






 






 






6,216,084






 








Other residential







 






3,458,410






 






 






 






3,346,733






 






 






 






3,162,564






 






 






 






3,157,616






 






 






 






2,787,031






 








Total real estate mortgage







 






13,506,898






 






 






 






13,750,787






 






 






 






13,579,862






 






 






 






13,807,808






 






 






 






13,492,658






 








Real estate construction and land:







 






 






 






 






 






 






 






 






 








Commercial







 






364,575






 






 






 






379,387






 






 






 






395,150






 






 






 






381,449






 






 






 






733,684






 








Residential







 






1,527,754






 






 






 






1,568,240






 






 






 






1,759,676






 






 






 






1,920,642






 






 






 






2,127,354






 








Total real estate construction and land







 






1,892,329






 






 






 






1,947,627






 






 






 






2,154,826






 






 






 






2,302,091






 






 






 






2,861,038






 








Total real estate







 






15,399,227






 






 






 






15,698,414






 






 






 






15,734,688






 






 






 






16,109,899






 






 






 






16,353,696






 








Commercial:







 






 






 






 






 






 






 






 






 








Asset-based







 






3,209,338






 






 






 






2,951,010






 






 






 






2,742,519






 






 






 






2,462,351






 






 






 






2,305,325






 








Venture capital







 






2,322,261






 






 






 






2,222,097






 






 






 






1,907,601






 






 






 






2,002,601






 






 






 






1,733,074






 








Other commercial







 






3,501,388






 






 






 






3,804,099






 






 






 






3,356,537






 






 






 






3,288,305






 






 






 






3,340,400






 








Total commercial







 






9,032,987






 






 






 






8,977,206






 






 






 






8,006,657






 






 






 






7,753,257






 






 






 






7,378,799






 








Consumer







 






348,133






 






 






 






357,059






 






 






 






369,297






 






 






 






382,737






 






 






 






394,032






 








Total loans and leases HFI







$






24,780,347






 






 






$






25,032,679






 






 






$






24,110,642






 






 






$






24,245,893






 






 






$






24,126,527






 








 







 






 






 






 






 






 






 






 






 








Total unfunded loan commitments







$






5,549,325






 






 






$






5,433,357






 






 






$






4,822,917






 






 






$






4,673,596






 






 






$






4,858,960






 








 







 






 






 






 






 






 






 






 






 








Composition as % of Total Loans and Leases







 






 






 






 






 






 






 






 






 








Real estate mortgage:







 






 






 






 






 






 






 






 






 








Commercial







 






17






%






 






 






17






%






 






 






18






%






 






 






18






%






 






 






19






%








Multi-family







 






24






%






 






 






24






%






 






 






25






%






 






 






26






%






 






 






26






%








Other residential







 






14






%






 






 






14






%






 






 






13






%






 






 






13






%






 






 






11






%








Total real estate mortgage







 






55






%






 






 






55






%






 






 






56






%






 






 






57






%






 






 






56






%








Real estate construction and land:







 






 






 






 






 






 






 






 






 








Commercial







 






2






%






 






 






2






%






 






 






2






%






 






 






1






%






 






 






3






%








Residential







 






6






%






 






 






6






%






 






 






7






%






 






 






8






%






 






 






9






%








Total real estate construction and land







 






8






%






 






 






8






%






 






 






9






%






 






 






9






%






 






 






12






%








Total real estate







 






63






%






 






 






63






%






 






 






65






%






 






 






66






%






 






 






68






%








Commercial:







 






 






 






 






 






 






 






 






 








Asset-based







 






13






%






 






 






12






%






 






 






11






%






 






 






10






%






 






 






9






%








Venture capital







 






9






%






 






 






9






%






 






 






8






%






 






 






8






%






 






 






7






%








Other commercial







 






14






%






 






 






15






%






 






 






14






%






 






 






14






%






 






 






14






%








Total commercial







 






36






%






 






 






36






%






 






 






33






%






 






 






32






%






 






 






30






%








Consumer







 






1






%






 






 






1






%






 






 






2






%






 






 






2






%






 






 






2






%








Total loans and leases HFI







 






100






%






 






 






100






%






 






 






100






%






 






 






100






%






 






 






100






%







Total loans and leases HFI decreased by $252.3 million in the first quarter and totaled $24.8 billion at March 31, 2026. The decrease in loans and leases HFI was due primarily to decreased balances in other commercial loans, commercial real estate mortgage loans, and multi-family real estate mortgage loans, offset partially by increases in asset-based loans, other residential real mortgage loans, and venture capital loans. Loan production and disbursements totaled $2.1 billion in the first quarter with a weighted average interest rate on production of 6.65%.


Total loans and leases held for sale ("HFS") increased by $76.1 million in the first quarter and totaled $259.0 million at March 31, 2026. The increase in loans HFS was primarily driven by a $72.1 million loan transfer during the first quarter that subsequently sold at par in April 2026.


Credit Quality




 







March 31,






 






December 31,






 






September 30,






 






June 30,






 






March 31,








Asset Quality Information and Ratios







2026






 






2025






 






2025






 






2025






 






2025








 







(Dollars in thousands)








Delinquent loans and leases held for investment:







 






 






 






 






 






 






 






 






 








30 to 89 days delinquent







$






263,530






 






 






$






108,303






 






 






$






56,416






 






 






$






53,900






 






 






$






100,664






 








90+ days delinquent







 






81,599






 






 






 






92,655






 






 






 






104,952






 






 






 






95,566






 






 






 






99,976






 








Total delinquent loans and leases







$






345,129






 






 






$






200,958






 






 






$






161,368






 






 






$






149,466






 






 






$






200,640






 








 







 






 






 






 






 






 






 






 






 








Total delinquent loans and leases to loans and leases HFI







 






1.39






%






 






 






0.80






%






 






 






0.67






%






 






 






0.62






%






 






 






0.83






%








 







 






 






 






 






 






 






 






 






 








Nonperforming assets, excluding loans held for sale:







 






 






 






 






 






 






 






 






 








Nonaccrual loans and leases







$






185,734






 






 






$






159,168






 






 






$






174,541






 






 






$






167,516






 






 






$






213,480






 








90+ days delinquent loans and still accruing







 






—






 






 






 






—






 






 






 






—






 






 






 






—






 






 






 






—






 








Total nonperforming loans and leases ("NPLs")







 






185,734






 






 






 






159,168






 






 






 






174,541






 






 






 






167,516






 






 






 






213,480






 








Foreclosed assets, net







 






18,055






 






 






 






17,115






 






 






 






4,790






 






 






 






7,806






 






 






 






5,474






 








Total nonperforming assets ("NPAs")







$






203,789






 






 






$






176,283






 






 






$






179,331






 






 






$






175,322






 






 






$






218,954






 








 







 






 






 






 






 






 






 






 






 








Classified loans and leases HFI







$






842,834






 






 






$






800,330






 






 






$






763,582






 






 






$






656,556






 






 






$






764,723






 








Special mention loans and leases HFI







 






688,659






 






 






 






458,683






 






 






 






505,979






 






 






 






661,568






 






 






 






937,014






 








Criticized loans and leases HFI







$






1,531,493






 






 






$






1,259,013






 






 






$






1,269,561






 






 






$






1,318,124






 






 






$






1,701,737






 








 







 






 






 






 






 






 






 






 






 








Allowance for loan and lease losses







$






241,600






 






 






$






245,612






 






 






$






240,501






 






 






$






229,344






 






 






$






234,986






 








Allowance for loan and lease losses to NPLs







 






130.08






%






 






 






154.31






%






 






 






137.79






%






 






 






136.91






%






 






 






110.07






%








NPLs to loans and leases HFI







 






0.75






%






 






 






0.64






%






 






 






0.72






%






 






 






0.69






%






 






 






0.88






%








NPAs to total assets







 






0.59






%






 






 






0.51






%






 






 






0.53






%






 






 






0.51






%






 






 






0.65






%








Classified loans and leases to loans and leases HFI







 






3.40






%






 






 






3.20






%






 






 






3.17






%






 






 






2.71






%






 






 






3.17






%








Special mention loans and leases to loans and leases HFI







 






2.78






%






 






 






1.83






%






 






 






2.10






%






 






 






2.73






%






 






 






3.88






%







Asset quality metrics primarily reflect migration in a limited number of loans within a few larger relationships during the quarter. These were largely isolated situations, reflect proactive risk management actions, and the credits are supported by strong collateral and defined resolution paths.


At March 31, 2026, total delinquent loans and leases were $345.1 million, compared to $201.0 million at December 31, 2025. The 30 to 89 days delinquent category increased by $114.1 million in residential real estate construction and land loans, $32.9 million in commercial real estate construction and land loans, and $7.0 million in other residential real estate mortgage loans. In the 90 or more days delinquent category, there were decreases of $5.4 million in commercial real estate mortgage loans and $5.3 million in other residential real estate mortgage loans.


At March 31, 2026, nonperforming loans and leases were $185.7 million, compared to $159.2 million at December 31, 2025. During the first quarter, nonperforming loans and leases increased by $26.6 million due to additions of $54.6 million, offset partially by payoffs and paydowns of $20.0 million, charge-offs of $5.2 million, and transfers to accrual status of $2.8 million.


At March 31, 2026, nonperforming assets were $203.8 million, or 0.59% of total assets, compared to $176.3 million, or 0.51% of total assets, as of December 31, 2025. At March 31, 2026, nonperforming assets included $18.1 million of foreclosed assets, consisting primarily of single-family residences.


Allowance for Credit Losses – Loans




 







Three Months Ended








 







March 31,






 






December 31,






 






March 31,








Allowance for Credit Losses - Loans







2026






 






2025






 






2025








 







(Dollars in thousands)








Allowance for loan and lease losses ("ALLL"):







 






 






 






 






 








Balance at beginning of period







$






245,612






 






 






$






240,501






 






 






$






239,360






 








Charge-offs







 






(16,097






)






 






 






(5,541






)






 






 






(16,551






)








Recoveries







 






2,285






 






 






 






2,852






 






 






 






2,477






 








Net charge-offs







 






(13,812






)






 






 






(2,689






)






 






 






(14,074






)








Provision for loan losses







 






9,800






 






 






 






7,800






 






 






 






9,700






 








Balance at end of period







$






241,600






 






 






$






245,612






 






 






$






234,986






 








 







 






 






 






 






 








Reserve for unfunded loan commitments ("RUC"):







 






 






 






 






 








Balance at beginning of period







$






34,921






 






 






$






30,221






 






 






$






29,071






 








Provision for credit losses







 






—






 






 






 






4,700






 






 






 






500






 








Balance at end of period







$






34,921






 






 






$






34,921






 






 






$






29,571






 








 







 






 






 






 






 








Allowance for credit losses ("ACL") - Loans:







 






 






 






 






 








Balance at beginning of period







$






280,533






 






 






$






270,722






 






 






$






268,431






 








Charge-offs







 






(16,097






)






 






 






(5,541






)






 






 






(16,551






)








Recoveries







 






2,285






 






 






 






2,852






 






 






 






2,477






 








Net charge-offs







 






(13,812






)






 






 






(2,689






)






 






 






(14,074






)








Provision for credit losses







 






9,800






 






 






 






12,500






 






 






 






10,200






 








Balance at end of period







$






276,521






 






 






$






280,533






 






 






$






264,557






 








 







 






 






 






 






 








ALLL to loans and leases HFI







 






0.97






%






 






 






0.98






%






 






 






0.97






%








ACL to loans and leases HFI







 






1.12






%






 






 






1.12






%






 






 






1.10






%








ACL to NPLs







 






148.88






%






 






 






176.25






%






 






 






123.93






%








ACL to NPAs







 






135.69






%






 






 






159.14






%






 






 






120.83






%








Annualized net charge-offs to average loans and leases







 






0.23






%






 






 






0.04






%






 






 






0.24






%







The allowance for credit losses - loans, which includes the reserve for unfunded loan commitments, totaled $276.5 million, or 1.12% of total loans and leases at March 31, 2026, compared to $280.5 million, or 1.12% of total loans and leases at December 31, 2025. The $4.0 million decrease in the allowance was driven by net charge-offs of $13.8 million, offset partially by the provision of $9.8 million.


Our ability to absorb credit losses is also bolstered by (i) $105.0 million of loss coverage from the credit-linked notes, pursuant to which the bank sold the first 5% of any losses on $2.1 billion of single-family residential mortgage loans in our portfolio; and (ii) unearned credit marks of $14.3 million on approximately $1.2 billion of purchased loans without credit deterioration. When the loss coverage from the credit-linked notes and unearned credit marks is added to our allowance for credit losses, this provides additional economic coverage on top of our ACL ratio. We refer to this adjusted ACL ratio as our economic coverage ratio(1), which equaled 1.60% of total loans and leases at March 31, 2026 compared to 1.62% at December 31, 2025.


The ACL coverage of nonperforming loans and leases was 149% at March 31, 2026 compared to 176% at December 31, 2025.


Net charge-offs were 0.23% of average loans and leases (annualized) for the first quarter, compared to net charge-offs of 0.04% for the fourth quarter.




(1)







Non-GAAP measure; refer to section 'Non-GAAP Measures'







Deposits and Client Investment Funds


The following table sets forth the composition of our deposits at the dates indicated:




 







March 31,






 






December 31,






 






September 30,






 






June 30,






 






March 31,








 







2026






 






2025






 






2025






 






2025






 






2025








 







(Dollars in thousands)








Composition of Deposits







 






 






 






 






 






 






 






 






 








Noninterest-bearing checking







$






7,797,542






 






 






$






7,822,787






 






 






$






7,603,748






 






 






$






7,441,116






 






 






$






7,593,950






 








Interest-bearing:







 






 






 






 






 






 






 






 






 








Checking







 






8,178,485






 






 






 






8,509,587






 






 






 






7,930,951






 






 






 






7,974,452






 






 






 






7,747,051






 








Money market







 






4,643,349






 






 






 






4,917,857






 






 






 






4,974,177






 






 






 






5,375,080






 






 






 






5,367,788






 








Savings







 






1,991,010






 






 






 






1,905,863






 






 






 






1,949,369






 






 






 






1,932,906






 






 






 






1,999,062






 








Time deposits:







 






 






 






 






 






 






 






 






 








Non-brokered







 






2,149,564






 






 






 






2,254,293






 






 






 






2,468,017






 






 






 






2,492,890






 






 






 






2,490,639






 








Brokered







 






2,562,184






 






 






 






2,432,970






 






 






 






2,258,503






 






 






 






2,311,989






 






 






 






1,994,701






 








Total time deposits







 






4,711,748






 






 






 






4,687,263






 






 






 






4,726,520






 






 






 






4,804,879






 






 






 






4,485,340






 








Total interest-bearing







 






19,524,592






 






 






 






20,020,570






 






 






 






19,581,017






 






 






 






20,087,317






 






 






 






19,599,241






 








Total deposits







$






27,322,134






 






 






$






27,843,357






 






 






$






27,184,765






 






 






$






27,528,433






 






 






$






27,193,191






 








 







 






 






 






 






 






 






 






 






 








Composition as % of







 






 






 






 






 






 






 






 






 








Total Deposits







 






 






 






 






 






 






 






 






 








Noninterest-bearing checking







 






29






%






 






 






28






%






 






 






28






%






 






 






27






%






 






 






28






%








Interest-bearing:







 






 






 






 






 






 






 






 






 








Checking







 






30






%






 






 






30






%






 






 






29






%






 






 






29






%






 






 






29






%








Money market







 






17






%






 






 






18






%






 






 






19






%






 






 






20






%






 






 






20






%








Savings







 






7






%






 






 






7






%






 






 






7






%






 






 






7






%






 






 






7






%








Time deposits:







 






 






 






 






 






 






 






 






 








Non-brokered







 






8






%






 






 






8






%






 






 






9






%






 






 






9






%






 






 






9






%








Brokered







 






9






%






 






 






9






%






 






 






8






%






 






 






8






%






 






 






7






%








Total time deposits







 






17






%






 






 






17






%






 






 






17






%






 






 






17






%






 






 






16






%








Total interest-bearing







 






71






%






 






 






72






%






 






 






72






%






 






 






73






%






 






 






72






%








Total deposits







 






100






%






 






 






100






%






 






 






100






%






 






 






100






%






 






 






100






%







Total deposits decreased by $521.2 million to $27.3 billion at March 31, 2026 from $27.8 billion at December 31, 2025, driven by a decrease in interest-bearing deposits of $496.0 million and a decrease in noninterest-bearing deposits of $25.2 million. Interest-bearing deposits decreased due mainly to lower balances in checking accounts of $331.1 million and lower money market accounts of $274.5 million, offset partially by higher savings accounts of $85.1 million and higher brokered and non-brokered time deposits of $24.5 million.


At March 31, 2026, noninterest-bearing checking deposits totaled $7.8 billion, or 29% of total deposits, compared to $7.8 billion, or 28% of total deposits, at December 31, 2025.


At March 31, 2026, uninsured and uncollateralized deposits totaled $7.8 billion, or 28% of total deposits, compared to $7.7 billion, or 28% of total deposits, at December 31, 2025.


In addition to deposit products, we also offer alternative, non-depository corporate treasury solutions for select clients to invest excess liquidity. These off-balance sheet client funds totaled $1.2 billion as of March 31, 2026 and December 31, 2025.


Borrowings


Borrowings increased by $487.4 million to $2.6 billion at March 31, 2026 from $2.1 billion at December 31, 2025, mainly due to higher overnight and short-term borrowings.


Equity


During the first quarter, total stockholders’ equity increased by $12.0 million to $3.6 billion and tangible common equity(1) increased by $18.2 million to $2.7 billion at March 31, 2026. The increase in total stockholders’ equity for the first quarter resulted primarily from net earnings of $72.0 million, offset partially by the repurchase of common stock of $31.9 million and common and preferred stock dividends of $29.1 million.


At March 31, 2026, book value per common share increased to $19.80 compared to $19.56 at December 31, 2025, and tangible book value per common share(1) increased to $17.77 compared to $17.51 at December 31, 2025.


For the three-month period ended March 31, 2026, the Company repurchased 1,709,935 shares of common and common equivalent stock at a weighted average price per share of $18.68, or $31.9 million in the aggregate. As of March 31, 2026, $82.6 million remained available under the current stock repurchase authorization, which expires in March 2027.




(1)







Non-GAAP measure; refer to section 'Non-GAAP Measures'







CAPITAL AND LIQUIDITY


The following table sets forth our regulatory capital ratios as of the dates indicated:




 







March 31,






 






December 31,






 






September 30,






 






June 30,






 






March 31,








 







2026






 






2025






 






2025






 






2025






 






2025








Capital Ratios(1)







 






 






 






 






 






 






 






 






 








Banc of California, Inc.







 






 






 






 






 






 






 






 






 








Total risk-based capital ratio







16.55






%






 






16.31






%






 






16.69






%






 






16.37






%






 






16.93






%








Tier 1 risk-based capital ratio







12.54






%






 






12.34






%






 






12.56






%






 






12.34






%






 






12.86






%








Common equity tier 1 capital ratio







10.18






%






 






10.01






%






 






10.14






%






 






9.95






%






 






10.45






%








Tier 1 leverage ratio







9.97






%






 






9.99






%






 






9.77






%






 






9.74






%






 






10.19






%








 







 






 






 






 






 






 






 






 






 








Banc of California







 






 






 






 






 






 






 






 






 








Total risk-based capital ratio







15.97






%






 






15.61






%






 






15.94






%






 






15.65






%






 






16.22






%








Tier 1 risk-based capital ratio







13.50






%






 






13.15






%






 






13.42






%






 






13.21






%






 






13.74






%








Common equity tier 1 capital ratio







13.50






%






 






13.15






%






 






13.42






%






 






13.21






%






 






13.74






%








Tier 1 leverage ratio







10.73






%






 






10.65






%






 






10.44






%






 






10.42






%






 






10.88






%








____________________



(1)







March 31, 2026 capital ratios are preliminary.







At March 31, 2026, cash and cash equivalents totaled $2.2 billion, down $90.7 million from December 31, 2025.


Our immediately available cash and cash equivalents (excluding restricted cash) were $2.0 billion. Combined with total available borrowing capacity of $9.7 billion and unpledged AFS securities of $2.5 billion, total available liquidity was $14.2 billion at the end of the first quarter.


Conference Call


The Company will host a conference call to discuss its first quarter 2026 financial results at 10:00 a.m. Pacific Time (PT) on Thursday, April 23, 2026. Interested parties are welcome to attend the conference call by dialing (888) 317-6003 and referencing event code 5670833. A live audio webcast will also be available, and the webcast link will be posted on the Company’s Investor Relations website at www.bancofcal.com/investor. The slide presentation for the call will also be available on the Company's Investor Relations website prior to the call. A replay of the call will be made available approximately one hour after the call has ended on the Company’s Investor Relations website at www.bancofcal.com/investor or by dialing (855) 669-9658 and referencing event code 7930561.


About Banc of California, Inc.


Banc of California, Inc. (NYSE: BANC) is a bank holding company with over $34 billion in assets and the parent company of Banc of California. Banc of California is one of the nation’s premier relationship-based business banks, providing banking and treasury management services to small-, middle-market, and venture-backed businesses. Banc of California is the largest independent bank headquartered in Los Angeles and the third largest bank headquartered in California and offers a broad range of loan and deposit products and services through 79 full-service branches located throughout California and in Denver, Colorado, and Durham, North Carolina, as well as through regional offices nationwide. The bank also provides full-service payment processing solutions to its clients and serves the Community Association Management industry nationwide with its technology-forward platform, SmartStreet™. The bank is committed to its local communities through the Banc of California Charitable Foundation, and by supporting organizations that provide financial literacy and job training, small business support, affordable housing, and more. Member FDIC. For more information, please visit us at www.bancofcal.com.


Forward-Looking Statements


This press release 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 regarding the performance of our business, liquidity and capital ratios and other non-historical statements. Words or phrases such as “believe,” “will,” “should,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” “strategy,” or similar expressions are intended to identify these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by the Company with the Securities and Exchange Commission ("SEC"). The Company undertakes no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, except as required by law.


Factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to: (i) changes in general economic conditions, either nationally or in our market areas, including the impact of tariffs, supply chain disruptions, and the risk of recession or an economic downturn; (ii) changes in the interest rate environment, including the recent and potential future changes in the FRB benchmark rate, which could adversely affect our revenue and expenses, the value of assets and obligations, the realization of deferred tax assets, the availability and cost of capital and liquidity, and the impacts of continuing or renewed inflation; (iii) the credit risks of lending activities, which may be affected by deterioration in real estate markets and the financial condition of borrowers, and the operational risk of lending activities, including the effectiveness of our underwriting practices and the risk of fraud, any of which may lead to increased loan delinquencies, losses, and non-performing assets, and may result in our allowance for credit losses not being adequate; (iv) fluctuations in the demand for loans, and fluctuations in commercial and residential real estate values in our market area; (v) the quality and composition of our securities portfolio; (vi) our ability to develop and maintain a strong core deposit base, including among our venture banking clients, or other low cost funding sources necessary to fund our activities particularly in a rising or high interest rate environment; (vii) the rapid withdrawal of a significant amount of demand deposits over a short period of time; (viii) the costs and effects of litigation; (ix) risks related to the Company’s acquisitions, including disruption to current plans and operations; difficulties in customer and employee retention; fees, expenses and charges related to these transactions being significantly higher than anticipated; and our inability to achieve expected revenues, cost savings, synergies, and other benefits; (x) results of examinations by regulatory authorities of the Company and the possibility that any such regulatory authority may, among other things, limit our business activities, restrict our ability to invest in certain assets, refrain from issuing an approval or non-objection to certain capital or other actions, increase our allowance for credit losses, result in write-downs of asset values, restrict our ability or that of our bank subsidiary to pay dividends, or impose fines, penalties or sanctions; (xi) legislative or regulatory changes that adversely affect our business, including changes in tax laws and policies, accounting policies and practices, privacy laws, and regulatory capital or other rules; (xii) the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses; (xiii) errors in estimates of the fair values of certain of our assets and liabilities, as well as the value of collateral supporting our loans, which may result in significant changes in valuation or recoveries; (xiv) failures or security breaches with respect to the network, applications, vendors and computer systems on which we depend, including due to cybersecurity threats; (xv) our ability to attract and retain key members of our senior management team; (xvi) the effects of climate change, severe weather events, natural disasters such as earthquakes and wildfires, pandemics, epidemics and other public health crises, military activity (including the ongoing Iran war) or acts of terrorism, and other external events on our business; (xvii) the impact of bank failures or other adverse developments at other banks on general depositor and investor sentiment regarding the stability and liquidity of banks; (xviii) the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; (xix) our existing indebtedness, together with any future incurrence of additional indebtedness, could adversely affect our ability to raise additional capital and to meet our debt obligations; (xx) changes in market conditions or strategic balance sheet actions, which may result in realized losses on investment securities or other assets; and (xxi) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and from time to time in other documents that we file with or furnish to the SEC.


Non-GAAP Financial Measures


Included in this press release are certain non-GAAP financial measures, such as tangible common equity, tangible book value per common share, return on average tangible common equity, pre-tax pre-provision income, efficiency ratio, and economic coverage ratio, designed to complement the financial information presented in accordance with U.S. GAAP because management believes such measures are useful to investors. These non-GAAP financial measures should be considered only as supplemental to, and not superior to, financial measures provided in accordance with GAAP. Please refer to the “Non-GAAP Measures” section of this release for additional detail including reconciliations of the non-GAAP financial measures included in this press release to the most directly comparable financial measures prepared in accordance with GAAP.



BANC OF CALIFORNIA, INC.



CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)








 







 






 






 






 






 






 






 






 






 








 







March 31,






 






December 31,






 






September 30,






 






June 30,






 






March 31,








 







2026






 






2025






 






2025






 






2025






 






2025








ASSETS:







(Dollars in thousands)








Cash and due from banks







$






214,120






 






 






$






181,103






 






 






$






205,364






 






 






$






222,210






 






 






$






215,591






 








Interest-earning deposits in financial institutions







 






2,003,149






 






 






 






2,126,862






 






 






 






2,192,901






 






 






 






2,131,342






 






 






 






2,128,298






 








Total cash and cash equivalents







 






2,217,269






 






 






 






2,307,965






 






 






 






2,398,265






 






 






 






2,353,552






 






 






 






2,343,889






 








 







 






 






 






 






 






 






 






 






 








Securities available-for-sale







 






2,656,332






 






 






 






2,454,058






 






 






 






2,426,734






 






 






 






2,246,174






 






 






 






2,334,058






 








Securities held-to-maturity







 






2,313,548






 






 






 






2,308,636






 






 






 






2,303,657






 






 






 






2,316,725






 






 






 






2,311,912






 








FRB and FHLB stock







 






170,342






 






 






 






160,442






 






 






 






159,337






 






 






 






162,243






 






 






 






155,330






 








Total investment securities







 






5,140,222






 






 






 






4,923,136






 






 






 






4,889,728






 






 






 






4,725,142






 






 






 






4,801,300






 








 







 






 






 






 






 






 






 






 






 








Loans held for sale







 






259,049






 






 






 






182,936






 






 






 






211,454






 






 






 






465,571






 






 






 






25,797






 








 







 






 






 






 






 






 






 






 






 








Loans and leases held for investment







 






24,780,347






 






 






 






25,032,679






 






 






 






24,110,642






 






 






 






24,245,893






 






 






 






24,126,527






 








Allowance for loan and lease losses







 






(241,600






)






 






 






(245,612






)






 






 






(240,501






)






 






 






(229,344






)






 






 






(234,986






)








Total loans and leases held for investment, net







 






24,538,747






 






 






 






24,787,067






 






 






 






23,870,141






 






 






 






24,016,549






 






 






 






23,891,541






 








 







 






 






 






 






 






 






 






 






 








Equipment leased to others under operating leases







 






223,558






 






 






 






238,232






 






 






 






280,872






 






 






 






288,692






 






 






 






295,032






 








Premises and equipment, net







 






146,316






 






 






 






146,698






 






 






 






132,766






 






 






 






138,032






 






 






 






140,347






 








Bank owned life insurance







 






352,707






 






 






 






350,083






 






 






 






348,051






 






 






 






346,142






 






 






 






342,810






 








Goodwill







 






214,521






 






 






 






214,521






 






 






 






214,521






 






 






 






214,521






 






 






 






214,521






 








Intangible assets, net







 






99,091






 






 






 






105,287






 






 






 






111,923






 






 






 






118,930






 






 






 






125,937






 








Deferred tax asset, net







 






653,481






 






 






 






656,755






 






 






 






672,159






 






 






 






691,535






 






 






 






702,323






 








Other assets







 






879,280






 






 






 






884,762






 






 






 






883,085






 






 






 






891,787






 






 






 






896,421






 








Total assets







$






34,724,241






 






 






$






34,797,442






 






 






$






34,012,965






 






 






$






34,250,453






 






 






$






33,779,918






 








 







 






 






 






 






 






 






 






 






 








LIABILITIES:







 






 






 






 






 






 






 






 






 








Noninterest-bearing deposits







$






7,797,542






 






 






$






7,822,787






 






 






$






7,603,748






 






 






$






7,441,116






 






 






$






7,593,950






 








Interest-bearing deposits







 






19,524,592






 






 






 






20,020,570






 






 






 






19,581,017






 






 






 






20,087,317






 






 






 






19,599,241






 








Total deposits







 






27,322,134






 






 






 






27,843,357






 






 






 






27,184,765






 






 






 






27,528,433






 






 






 






27,193,191






 








Borrowings







 






2,551,250






 






 






 






2,063,819






 






 






 






2,005,022






 






 






 






1,917,180






 






 






 






1,670,782






 








Subordinated debt







 






954,072






 






 






 






952,740






 






 






 






950,888






 






 






 






949,213






 






 






 






944,908






 








Accrued interest payable and other liabilities







 






343,459






 






 






 






396,249






 






 






 






405,551






 






 






 






428,784






 






 






 






449,381






 








Total liabilities







 






31,170,915






 






 






 






31,256,165






 






 






 






30,546,226






 






 






 






30,823,610






 






 






 






30,258,262






 








 







 






 






 






 






 






 






 






 






 








STOCKHOLDERS' EQUITY:







 






 






 






 






 






 






 






 






 








Preferred stock







 






498,516






 






 






 






498,516






 






 






 






498,516






 






 






 






498,516






 






 






 






498,516






 








Common stock







 






1,538






 






 






 






1,500






 






 






 






1,509






 






 






 






1,474






 






 






 






1,561






 








Class B non-voting common stock







 






5






 






 






 






5






 






 






 






5






 






 






 






5






 






 






 






5






 








Non-voting common stock equivalents







 






—






 






 






 






50






 






 






 






41






 






 






 






98






 






 






 






98






 








Additional paid-in-capital







 






3,501,213






 






 






 






3,552,483






 






 






 






3,563,145






 






 






 






3,609,109






 






 






 






3,732,376






 








Retained deficit







 






(180,011






)






 






 






(242,016






)






 






 






(309,460






)






 






 






(369,142






)






 






 






(387,580






)








Accumulated other comprehensive loss, net







 






(267,935






)






 






 






(269,261






)






 






 






(287,017






)






 






 






(313,217






)






 






 






(323,320






)








Total stockholders’ equity







 






3,553,326






 






 






 






3,541,277






 






 






 






3,466,739






 






 






 






3,426,843






 






 






 






3,521,656






 








Total liabilities and stockholders’ equity







$






34,724,241






 






 






$






34,797,442






 






 






$






34,012,965






 






 






$






34,250,453






 






 






$






33,779,918






 








 







 






 






 






 






 






 






 






 






 








Common shares outstanding (1)







 






154,262,045






 






 






 






155,533,403






 






 






 






155,522,693






 






 






 






157,647,137






 






 






 






166,403,086






 








____________________



(1)







Common shares outstanding include non-voting common stock equivalents that are participating securities. There were no non-voting common stock equivalents outstanding as of March 31, 2026.









BANC OF CALIFORNIA, INC.








CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)









 



 







Three Months Ended








 







March 31,






 






December 31,






 






March 31,








 







2026






 






2025






 






2025








 







(In thousands, except per share amounts)








Interest income:







 






 






 






 






 








Loans and leases







$






349,943






 






 






$






359,268






 






 






$






346,103






 








Investment securities







 






41,873






 






 






 






39,557






 






 






 






37,862






 








Deposits in financial institutions







 






15,626






 






 






 






18,123






 






 






 






22,690






 








Total interest income







 






407,442






 






 






 






416,948






 






 






 






406,655






 








Interest expense:







 






 






 






 






 








Deposits







 






120,233






 






 






 






129,896






 






 






 






140,530






 








Borrowings







 






20,177






 






 






 






19,858






 






 






 






18,421






 








Subordinated debt







 






15,415






 






 






 






15,832






 






 






 






15,340






 








Total interest expense







 






155,825






 






 






 






165,586






 






 






 






174,291






 








Net interest income







 






251,617






 






 






 






251,362






 






 






 






232,364






 








Provision for credit losses







 






9,800






 






 






 






12,500






 






 






 






9,300






 








Net interest income after provision for credit losses







 






241,817






 






 






 






238,862






 






 






 






223,064






 








Noninterest income:







 






 






 






 






 








Service charges on deposit accounts







 






4,978






 






 






 






5,038






 






 






 






4,543






 








Commissions and fees







 






10,980






 






 






 






9,524






 






 






 






9,958






 








Leased equipment income







 






8,530






 






 






 






16,381






 






 






 






10,784






 








Gain on sale of loans and leases







 






7






 






 






 






18






 






 






 






211






 








Dividends and gains on equity investments







 






2,002






 






 






 






3,492






 






 






 






2,323






 








Warrant income (loss)







 






938






 






 






 






361






 






 






 






(295






)








LOCOM HFS adjustment







 






3






 






 






 






—






 






 






 






—






 








Other income







 






7,890






 






 






 






6,757






 






 






 






6,126






 








Total noninterest income







 






35,328






 






 






 






41,571






 






 






 






33,650






 








Noninterest expense:







 






 






 






 






 








Compensation







 






91,100






 






 






 






85,862






 






 






 






86,417






 








Occupancy







 






14,892






 






 






 






14,726






 






 






 






15,010






 








Information technology and data processing







 






14,339






 






 






 






13,751






 






 






 






15,099






 








Other professional services







 






4,236






 






 






 






6,774






 






 






 






4,513






 








Insurance and assessments







 






6,764






 






 






 






7,070






 






 






 






7,283






 








Intangible asset amortization







 






6,348






 






 






 






6,788






 






 






 






7,160






 








Leased equipment depreciation







 






5,304






 






 






 






6,202






 






 






 






6,741






 








Customer related expense







 






23,737






 






 






 






24,870






 






 






 






27,751






 








Loan expense







 






4,292






 






 






 






4,445






 






 






 






2,930






 








Other expense







 






10,379






 






 






 






10,156






 






 






 






10,749






 








Total noninterest expense







 






181,391






 






 






 






180,644






 






 






 






183,653






 








Earnings before income taxes







 






95,754






 






 






 






99,789






 






 






 






73,061






 








Income tax expense







 






23,802






 






 






 






22,398






 






 






 






19,493






 








Net earnings







 






71,952






 






 






 






77,391






 






 






 






53,568






 








Preferred stock dividends







 






9,947






 






 






 






9,947






 






 






 






9,947






 








Net earnings available to common and equivalent stockholders







$






62,005






 






 






$






67,444






 






 






$






43,621






 








Earnings per common share:







 






 






 






 






 








Basic







$






0.40






 






 






$






0.43






 






 






$






0.26






 








Diluted







$






0.39






 






 






$






0.42






 






 






$






0.26






 








Weighted average number of common shares outstanding: (1)







 






 






 






 






 








Basic







 






154,821






 






 






 






155,449






 






 






 






168,495






 








Diluted







 






160,832






 






 






 






160,094






 






 






 






169,434






 








____________________



(1)







Common shares outstanding include non-voting common stock equivalents that are participating securities.









BANC OF CALIFORNIA, INC.








SELECTED FINANCIAL DATA








(UNAUDITED)













 



 







Three Months Ended








 







March 31,






 






December 31,






 






March 31,








Profitability and Other Ratios







2026






 






2025






 






2025








Return on average assets (1)







0.86






%






 






0.91






%






 






0.65






%








Return on average equity (1)







8.22






%






 






8.79






%






 






6.16






%








Return on average tangible common equity (1)(2)







9.91






%






 






10.75






%






 






7.56






%








Dividend payout ratio (3)







30.00






%






 






23.26






%






 






38.46






%








Average yield on loans and leases (1)







5.74






%






 






5.83






%






 






5.90






%








Average yield on interest-earning assets (1)







5.25






%






 






5.31






%






 






5.39






%








Average cost of interest-bearing deposits (1)







2.51






%






 






2.66






%






 






2.97






%








Average total cost of deposits (1)







1.78






%






 






1.89






%






 






2.12






%








Average cost of interest-bearing liabilities (1)







2.85






%






 






2.98






%






 






3.28






%








Average total cost of funds (1)







2.10






%






 






2.20






%






 






2.42






%








Net interest spread







2.40






%






 






2.33






%






 






2.11






%








Net interest margin (1)







3.24






%






 






3.20






%






 






3.08






%








Noninterest income to total revenue (4)







12.31






%






 






14.19






%






 






12.65






%








Noninterest expense to average total assets (1)







2.16






%






 






2.12






%






 






2.24






%








Noninterest expense to total revenue (4)







63.21






%






 






61.67






%






 






69.04






%








Efficiency ratio (2)(5)







61.00






%






 






59.35






%






 






66.35






%








Loans to deposits ratio







91.65






%






 






90.56






%






 






88.82






%








Average loans and leases to average deposits







90.45






%






 






89.81






%






 






88.36






%








Average investment securities to average total assets







14.76






%






 






14.49






%






 






14.21






%








Average stockholders' equity to average total assets







10.44






%






 






10.35






%






 






10.58






%








____________________



(1)







Annualized.








(2)







Non-GAAP measure.








(3)







Ratio calculated by dividing dividends declared per common and equivalent share by basic earnings per common and equivalent share.








(4)







Total revenue equals the sum of net interest income and noninterest income.








(5)







Ratio calculated by dividing noninterest expense (less intangible asset amortization and acquisition, integration and reorganization costs) by total revenue.









BANC OF CALIFORNIA, INC.








AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID








(UNAUDITED)








 







 







 







 







 







 







 







 







 







 








 







Three Months Ended








 







March 31, 2026







December 31, 2025







March 31, 2025








 







 







Interest







Average







 







Interest







Average







 







Interest







Average








 







Average







Income/







Yield/







Average







Income/







Yield/







Average







Income/







Yield/








 







Balance







Expense







Cost







Balance







Expense







Cost







Balance







Expense







Cost








 







(Dollars in thousands)








Assets:







 







 







 







 







 







 







 







 







 








Loans and leases (1)







$






24,710,609






 







$






349,943






 







5.74






%







$






24,443,089






 







$






359,268






 







5.83






%







$






23,788,647






 







$






346,103






 







5.90






%








Investment securities







 






5,018,002






 







 






41,873






 







3.38






%







 






4,891,281






 







 






39,557






 







3.21






%







 






4,734,037






 







 






37,862






 







3.24






%








Deposits in financial institutions







 






1,742,657






 







 






15,626






 







3.64






%







 






1,834,773






 







 






18,123






 







3.92






%







 






2,088,139






 







 






22,690






 







4.41






%








Total interest-earning assets







 






31,471,268






 







 






407,442






 







5.25






%







 






31,169,143






 







 






416,948






 







5.31






%







 






30,610,823






 







 






406,655






 







5.39






%








Other assets







 






2,531,433






 







 







 







 






2,583,357






 







 







 







 






2,697,562






 







 







 








Total assets







$






34,002,701






 







 







 







$






33,752,500






 







 







 







$






33,308,385






 







 







 








 







 







 







 







 







 







 







 







 







 








Liabilities and Stockholders' Equity:







 







 







 







 







 







 







 







 







 








Interest checking







$






8,175,172






 







 






46,882






 







2.33






%







$






7,944,858






 







 






49,319






 







2.46






%







$






7,343,451






 







 






47,879






 







2.64






%








Money market







 






4,785,691






 







 






22,826






 







1.93






%







 






4,948,960






 







 






25,810






 







2.07






%







 






5,415,716






 







 






33,003






 







2.47






%








Savings







 






1,957,831






 







 






9,772






 







2.02






%







 






1,942,678






 







 






10,863






 







2.22






%







 






1,948,649






 







 






12,857






 







2.68






%








Time







 






4,510,418






 







 






40,753






 







3.66






%







 






4,570,369






 







 






43,904






 







3.81






%







 






4,498,268






 







 






46,791






 







4.22






%








Total interest-bearing deposits







 






19,429,112






 







 






120,233






 







2.51






%







 






19,406,865






 







 






129,896






 







2.66






%







 






19,206,084






 







 






140,530






 







2.97






%








Borrowings







 






1,765,661






 







 






20,177






 







4.63






%







 






1,661,808






 







 






19,858






 







4.74






%







 






1,397,720






 







 






18,421






 







5.34






%








Subordinated debt







 






953,739






 







 






15,415






 







6.55






%







 






951,471






 







 






15,832






 







6.60






%







 






942,817






 







 






15,340






 







6.60






%








Total interest-bearing liabilities







 






22,148,512






 







 






155,825






 







2.85






%







 






22,020,144






 







 






165,586






 







2.98






%







 






21,546,621






 







 






174,291






 







3.28






%








Noninterest-bearing demand deposits







 






7,890,489






 







 







 







 






7,809,326






 







 







 







 






7,714,830






 







 







 








Other liabilities







 






415,000






 







 







 







 






428,873






 







 







 







 






522,753






 







 







 








Total liabilities







 






30,454,001






 







 







 







 






30,258,343






 







 







 







 






29,784,204






 







 







 








Stockholders' equity







 






3,548,700






 







 







 







 






3,494,157






 







 







 







 






3,524,181






 







 







 








Total liabilities and stockholders' equity







$






34,002,701






 







 







 







$






33,752,500






 







 







 







$






33,308,385






 







 







 








Net interest income (1)







 







$






251,617






 







 







 







$






251,362






 







 







 







$






232,364






 







 








Net interest spread







 







 







2.40






%







 







 







2.33






%







 







 







2.11






%








Net interest margin







 







 







3.24






%







 







 







3.20






%







 







 







3.08






%








 







 







 







 







 







 







 







 







 







 








Total deposits (2)







$






27,319,601






 







$






120,233






 







1.78






%







$






27,216,191






 







$






129,896






 







1.89






%







$






26,920,914






 







$






140,530






 







2.12






%








Total funds (3)







$






30,039,001






 







$






155,825






 







2.10






%







$






29,829,470






 







$






165,586






 







2.20






%







$






29,261,451






 







$






174,291






 







2.42






%








____________________



(1)







Includes net loan discount accretion of $12.2 million, $12.7 million, and $16.0 million for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025.








(2)







Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits. The cost of total deposits is calculated as annualized interest expense on total deposits divided by average total deposits.








(3)







Total funds is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of total funds is calculated as annualized total interest expense divided by average total funds.







BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES


We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles (“GAAP”) in this press release, including: tangible common equity, tangible book value per common share, return on average tangible common equity, pre-tax pre-provision income, efficiency ratio, and economic coverage ratio. These non-GAAP measures are used by management in its analysis of the Company's performance.


Tangible common equity is calculated by subtracting preferred stock, as applicable, from total common equity. Return on average tangible common equity is calculated by dividing net earnings available to common stockholders, after adjustment for amortization of intangible assets and any goodwill impairment, by average tangible common equity. Banking regulators also exclude goodwill and other intangible assets from stockholders' equity when assessing the capital adequacy of a financial institution.


Pre-tax pre-provision income is calculated by subtracting noninterest expense from total revenue, which is the sum of net interest income and noninterest income.


Efficiency ratio is calculated by dividing noninterest expense (less intangible asset amortization and acquisition, integration and reorganization costs) by total revenue (the sum of net interest income and noninterest income).


Economic coverage ratio is calculated by dividing the allowance for credit losses adjusted for the impact of the credit-linked notes and unearned credit mark from purchase accounting by loans and leases HFI.


Management believes the presentation of these financial measures adjusting the impact of these items provides useful supplemental information that is essential to a proper understanding of the financial results and operating performance of the Company. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.


The following tables provide reconciliations of the non-GAAP measures to financial measures defined by GAAP.




BANC OF CALIFORNIA, INC.








NON-GAAP MEASURES








(UNAUDITED)








 







 






 






 






 






 






 






 






 






 








Tangible Common Equity







March 31,






 






December 31,






 






September 30,






 






June 30,






 






March 31,








and Tangible Book Value Per Share







2026






 






2025






 






2025






 






2025






 






2025








 







(Dollars in thousands, except per share amounts)








Stockholders' equity







$






3,553,326






 






 






$






3,541,277






 






 






$






3,466,739






 






 






$






3,426,843






 






 






$






3,521,656






 








Less: Preferred stock







 






498,516






 






 






 






498,516






 






 






 






498,516






 






 






 






498,516






 






 






 






498,516






 








Total common equity







 






3,054,810






 






 






 






3,042,761






 






 






 






2,968,223






 






 






 






2,928,327






 






 






 






3,023,140






 








Less: Goodwill and intangible assets







 






313,612






 






 






 






319,808






 






 






 






326,444






 






 






 






333,451






 






 






 






340,458






 








Tangible common equity







$






2,741,198






 






 






$






2,722,953






 






 






$






2,641,779






 






 






$






2,594,876






 






 






$






2,682,682






 








 







 






 






 






 






 






 






 






 






 








Book value per common share (1)







$






19.80






 






 






$






19.56






 






 






$






19.09






 






 






$






18.58






 






 






$






18.17






 








Tangible book value per common share (2)







$






17.77






 






 






$






17.51






 






 






$






16.99






 






 






$






16.46






 






 






$






16.12






 








Common shares outstanding (3)







 






154,262,045






 






 






 






155,533,403






 






 






 






155,522,693






 






 






 






157,647,137






 






 






 






166,403,086






 








____________________



(1)







Total common equity divided by common shares outstanding.








(2)







Tangible common equity divided by common shares outstanding.








(3)







Common shares outstanding include non-voting common stock equivalents that are participating securities. There were no non-voting common stock equivalents outstanding as of March 31, 2026.









BANC OF CALIFORNIA, INC.








NON-GAAP MEASURES








(UNAUDITED)













 



 







Three Months Ended








Return on Average Tangible







March 31,






 






December 31,






 






March 31,








Common Equity ("ROATCE")







2026






 






2025






 






2025








 







(Dollars in thousands)








Net earnings







$






71,952






 






 






$






77,391






 






 






$






53,568






 








 







 






 






 






 






 








Earnings before income taxes







 






 






 






 






$






73,061






 








Add: Intangible asset amortization







 






 






 






 






 






7,160






 








Adjusted earnings before income taxes for ROATCE







 






 






 






 






 






80,221






 








Adjusted income tax expense (1)







 






 






 






 






 






20,296






 








 







 






 






 






 






 








Adjustments:







 






 






 






 






 








Intangible asset amortization







 






6,348






 






 






 






6,788






 






 






 








Tax impact of adjustment above (1)







 






(1,596






)






 






 






(1,823






)






 






 








Adjustment to net earnings







 






4,752






 






 






 






4,965






 






 






 








 







 






 






 






 






 








Adjusted net earnings for ROATCE







 






76,704






 






 






 






82,356






 






 






 






59,925






 








Less: Preferred stock dividends







 






9,947






 






 






 






9,947






 






 






 






9,947






 








Adjusted net earnings available to common and equivalent stockholders for ROATCE







$






66,757






 






 






$






72,409






 






 






$






49,978






 








 







 






 






 






 






 








Average stockholders' equity







$






3,548,700






 






 






$






3,494,157






 






 






$






3,524,181






 








Less: Average goodwill and intangible assets







 






317,215






 






 






 






323,295






 






 






 






344,610






 








Less: Average preferred stock







 






498,516






 






 






 






498,516






 






 






 






498,516






 








Average tangible common equity







$






2,732,969






 






 






$






2,672,346






 






 






$






2,681,055






 








 







 






 






 






 






 








Return on average equity (2)







 






8.22






%






 






 






8.79






%






 






 






6.16






%








ROATCE (3)







 






9.91






%






 






 






10.75






%






 






 






7.56






%








____________________



(1)







Effective tax rates of 25.14%, 26.86%, and 25.30% used for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively.








(2)







Annualized net earnings divided by average stockholders' equity.








(3)







Annualized adjusted net earnings available to common and equivalent stockholders for ROATCE divided by average tangible common equity.









 







Three Months Ended








 







March 31,






 






December 31,






 






March 31,








Pre-Tax Pre-Provision Income







2026






 






2025






 






2025








 







(Dollars in thousands)








Net interest income (GAAP)







$






251,617






 






 






$






251,362






 






 






$






232,364






 








Add: Noninterest income (GAAP)







 






35,328






 






 






 






41,571






 






 






 






33,650






 








Total revenues (GAAP)







 






286,945






 






 






 






292,933






 






 






 






266,014






 








Less: Noninterest expense (GAAP)







 






181,391






 






 






 






180,644






 






 






 






183,653






 








Pre-tax pre-provision income (Non-GAAP)







$






105,554






 






 






$






112,289






 






 






$






82,361






 









BANC OF CALIFORNIA, INC.








NON-GAAP MEASURES








(UNAUDITED)













 



 







Three Months Ended








 







March 31,






 






December 31,






 






March 31,








Efficiency Ratio







2026






 






2025






 






2025








 







(Dollars in thousands)








Noninterest expense







$






181,391






 






 






$






180,644






 






 






$






183,653






 








Less: Intangible asset amortization







 






(6,348






)






 






 






(6,788






)






 






 






(7,160






)








Noninterest expense used for efficiency ratio







$






175,043






 






 






$






173,856






 






 






$






176,493






 








 







 






 






 






 






 








Net interest income







$






251,617






 






 






$






251,362






 






 






$






232,364






 








Noninterest income







 






35,328






 






 






 






41,571






 






 






 






33,650






 








Total revenue used for efficiency ratio







$






286,945






 






 






$






292,933






 






 






$






266,014






 



















 



Noninterest expense to total revenue







 






63.21






%






 






 






61.67






%






 






 






69.04






%








Efficiency ratio (1)







 






61.00






%






 






 






59.35






%






 






 






66.35






%








____________________



(1)







Noninterest expense used for efficiency ratio divided by total revenue used for efficiency ratio.









 







March 31,






 






December 31,








Economic Coverage Ratio







2026






 






2025








 







(Dollars in thousands)








Allowance for credit losses ("ACL")







$






276,521






 






 






$






280,533






 








Add: Unearned credit mark from purchase accounting (1)







 






14,315






 






 






 






15,865






 








Add: Credit-linked notes (2)







 






104,988






 






 






 






108,413






 








Adjusted allowance for credit losses







$






395,824






 






 






$






404,811






 








 







 






 






 








Loans and leases HFI







$






24,780,347






 






 






$






25,032,679






 








 







 






 






 








ACL to loans and leases HFI (3)







 






1.12






%






 






 






1.12






%








Economic coverage ratio (4)







 






1.60






%






 






 






1.62






%








____________________



(1)







Unearned credit mark from purchase accounting estimated by using the same pro rata split between the credit and yield marks associated with non-PCD loans (purchased loans without credit deterioration at the time of purchase).








(2)







Credit-linked notes loss coverage equal to 5% of the unpaid principal balance of the pledged loans.








(3)







Allowance for credit losses divided by loans and leases HFI.








(4)







Adjusted allowance for credit losses divided by loans and leases HFI.







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260422598253/en/
Investor Relations Inquiries:

Banc of California, Inc.

(855) 361-2262

Jared Wolff, (310) 424-1230

Joe Kauder, (310) 844-5224

Ann DeVries, (646) 376-7011
Media Contact:

Debora Vrana, Banc of California

(213) 533-3122

Deb.Vrana@bancofcal.com


Original: Banc of California, Inc. Reports First Quarter Diluted Earnings per Share of $0.39, Up 50% Year over Year; Net Interest Margin Expands to 3.24%; Positive Operating Leverage Continues