BANC OF CALIFORNIA, INC. (Form: 8-K, Received: 07/25/2019 06:08:33)

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 25, 2019

BANC OF CALIFORNIA, INC.

(Exact name of registrant as specified in its charter)




Maryland	001-35522	04-3639825
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)




3 MacArthur Place, Santa Ana, California	92707
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (855) 361-2262

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	BANC	New York Stock Exchange
Depositary Shares each representing a 1/40th Interest in a share of 7.375% Non-Cumulative Perpetual Preferred Stock, Series D	BANC PRD	New York Stock Exchange
Depositary Shares each representing a 1/40th Interest in a share of 7.00% Non-Cumulative Perpetual Preferred Stock, Series E	BANC PRE	New York Stock Exchange

Item 2.02 Results of Operations and Financial Condition.

On July 25, 2019 , Banc of California, Inc. (the “Company”) issued a press release announcing 2019 second quarter financial results. The Company will host a conference call to discuss these results at 10:00 A.M. Pacific Time on Thursday, July 25, 2019 . Interested parties may attend the conference call by dialing 888-317-6003 , and referencing event code 4783507 . A live audio webcast will be available through the webcast link to be posted on the Company’s Investor Relations website at www.bancofcal.com/investor , in addition to the slide presentation for investor review prior to the call.

Copies of the press release and presentation materials are attached to this report as Exhibits 99.1 and 99.2 and are incorporated by reference herein.

Forward-Looking Statements

This Current Report on Form 8-K includes forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. 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 Banc of California, Inc. with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements and Banc of California, Inc. undertakes no obligation to update any such statements to reflect circumstances or events that occur after the date on which the forward-looking statement is made.

Item 9.01 Financial Statements and Exhibits.

99.1 Banc of California, Inc. Press Release dated July 25, 2019 .

99.2 Banc of California, Inc. Earnings Conference Call Presentation Materials dated July 25, 2019 .

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BANC OF CALIFORNIA, INC.



July 25, 2019	/s/ John A. Bogler
	John A. Bogler
	Executive Vice President and Chief Financial Officer

Banc of California Reports Second Quarter 2019 Earnings

SANTA ANA, Calif., ( July 25, 2019 ) — (BUSINESS WIRE) — Banc of California, Inc. (NYSE: BANC) today reported net income available to common stockholders of $11.9 million , for the second quarter of 2019 , resulting in diluted earnings per common share of $0.23 .

Highlights for the second quarter included:

Net interest margin increased by 5 basis points from the prior quarter to 2.86% for the second quarter, resulting from a 5 basis point decline in our cost of deposits

Loan production was $599 million for the quarter, including $186 million of commercial and industrial loan commitments

Loan delinquencies decreased by 12.2% from the prior quarter to $52.2 million

Held-for-investment loan balances for the second quarter decreased to $6.7 billion as we sold lower coupon single family and multifamily loans and transferred $574 million of multifamily loans to held-for-sale, pending a planned Freddie Mac securitization

Collateralized loan obligations declined to $737 million following $298 million of sales and calls

Noninterest expense was $43.6 million for the quarter, including non-core expenses of $6.2 million of litigation, indemnification, investigation and other legal fees, $12.6 million of insurance recoveries, and net project charge-offs of $869 thousand

Efficiency ratio for the second quarter decreased to 69.75%

Return on average assets increased to 0.69% , while return on average tangible common equity was 7.43%

Jared Wolff, President and Chief Executive Officer of Banc of California, commented, “The second quarter results reflect our accelerated efforts to focus on our three initiatives designed to improve our franchise and profitability on an ongoing basis: reducing our cost of deposits, optimizing the balance sheet to focus on higher-margin products and appropriately managing down expenses to the size and complexity of the business. Through these efforts, we continue to transform our franchise into a relationship-focused community bank, maintaining our high credit quality and serving businesses, entrepreneurs and individuals within our footprint. Further, as part of our efforts to improve our balance sheet, we commenced today a tender offer for our preferred equity for up to $75 million aggregate purchase price.”

Speaking specifically about operational results for the quarter, John Bogler, Chief Financial Officer of Banc of California said “The sales of non-core and low-margin assets allowed us to reduce high costing deposits, resulting in a 5 basis point decline in the cost of total deposits. Efforts to simplify our operating model allowed noninterest expense and operating expenses each to come in below $50 million for the quarter, which is ahead of our schedule for reducing expenses.”

Business Results - Income Statement Highlights



	Three Months Ended
	June 30, 2019			March 31, 2019		December 31, 2018		September 30, 2018		June 30, 2018
Total interest and dividend income	$	104,040		$	110,712	$	111,130	$	107,774	$	105,185
Total interest expense	39,260			42,904		40,448		36,582		32,421
(Reversal of) provision for loan and lease losses	(1,987		)	2,512		6,653		1,410		2,653
Net interest income after provision for loan and lease losses	66,767			65,296		64,029		69,782		70,111
Total noninterest (loss) income	(2,290		)	6,295		2,448		4,824		8,061
Total noninterest expense	43,587			61,835		49,569		60,877		62,539
Income tax expense	4,308			2,719		6,117		3,301		1,779
Income from continuing operations	16,582			7,037		10,791		10,428		13,854
Income from discontinued operations	—			—		247		668		926
Net income	$	16,582		$	7,037	$	11,038	$	11,096	$	14,780

Net interest income for the second quarter decreased to $64.8 million as we sold non-core assets and repaid high cost funding during the quarter. For the second quarter, average interest-earning assets declined from the prior quarter by $695 million to $9.1 billion , while the net interest margin improved by 5 basis points versus the prior quarter.

Our average yield on interest-earning assets remained flat at 4.59% for the second quarter as compared to the first quarter of 2019, primarily attributable to an increase in our average yield on loans partially offset by a decrease in our average yield on securities. Our average yield on loans came in at 4.80% for the second quarter which increased by 4 basis points from the prior quarter, primarily attributable to a reduction in lower-yielding single family residential mortgage and multifamily loans. Our average yield on securities decreased primarily as a result of an interest rate reset on our collateralized loan obligations and a decrease in our average balance attributable to the sale and calls of $298 million of our higher yielding collateralized loan obligations during the second quarter. The decline in the average balance of collateralized loan obligations was also due to sales that occurred late in the first quarter of 2019. We sold a significant amount of these securities at the end of the first quarter, with the full impact of the first quarter sales reflected in the second quarter.

Our average cost of interest-bearing liabilities decreased to 2.09% for the second quarter from 2.12% for the first quarter, primarily resulting from a 5 basis point decrease in our average cost of total deposits from the prior quarter to 1.62% for the second quarter. The decrease in our cost of deposits from the prior quarter primarily resulted from the shift in our deposit strategy to focus on relationship-based customers and de-emphasize high-rate transactional customers.

Provision for loan losses

During the second quarter, we released $2.0 million of our allowance for loan losses primarily attributable to a decrease in the held-for-investment loan portfolio, partially offset by an increase in net charge-offs and other qualitative provisions during the quarter. The decrease in the loan portfolio primarily resulted from the sale of $178 million of multifamily loans and the transfer of $574 million of multifamily loans to held-for-sale. During the quarter, we had $2.4 million in net charge-off activity and a $900 thousand increase in our specific reserves. The net charge-offs were driven primarily by a charge-off of $2.0 million on one commercial and industrial loan relationship.

Noninterest (loss) income

Noninterest (loss) income for the second quarter was $(2.3) million , which represented a decrease of $8.6 million , or 136.38% from the prior quarter. The decrease is primarily attributable to a $9.6 million loss on our hedge of the pending Freddie Mac multifamily securitization in which we also plan to sell the associated mortgage servicing rights. The $9.6 million hedging loss is due to a decline in interest rates since the hedge was executed and is expected to be mostly offset by the gain in fair value of the loans sold into the securitization in the third quarter. This was partially offset by an increase of $1.3 million in our gain on sale of loans during the second quarter, resulting from the sale of $178 million and $344 million of multifamily and single family residential mortgage loans, respectively.

Noninterest expense for the second quarter was $43.6 million , which represented a decrease of $18.2 million , or 29.5% , from the prior quarter. The decrease primarily relates to: (1) a $13.9 million decline in our professional fees, primarily attributable to $6.2 million of insurance recoveries net of expenses related to securities litigation, indemnification, investigation and other legal expenses in the second quarter as compared to $3.0 million of net expense in the prior quarter, (2) $158 thousand reversal true-up related to restructuring expense in the second quarter as compared to $2.8 million of restructuring expense in the prior quarter, and (3) a 933 thousand decrease in our compensation expense resulting from lower headcount. The net recovery of $6.2 million in insurance proceeds from the securities litigation, indemnification, investigation and other legal expenses reduced our efficiency ratio by 10%.

Taxes totaled $4.3 million for the quarter, representing an increase of 58% from the prior quarter, and an effective tax rate of 20.62% . During the second quarter of 2019, we closed on a tax planning strategy investment that is expected to produce $3.4 million of investment tax credits in 2019, resulting in a 5% reduction in the projected annual effective tax rate. For the full year, we expect our tax rate to normalize closer to 20%.

The following table shows selected balance sheet line items as of June 30, 2019 and for the previous four quarters. As indicated in the table below, at June 30, 2019 , total assets were approximately $9.4 billion , which represented a decrease of $527 million million consistent with our strategic shift towards reducing our balance sheet and focusing on relationship lending.



	As of and for the Three Months Ended															Amount Change
	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018			Q2-19 vs. Q1-19			Q2-19 vs. Q2-18

Total assets	$	9,359,931		$	9,886,525		$	10,630,067		$	10,260,822		$	10,319,280		$	(526,594	)	$	(959,349	)
Securities available-for-sale	$	1,167,687		$	1,471,303		$	1,992,500		$	2,059,832		$	2,297,124		$	(303,616	)	$	(1,129,437	)
Loans held-for-investment	$	6,719,570		$	7,557,200		$	7,700,873		$	7,253,293		$	7,036,004		$	(837,630	)	$	(316,434	)
Loans held-for-sale	$	597,720		$	25,191		$	8,116		$	9,382		$	13,753		$	572,529		$	583,967

Demand deposits	$	2,571,646		$	2,694,199		$	2,579,770		$	2,775,347		$	2,783,432		$	(122,553	)	$	(211,786	)
Other core deposits	3,239,667			3,735,667			3,793,605			3,638,624			3,666,159			(496,000		)	(426,492		)
Brokered deposits	480,977			1,295,066			1,543,269			987,771			686,203			(814,089		)	(205,226		)
Total Deposits	$	6,292,290		$	7,724,932		$	7,916,644		$	7,401,742		$	7,135,794		$	(1,432,642	)	$	(843,504	)
As percentage of total deposits
Demand deposits	40.87		%	34.88		%	32.59		%	37.50		%	39.01		%	5.99		%	1.86		%
Other core deposits	51.49		%	48.36		%	47.92		%	49.16		%	51.38		%	3.13		%	0.11		%
Brokered deposits	7.64		%	16.76		%	19.49		%	13.35		%	9.62		%	(9.12		)%	(1.98		)%

Average Loan Yield	4.80		%	4.76		%	4.74		%	4.70		%	4.63		%	0.04		%	0.17		%
Average Cost of Interest-Bearing Deposits	1.89		%	1.92		%	1.77		%	1.58		%	1.34		%	(0.03		)%	0.55		%

Securities available-for-sale declined to $1.2 billion , a decrease of 20.6% from the previous quarter, primarily due to the continued reduction in the size of the collateralized loan obligation portfolio. During the second quarter, $298 million of collateralized loan obligations were sold or called. As of June 30, 2019 , our securities balance included $737 million of collateralized loan obligations, $852 thousand of small business administration loan pool securities, $429 million of agency residential mortgage-backed securities and $285 thousand of non-agency residential mortgage-backed securities.

The following table sets forth the composition, by loan category, of our loan portfolio at June 30, 2019 and the previous four quarters.



	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Composition of held-for-investment loans
Commercial real estate	$	856,497		$	865,521		$	867,013		$	823,193		$	793,855
Multifamily	1,598,978			2,332,527			2,241,246			2,112,190			1,959,965
Construction	209,029			211,549			203,976			200,294			211,110
Commercial and industrial	1,951,707			1,907,102			1,944,142			1,673,055			1,742,559
SBA	80,929			74,998			68,741			71,494			78,092
Total commercial loans	4,697,140			5,391,697			5,325,118			4,880,226			4,785,581
Single family residential mortgage	1,961,065			2,102,694			2,305,490			2,300,069			2,174,183
Other consumer	61,365			62,809			70,265			72,998			76,240
Total consumer loans	2,022,430			2,165,503			2,375,755			2,373,067			2,250,423
Total gross loans	$	6,719,570		$	7,557,200		$	7,700,873		$	7,253,293		$	7,036,004
Composition percentage of held-for-investment loans
Commercial real estate	12.7		%	11.5		%	11.3		%	11.3		%	11.3		%
Multifamily	23.8		%	30.9		%	29.2		%	29.1		%	27.9		%
Construction	3.1		%	2.8		%	2.6		%	2.8		%	3.0		%
Commercial and industrial	29.1		%	25.2		%	25.2		%	23.1		%	24.8		%
SBA	1.2		%	1.0		%	0.9		%	1.0		%	1.1		%
Total commercial loans	69.9		%	71.4		%	69.2		%	67.3		%	68.1		%
Single family residential mortgage	29.2		%	27.8		%	29.9		%	31.7		%	30.9		%
Other consumer	0.9		%	0.8		%	0.9		%	1.0		%	1.0		%
Total consumer loans	30.1		%	28.6		%	30.8		%	32.7		%	31.9		%
Total gross loans	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Held-for-investment loans decreased to $6.7 billion driven mostly by the transfer of $574 million of multifamily loans from held-for-investment to held-for-sale during the quarter and the sale of $178 million and $131 million of multifamily and single family residential mortgage loans, respectively, partially offset by quarterly net production of $45 million. The quarterly net production increased from the prior quarter primarily as a result of new loan growth of $63 million during the quarter, and $128 million of single family residential mortgage loan production in the second quarter as opposed to $183 million during the first quarter of 2019. The $128 million of single family residential mortgage loan production in the second quarter represented funding on commitments made prior to our decision to discontinue the single family residential mortgage loan business. Going forward, we would expect minimal production from this business in the third and fourth quarters of 2019 as we focus on relationship lending.

Commercial real estate loans comprised 12.7% of the loan portfolio and commercial and industrial loans constituted 29.1% , with yields of 4.67% and 5.77%, respectively. During the second quarter of 2019, our commercial and industrial loan production was $186 million, which represented an increase of 12.6% over the prior quarter.

Held-for-sale loans increased by $573 million primarily resulting from the transfer of certain multifamily loans from loans held-for-investment related to our pending Freddie Mac multifamily securitization which is expected to close during the third quarter of 2019. The loans included in the securitization have a weighted average coupon of 3.79% and a weighted average term to initial reset of 3.5 years. The related mortgage servicing rights will also be sold.

Excluding the aforementioned loan sales and loans transferred to held-for-sale, the loan portfolio had net growth of $45 million from the prior quarter.

The following table sets forth the composition of our deposits at June 30, 2019 and the previous four quarters.



	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Composition of deposits
Noninterest-bearing checking	$	993,745		$	1,120,700		$	1,023,360		$	1,061,557		$	1,005,032
Interest-bearing checking	1,577,901			1,573,499			1,556,410			1,713,790			1,778,400
Money market	800,898			899,330			873,153			856,886			1,136,335
Savings	1,061,115			1,151,442			1,265,847			1,269,489			1,175,275
Non-brokered certificates of deposit	1,479,137			1,684,895			1,654,605			1,512,249			1,354,549
Brokered certificates of deposit	379,494			1,295,066			1,543,269			987,771			686,203
Total deposits	$	6,292,290		$	7,724,932		$	7,916,644		$	7,401,742		$	7,135,794
Composition percentage of deposits
Noninterest-bearing checking	15.8		%	14.5		%	12.9		%	14.3		%	14.1		%
Interest-bearing checking	25.1		%	20.4		%	19.7		%	23.2		%	24.9		%
Money market	12.7		%	11.6		%	11.0		%	11.6		%	15.9		%
Savings	16.9		%	14.9		%	16.0		%	17.2		%	16.5		%
Non-brokered certificates of deposit	23.5		%	21.8		%	20.9		%	20.4		%	19.0		%
Brokered certificates of deposit	6.0		%	16.8		%	19.5		%	13.3		%	9.6		%
Total deposits	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Deposits finished the second quarter at $6.3 billion , with noninterest-bearing deposits decreasing approximately $127 million. The decline in noninterest-bearing deposits for the quarter consisted primarily of transactional balances that fluctuate throughout the quarter but are expected to return. For the second quarter, the average balance of noninterest-bearing deposits was $1.034 billion up from the first quarter average balance of $1.022 billion . Total deposits decreased by $1.4 billion, of which $916 million was as a result of maturities on our brokered certificates of deposit and no new brokered certificates of deposit were acquired during the quarter.

Advances from the Federal Home Loan Bank (“FHLB”) increased $890 million , or 95% , to $1.8 billion as of June 30, 2019 , as a result of overnight advances with the FHLB that we plan to pay down with the proceeds from the sale of loans sold into the Freddie Mac multifamily securitization which is expected to close in the third quarter. At the end of the quarter, the maturity dates of FHLB advances consisted of $645 million of overnight, $400 million maturing in 3 months or less, and $780 million maturing beyond 3 months. As of the end of the quarter, the overnight advance interest rate was 2.52%.

At June 30, 2019 , stockholders’ equity increased by $15.2 million to $963.5 million , while tangible common equity was $690.2 million . The improvement in stockholders’ equity partially related to the improvement within our accumulated other comprehensive income as a result of other comprehensive income of $5.4 million . During the second quarter of 2019, we reduced the dividend per common share from 13 cents to 6 cents. Subsequent to June 30, 2019, we launched a tender offer for our preferred equity for up to $75 million aggregate purchase price with the tender offer expected to close by the end of August.

Capital remains strong with total risk based capital at 14.88% and a tier 1 leverage ratio of 9.62% . The following table sets forth our regulatory capital ratios at June 30, 2019 and the previous four quarters.



	June 30, 2019		March 31, 2019		December 31, 2018		September 30, 2018		June 30, 2018
Capital Ratios
Banc of California, Inc.
Total risk-based capital ratio	14.88	%	14.01	%	13.71	%	14.05	%	14.71	%
Tier 1 risk-based capital ratio	13.91	%	13.03	%	12.77	%	13.15	%	13.83	%
Common equity tier 1 capital ratio	10.41	%	9.72	%	9.53	%	9.80	%	9.90	%
Tier 1 leverage ratio	9.62	%	8.87	%	8.95	%	8.99	%	9.30	%
Banc of California, NA
Total risk-based capital ratio	16.56	%	15.79	%	15.71	%	15.94	%	16.63	%
Tier 1 risk-based capital ratio	15.60	%	14.81	%	14.77	%	15.04	%	15.74	%
Common equity tier 1 capital ratio	15.60	%	14.81	%	14.77	%	15.04	%	15.74	%
Tier 1 leverage ratio	10.80	%	10.07	%	10.36	%	10.29	%	10.58	%



	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Asset quality information and ratios	($ in thousands)
Delinquent loans held-for-investment
30 to 89 days delinquent	$	34,938		$	44,840		$	26,684		$	20,265		$	15,097
90+ days delinquent	17,272			14,623			13,846			15,269			11,453
Total delinquent loans	$	52,210		$	59,463		$	40,530		$	35,534		$	26,550
Total delinquent loans to total loans	0.78		%	0.79		%	0.53		%	0.49		%	0.38		%
Non-performing assets, excluding loans held-for-sale
Non-performing loans	$	28,499		$	27,739		$	21,585		$	25,523		$	22,290
90+ days delinquent and still accruing loans	275			731			470			—			—
Other real estate owned	276			316			672			434			710
Non-performing assets	$	29,050		$	28,786		$	22,727		$	25,957		$	23,000
ALLL to non-performing loans	206.86		%	224.40		%	281.99		%	226.39		%	254.28		%
Non-performing loans to total loans held-for-investment	0.43		%	0.38		%	0.29		%	0.35		%	0.32		%
Non-performing assets to total assets	0.31		%	0.29		%	0.21		%	0.25		%	0.22		%
Troubled debt restructurings (TDRs)
Performing TDRs	$	20,245		$	5,574		$	5,745		$	5,580		$	5,648
Non-performing TDRs	2,428			1,943			2,276			2,684			2,701
Total TDRs	$	22,673		$	7,517		$	8,021		$	8,264		$	8,349

Loan delinquencies decreased by 12.2% to $52.2 million at June 30, 2019 , primarily related to the decrease in our 30 to 89 days delinquent loans. The decrease in our total delinquent loans resulted from $12.6 million returning to current status and $11.7 million of principal payments or payoffs, partially offset by $17.0 million of additions. Loans 90+ days delinquent includes single family mortgage residential loans, which account for 44% of the balance. Loan delinquencies as a percentage of total loans held-for-investment decreased to 78 basis points for the quarter, primarily resulting from the improvement in our delinquent loans, partially offset by the reduction in our balance sheet over the same period.

Non-performing loans increased slightly to $28.5 million as of June 30, 2019 , while non-performing assets finished the second quarter at $29.1 million attributable to an increase in our nonperforming loans as of June 30, 2019 , partially offset by a reduction in our other real estate owned and loans 90+ days delinquent and still accruing interest. The increase in performing TDRs during the second quarter was primarily due to one loan relationship.

Allowance for Loan Losses



	Three Months Ended
	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
	($ in thousands)
Allowance for loan losses (ALLL)
Balance at beginning of period	$	63,885		$	62,192		$	57,782		$	56,678		$	54,763
Loans and leases charged off	$	(2,451	)	$	(1,063	)	$	(2,522	)	$	(388	)	$	(950	)
Recoveries	$	76		$	244		$	279		$	82		$	212
Net charge-offs	$	(2,375	)	$	(819	)	$	(2,243	)	$	(306	)	$	(738	)
(Reversal of) provision for loan losses	$	(1,987	)	$	2,512		$	6,653		$	1,410		$	2,653
Balance at end of period	$	59,523		$	63,885		$	62,192		$	57,782		$	56,678
Annualized net loan charge-offs to average total loans held-for-investment	0.13		%	0.04		%	0.12		%	0.02		%	0.04		%
Reserve for loss on repurchased loans
Balance at beginning of period	$	2,486		$	2,506		$	2,575		$	3,149		$	3,426
Reversal of provision for loan repurchases	(8		)	(20		)	(69		)	(342		)	(165		)
Utilization of reserve for loan repurchases	—			—			—			(232		)	(112		)
Balance at end of period	$	2,478		$	2,486		$	2,506		$	2,575		$	3,149

Charge-offs for the second quarter totaled $2.5 million , which primarily consisted of a $2.0 million write-down related to one loan relationship and a write-down of $425 thousand related to the sale of single family residential mortgage loans during the quarter. The allowance for loan losses decreased to $59.5 million , or 0.89% of total loans held-for-investment, primarily attributable to the release of $5.0 million resulting from the upcoming securitization of our multifamily portfolio and other decreases in the loan portfolio, partially offset by net charge-offs of $2.4 million and increases in other qualitative provisions during the quarter.

The Company will host a conference call to discuss its second quarter 2019 financial results at 10:00 a.m. Pacific Time (PT) on Thursday, July 25, 2019 . Interested parties are welcome to attend the conference call by dialing 888-317-6003 , and referencing event code 4783507 . 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.

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) is a bank holding company with approximately $9 billion in assets and one wholly-owned banking subsidiary, Banc of California, N.A. (the “Bank”). The Bank has 43 offices including 32 full-service branches located throughout Southern California. Through our 700+ dedicated professionals, we provide customized and innovative banking and lending solutions to businesses, entrepreneurs and individuals throughout California. We help to improve the communities where we live and work, by supporting organizations that provide financial literacy and job training, small business support and affordable housing. With a commitment to service and building enduring relationships, we provide a higher standard of banking. We look forward to helping you achieve your goals. For more information, please visit us at www.bancofcal.com .

Forward-Looking Statements

This press release includes 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 Banc of California, Inc. with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements and Banc of California, Inc. undertakes no obligation to update any such statements to reflect circumstances or events that occur after the date on which the forward-looking statement is made.

Additional Information

This press release is neither an offer to purchase nor a solicitation of an offer to sell securities. The tender offer for the outstanding depositary shares representing Banc of California, Inc.’s 7.00% Non-Cumulative Perpetual Preferred Stock, Series E and its 7.375% Non-Cumulative Perpetual Preferred Stock, Series D described in this press release is being made pursuant to an Offer to Purchase and related materials that Banc of California, Inc. has filed or will file with the Securities and Exchange Commission (the “SEC”) pursuant to a Schedule TO. The Schedule TO, Offer to Purchase, a related letter of transmittal and other tender offer documents contain important information that should be read carefully before any decision is made with respect to the tender offer. These materials (and all other documents Banc of California, Inc. has filed with the SEC) are available at no charge on the SEC's website at www.sec.gov.

Source: Banc of California, Inc.

INVESTOR RELATIONS INQUIRIES:

Banc of California, Inc.

John A. Bogler, (855) 361-2262

Banc of California, Inc.

Consolidated Statements of Financial Condition

(Dollars in thousands)



	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
ASSETS
Cash and cash equivalents	$	313,850		$	304,705		$	391,592		$	372,221		$	385,691
Securities available-for-sale	1,167,687			1,471,303			1,992,500			2,059,832			2,297,124
Loans held-for-sale	597,720			25,191			8,116			9,382			13,753
Loans held-for-investment	6,719,570			7,557,200			7,700,873			7,253,293			7,036,004
Allowance for loan losses	(59,523		)	(63,885		)	(62,192		)	(57,782		)	(56,678		)
Federal Home Loan Bank and other bank stock	76,373			55,794			68,094			71,308			75,737
Servicing rights, net	2,715			3,053			3,428			3,770			3,869
Other real estate owned, net	276			316			672			434			710
Premises and equipment, net	129,227			130,417			129,394			133,129			135,478
Investments in alternative energy partnerships, net	26,633			26,578			28,988			41,781			44,806
Goodwill	37,144			37,144			37,144			37,144			37,144
Other intangible assets, net	5,105			5,726			6,346			6,990			7,683
Deferred income tax, net	42,798			45,111			49,404			47,865			42,334
Income tax receivable	2,547			4,787			2,695			1,764			7,995
Bank owned life insurance investment	108,132			107,552			107,027			106,468			105,917
Right of use assets	24,118			24,519			—			—			—
Other assets	165,559			151,014			146,496			152,933			155,298
Assets of discontinued operations	—			—			19,490			20,290			26,415
Total assets	$	9,359,931		$	9,886,525		$	10,630,067		$	10,260,822		$	10,319,280

LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits	$	993,745		$	1,120,700		$	1,023,360		$	1,061,557		$	1,005,032
Interest-bearing deposits	5,298,545			6,604,232			6,893,284			6,340,185			6,130,762
Total deposits	6,292,290			7,724,932			7,916,644			7,401,742			7,135,794
Advances from Federal Home Loan Bank	1,825,000			935,000			1,520,000			1,640,000			1,805,000
Notes payable, net	173,257			173,203			173,174			173,096			173,017
Reserve for loss on repurchased loans	2,478			2,486			2,506			2,575			3,149
Lease liabilities	25,457			25,893			—			—			—
Due on unsettled securities purchases	—			—			—			17,500			132,546
Accrued expenses and other liabilities	77,905			76,686			72,209			79,231			81,086
Total liabilities	8,396,387			8,938,200			9,684,533			9,314,144			9,330,592
Commitments and contingent liabilities
Preferred stock	231,128			231,128			231,128			231,128			269,071
Common stock	520			518			518			518			517
Common stock, class B non-voting non-convertible	5			5			5			5			4
Additional paid-in capital	627,306			626,608			625,834			624,789			623,372
Retained earnings	146,039			136,943			140,952			140,971			143,880
Treasury stock	(28,786		)	(28,786		)	(28,786		)	(28,786		)	(28,786		)
Accumulated other comprehensive loss, net	(12,668		)	(18,091		)	(24,117		)	(21,947		)	(19,370		)
Total stockholders’ equity	963,544			948,325			945,534			946,678			988,688
Total liabilities and stockholders’ equity	$	9,359,931		$	9,886,525		$	10,630,067		$	10,260,822		$	10,319,280

Banc of California, Inc.

Consolidated Statements of Operations

(Dollars in thousands, except per share data)



	Three Months Ended
	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Interest and dividend income
Loans, including fees	$	89,159		$	90,558		$	88,258		$	84,795		$	81,307
Securities	12,457			17,841			19,882			20,599			21,455
Other interest-earning assets	2,424			2,313			2,990			2,380			2,423
Total interest and dividend income	104,040			110,712			111,130			107,774			105,185
Interest expense
Deposits	28,598			31,443			28,972			25,154			20,315
Federal Home Loan Bank advances	8,289			9,081			9,068			8,996			9,539
Securities sold under repurchase agreements	16			18			25			47			211
Notes payable and other interest-bearing liabilities	2,357			2,362			2,383			2,385			2,356
Total interest expense	39,260			42,904			40,448			36,582			32,421
Net interest income	64,780			67,808			70,682			71,192			72,764
(Reversal of) provision for loan and lease losses	(1,987		)	2,512			6,653			1,410			2,653
Net interest income after provision for loan and lease losses	66,767			65,296			64,029			69,782			70,111
Noninterest income
Customer service fees	1,434			1,515			1,786			1,446			1,491
Loan servicing income	121			118			22			439			948
Impairment loss on investment securities	—			—			(3,252		)	—			—
Net gain on sale of securities available for sale	—			208			—			13			278
Net gain on sale of loans	2,826			1,553			873			279			821
All other income (loss)	(6,671		)	2,901			3,019			2,647			4,523
Total noninterest income	(2,290		)	6,295			2,448			4,824			8,061
Noninterest expense
Salaries and employee benefits	27,506			28,439			24,587			24,832			29,440
Occupancy and equipment	7,955			7,686			8,064			8,213			7,883
Professional fees (reimbursement)	(2,903		)	11,041			6,206			11,966			6,303
Data processing	1,672			1,496			1,733			1,884			1,678
Advertising	2,048			2,057			3,371			3,152			2,864
Regulatory assessments	2,136			2,482			1,252			2,138			2,196
Reversal of provision for loan repurchases	(61		)	(116		)	(122		)	(360		)	(218		)
Amortization of intangible assets	621			620			644			693			827
Restructuring (reversal) expense	(158		)	2,795			(105		)	553			3,983
All other expenses	5,126			3,385			3,153			5,322			5,775
Total noninterest expense excluding loss (gain) on investments in alternative energy partnerships	43,942			59,885			48,783			58,393			60,731
(Gain) loss on investments in alternative energy partnerships	(355		)	1,950			786			2,484			1,808
Total noninterest expense	43,587			61,835			49,569			60,877			62,539
Income from continuing operations before income taxes	20,890			9,756			16,908			13,729			15,633
Income tax expense	4,308			2,719			6,117			3,301			1,779
Income from continuing operations	16,582			7,037			10,791			10,428			13,854

Income from discontinued operations before income taxes	—			—			347			924			1,281
Income tax expense	—			—			100			256			355
Income from discontinued operations	—			—			247			668			926
Net income	16,582			7,037			11,038			11,096			14,780
Preferred stock dividends	4,308			4,308			4,308			4,970			5,113



Income allocated to participating securities	271		—		—		—		86
Participating securities dividends	94		202		203		202		203
Impact of preferred stock redemption	—		—		—		2,307		—
Net income available to common stockholders	$	11,909	$	2,527	$	6,527	$	3,617	$	9,378
Basic earnings per common share
Income from continuing operations	$	0.23	$	0.05	$	0.12	$	0.06	$	0.17
Income from discontinued operations	—		—		0.01		0.01		0.02
Net income	$	0.23	$	0.05	$	0.13	$	0.07	$	0.19
Diluted earnings per common share
Income from continuing operations	$	0.23	$	0.05	$	0.12	$	0.06	$	0.16
Income from discontinued operations	—		—		0.01		0.01		0.02
Net income	$	0.23	$	0.05	$	0.13	$	0.07	$	0.18
Weighted average number of common shares outstanding
Basic	50,857,137		50,676,722		50,651,805		50,656,076		50,593,429
Diluted	50,964,956		50,846,722		50,812,874		50,899,464		50,919,091
Dividends declared per common share	$	0.06	$	0.13	$	0.13	$	0.13	$	0.13

Banc of California, Inc.

Selected Financial Data



	Three Months Ended
	June 30, 2019		March 31, 2019		December 31, 2018		September 30, 2018		June 30, 2018
Profitability and other ratios of consolidated operations
Return on average assets ⁽¹⁾	0.69	%	0.28	%	0.43	%	0.43	%	0.58	%
Return on average equity ⁽¹⁾	6.91	%	2.98	%	4.56	%	4.40	%	5.92	%
Return on average tangible common equity ⁽²⁾	7.43	%	1.91	%	4.19	%	2.49	%	6.03	%
Dividend payout ratio ⁽³⁾	26.09	%	260.00	%	100.00	%	185.71	%	68.42	%
Net interest spread	2.50	%	2.47	%	2.56	%	2.62	%	2.75	%
Net interest margin ⁽¹⁾	2.86	%	2.81	%	2.88	%	2.93	%	3.01	%
Noninterest income (loss) to total revenue ⁽⁴⁾	(3.66	)%	8.49	%	3.60	%	7.42	%	11.16	%
Noninterest income (loss) to average total assets ⁽¹⁾	(0.10	)%	0.25	%	0.10	%	0.22	%	0.36	%
Noninterest expense to average total assets ⁽¹⁾	1.82	%	2.43	%	1.92	%	2.38	%	2.45	%
Efficiency ratio ⁽²⁾⁽⁵⁾	69.75	%	83.44	%	67.47	%	79.15	%	76.17	%
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships ⁽²⁾⁽⁵⁾	67.84	%	83.00	%	67.09	%	77.88	%	73.50	%
Average loans held-for-investment to average deposits	104.38	%	100.45	%	97.40	%	97.00	%	98.63	%
Average securities available-for-sale to average total assets	13.58	%	17.00	%	19.85	%	21.28	%	22.27	%
Average stockholders’ equity to average total assets	10.02	%	9.29	%	9.38	%	9.85	%	9.78	%

Ratios are presented on an annualized basis.

The ratios are determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). See Non-GAAP measures section for reconciliation of the calculation.

The ratio is calculated by dividing dividends declared per common share by basic earnings per common share.

Total revenue is equal to the sum of net interest income before provision for loan and lease losses and noninterest income (loss).

The ratios are calculated by dividing noninterest expense by the sum of net interest income before provision for loan and lease losses and noninterest income (loss).

Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)



	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Loans and ALLL by loan origination type
Loan breakdown by origination type
Originated loans	$	6,181,583		$	6,991,056		$	7,105,171		$	6,683,683		$	6,446,127
Acquired loans not impaired at acquisition	537,987			566,144			595,702			569,610			589,877
Total loans	$	6,719,570		$	7,557,200		$	7,700,873		$	7,253,293		$	7,036,004
ALLL breakdown by origination type
Originated loans	$	58,135		$	63,003		$	61,256		$	56,672		$	55,534
Acquired loans not impaired at acquisition	1,388			882			937			1,110			1,144
Total ALLL	$	59,523		$	63,885		$	62,193		$	57,782		$	56,678
Discount on acquired loans not impaired at acquisition	$	10,680		$	11,184		$	11,645		$	12,311		$	12,932
Percentage of ALLL to:
Originated loans	0.94		%	0.90		%	0.86		%	0.85		%	0.86		%
Originated loans and acquired loans not impaired at acquisition	0.89		%	0.85		%	0.81		%	0.80		%	0.81		%
Total loans	0.89		%	0.85		%	0.81		%	0.80		%	0.81		%

Banc of California, Inc.

Average Balance, Average Yield Earned, and Average Cost Paid

(Dollars in thousands)



	Three Months Ended
	June 30, 2019							March 31, 2019							December 31, 2018
	Average					Yield		Average					Yield		Average					Yield
	Balance			Interest		/ Cost		Balance			Interest		/ Cost		Balance			Interest		/ Cost
Interest earning assets
Loans held-for-sale ⁽¹⁾	$	47,233		$	265	2.25	%	$	31,374		$	228	2.95	%	$	33,243		$	221	2.64	%
SFR mortgage	2,059,704			21,390		4.17	%	2,312,900			24,062		4.22	%	2,260,205			23,585		4.14	%
Commercial real estate, multifamily, and construction	3,406,672			39,659		4.67	%	3,387,698			38,117		4.56	%	3,246,860			37,403		4.57	%
Commercial and industrial, SBA, and lease financing	1,872,289			26,940		5.77	%	1,920,220			27,235		5.75	%	1,791,708			26,219		5.81	%
Other consumer	59,806			905		6.07	%	62,558			916		5.94	%	68,479			990		5.74	%
Gross loans and leases	7,445,704			89,159		4.80	%	7,714,750			90,558		4.76	%	7,400,495			88,418		4.74	%
Securities	1,304,876			12,457		3.83	%	1,751,509			17,841		4.13	%	2,032,632			19,882		3.88	%
Other interest-earning assets	342,908			2,424		2.84	%	321,823			2,313		2.91	%	318,419			2,990		3.73	%
Total interest-earning assets	9,093,488			104,040		4.59	%	9,788,082			110,712		4.59	%	9,751,546			111,290		4.53	%
Allowance for loan losses	(63,046		)					(61,924		)					(58,099		)
BOLI and non-interest earning assets	580,133							575,559							544,302
Total assets	$	9,610,575						$	10,301,717						$	10,237,749

Interest-bearing liabilities
Savings	$	1,083,571		$	4,950	1.83	%	$	1,201,802		$	5,480	1.85	%	$	1,279,155		$	5,663	1.76	%
Interest-bearing checking	1,580,165			4,554		1.16	%	1,554,846			4,525		1.18	%	1,666,884			4,916		1.17	%
Money market	853,007			3,902		1.83	%	887,538			4,128		1.89	%	803,157			3,168		1.56	%
Certificates of deposit	2,537,060			15,192		2.40	%	2,982,980			17,310		2.35	%	2,759,665			15,225		2.19	%
Total interest-bearing deposits	6,053,803			28,598		1.89	%	6,627,166			31,443		1.92	%	6,508,861			28,972		1.77	%
FHLB advances	1,287,121			8,289		2.58	%	1,422,100			9,081		2.59	%	1,447,348			9,068		2.49	%
Securities sold under repurchase agreements	2,173			16		2.95	%	2,350			18		3.11	%	3,116			25		3.18	%
Long-term debt and other interest-bearing liabilities	174,161			2,357		5.43	%	174,230			2,362		5.50	%	174,281			2,383		5.42	%
Total interest-bearing liabilities	7,517,258			39,260		2.09	%	8,225,846			42,904		2.12	%	8,133,606			40,448		1.97	%
Noninterest-bearing deposits	1,034,205							1,021,741							1,054,790
Non-interest-bearing liabilities	96,179							97,430							89,111
Total liabilities	8,647,642							9,345,017							9,277,507
Total stockholders’ equity	962,933							956,700							960,242
Total liabilities and stockholders’ equity	$	9,610,575						$	10,301,717						$	10,237,749

Net interest income/spread				$	64,780	2.50	%				$	67,808	2.47	%				$	70,842	2.56	%
Net interest margin						2.86	%						2.81	%						2.88	%

Ratio of interest-earning assets to interest-bearing liabilities	120.97		%					118.99		%					119.89		%
Total deposits	$	7,088,008		$	28,598	1.62	%	$	7,648,907		$	31,443	1.67	%	$	7,563,651		$	28,972	1.52	%
Total funding ⁽²⁾	$	8,551,463		$	39,260	1.84	%	$	9,247,587		$	42,904	1.88	%	$	9,188,396		$	40,448	1.75	%

Includes loans held-for-sale of discontinued operations for the three months ended December 31, 2018.

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



	Three Months Ended
	September 30, 2018							June 30, 2018
	Average					Yield		Average					Yield
	Balance			Interest		/ Cost		Balance			Interest		/ Cost
Interest earning assets
Loans held-for-sale ⁽¹⁾	$	42,754		$	263	2.44	%	$	54,791		$	328	2.40	%
SFR mortgage	2,222,602			23,461		4.19	%	2,223,608			22,790		4.11	%
Commercial real estate, multifamily, and construction	3,091,706			35,838		4.60	%	2,989,014			33,736		4.53	%
Commercial and industrial, SBA, and lease financing	1,739,711			24,382		5.56	%	1,707,478			23,664		5.56	%
Other consumer	69,600			981		5.59	%	80,188			978		4.89	%
Gross loans and leases	7,166,373			84,925		4.70	%	7,055,079			81,496		4.63	%
Securities	2,163,037			20,599		3.78	%	2,279,416			21,455		3.78	%
Other interest-earning assets	335,160			2,380		2.82	%	392,342			2,423		2.48	%
Total interest-earning assets	9,664,570			107,904		4.43	%	9,726,837			105,374		4.35	%
Allowance for loan losses	(56,730		)					(54,903		)
BOLI and non-interest earning assets	554,636							565,224
Total assets	$	10,162,476						$	10,237,158

Interest-bearing liabilities
Savings	1,231,696			5,122		1.65	%	1,055,693			3,886		1.48	%
Interest-bearing checking	1,789,679			5,054		1.12	%	1,822,856			4,182		0.92	%
Money market	966,165			3,455		1.42	%	1,134,280			3,689		1.30	%
Certificates of deposit	2,332,181			11,523		1.96	%	2,079,932			8,558		1.65	%
Total interest-bearing deposits	6,319,721			25,154		1.58	%	6,092,761			20,315		1.34	%
FHLB advances	1,528,674			8,996		2.33	%	1,827,307			9,539		2.09	%
Securities sold under repurchase agreements	6,418			47		2.91	%	29,907			211		2.83	%
Long-term debt and other interest-bearing liabilities	174,361			2,385		5.43	%	174,296			2,356		5.42	%
Total interest-bearing liabilities	8,029,174			36,582		1.81	%	8,124,271			32,421		1.60	%
Noninterest-bearing deposits	1,023,890							1,004,502
Non-interest-bearing liabilities	108,593							107,529
Total liabilities	9,161,657							9,236,302
Total stockholders’ equity	1,000,819							1,000,856
Total liabilities and stockholders’ equity	$	10,162,476						$	10,237,158

Net interest income/spread				$	71,322	2.62	%				$	72,953	2.75	%
Net interest margin						2.93	%						3.01	%

Ratio of interest-earning assets to interest-bearing liabilities	120.37		%					119.73		%
Total deposits	$	7,343,611		$	25,154	1.36	%	$	7,097,263		$	20,315	1.15	%
Total funding ⁽²⁾	$	9,053,064		$	36,582	1.60	%	$	9,128,773		$	32,421	1.42	%

Includes loans held-for-sale of discontinued operations.

Banc of California, Inc.

Consolidated Operations

(Dollars in thousands, except per share data)

Under Item 10(e) of SEC Regulation S-K, public companies disclosing financial measures in filings with the SEC that are not calculated in accordance with GAAP must also disclose, along with each non-GAAP financial measure, certain additional information, including a presentation of the most directly comparable GAAP financial measure, a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure, as well as a statement of the reasons why the company's management believes that presentation of the non-GAAP financial measure provides useful information to investors regarding the company's financial condition and results of operations and, to the extent material, a statement of the additional purposes, if any, for which the company's management uses the non-GAAP financial measure.

Return on average tangible common equity and efficiency ratio, as adjusted, tangible common equity to tangible assets, and tangible common equity per common share constitute supplemental financial information determined by methods other than in accordance with GAAP. 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, goodwill, and other intangible assets from stockholders' equity. Tangible assets is calculated by subtracting goodwill and other intangible assets from total assets. Banking regulators also exclude goodwill and other intangible assets from stockholders' equity when assessing the capital adequacy of a financial institution.

Adjusted efficiency ratio is calculated by subtracting loss on investments in alternative energy partnerships from noninterest expense and adding total pre-tax return, which includes the loss on investments in alternative energy partnerships, to the sum of net interest income and noninterest income (total revenue). Management believes the presentation o these financial measures adjusting the impact of these items provides useful supplemental information that is essential to a proper understanding of the final 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 with financial measures defined by GAAP.



	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Tangible common equity, and tangible common equity to tangible assets ratio
Total assets	$	9,359,931		$	9,886,525		$	10,630,067		$	10,260,822		$	10,319,280
Less goodwill	(37,144		)	(37,144		)	(37,144		)	(37,144		)	(37,144		)
Less other intangible assets	(5,105		)	(5,726		)	(6,346		)	(6,990		)	(7,683		)
Tangible assets ⁽¹⁾	$	9,317,682		$	9,843,655		$	10,586,577		$	10,216,688		$	10,274,453

Total stockholders' equity	$	963,544		$	948,325		$	945,534		$	946,678		$	988,688
Less goodwill	(37,144		)	(37,144		)	(37,144		)	(37,144		)	(37,144		)
Less other intangible assets	(5,105		)	(5,726		)	(6,346		)	(6,990		)	(7,683		)
Tangible equity ⁽¹⁾	921,295			905,455			902,044			902,544			943,861
Less preferred stock	(231,128		)	(231,128		)	(231,128		)	(231,128		)	(269,071		)
Tangible common equity ⁽¹⁾	$	690,167		$	674,327		$	670,916		$	671,416		$	674,790

Total stockholders' equity to total assets	10.29		%	9.59		%	8.89		%	9.23		%	9.58		%
Tangible equity to tangible assets ⁽¹⁾	9.89		%	9.20		%	8.52		%	8.83		%	9.19		%
Tangible common equity to tangible assets ⁽¹⁾	7.41		%	6.85		%	6.34		%	6.57		%	6.57		%

Common shares outstanding	50,397,769			50,315,490			50,172,018			50,180,607			50,142,955
Class B non-voting non-convertible common shares outstanding	477,321			477,321			477,321			477,321			403,778
Total common shares outstanding	50,875,090			50,792,811			50,649,339			50,657,928			50,546,733

Tangible common equity per common share ⁽¹⁾	$	13.57		$	13.28		$	13.25		$	13.25		$	13.35
Book value per common share	$	14.40		$	14.12		$	14.10		$	14.13		$	14.24

(1) Non-GAAP measure.

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)



	Three Months Ended
	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Return on tangible common equity
Average total stockholders' equity	$	962,933		$	956,700		$	960,242		$	1,000,819		$	1,000,856
Less average preferred stock	(231,128		)	(231,128		)	(231,128		)	(260,822		)	(269,071		)
Less average goodwill	(37,144		)	(37,144		)	(37,144		)	(37,144		)	(37,144		)
Less average other intangible assets	(5,503		)	(6,128		)	(6,731		)	(7,412		)	(8,110		)
Average tangible common equity ⁽¹⁾	$	689,158		$	682,300		$	685,239		$	695,441		$	686,531

Net income	$	16,582		$	7,037		$	11,038		$	11,096		$	14,780
Less preferred stock dividends and impact of preferred stock redemption	(4,308		)	(4,308		)	(4,308		)	(7,277		)	(5,113		)
Add amortization of intangible assets	621			620			644			693			827
Add impairment on intangible assets	—			—			—			—			—
Less tax effect on amortization and impairment of intangible assets	(130		)	(130		)	(135		)	(146		)	(174		)
Net income available to common stockholders ⁽¹⁾	$	12,765		$	3,219		$	7,239		$	4,366		$	10,320

Return on average equity	6.91		%	2.98		%	4.56		%	4.40		%	5.92		%
Return on average tangible common equity ⁽¹⁾	7.43		%	1.91		%	4.19		%	2.49		%	6.03		%

Statutory tax rate utilized for calculating tax effect on amortization and impairment of intangible assets	21.00		%	21.00		%	21.00		%	21.00		%	21.00		%



	Three Months Ended
	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships
Noninterest expense	$	43,587		$	61,835		$	49,578		$	60,977		$	62,554
Gain (loss) on investments in alternative energy partnerships	355			(1,950		)	(786		)	(2,484		)	(1,808		)
Adjusted noninterest expense ⁽¹⁾	$	43,942		$	59,885		$	48,792		$	58,493		$	60,746

Net interest income	$	64,780		$	67,808		$	70,842		$	71,322		$	72,953
Noninterest income	(2,290		)	6,295			2,644			5,718			9,168
Total revenue	62,490			74,103			73,486			77,040			82,121
Tax credit from investments in alternative energy partnerships	1,680			—			—			412			1,912
Deferred tax expense on investments in alternative energy partnerships	(176		)	—			—			(43		)	(211		)
Tax effect on tax credit and deferred tax expense	426			—			26			180			631
Gain (loss) on investments in alternative energy partnerships	355			(1,950		)	(786		)	(2,484		)	(1,808		)
Total pre-tax adjustments for investments in alternative energy partnerships	2,285			(1,950		)	(760		)	(1,935		)	524
Adjusted total revenue ⁽¹⁾	$	64,775		$	72,153		$	72,726		$	75,105		$	82,645
Efficiency ratio ⁽¹⁾	69.75		%	83.44		%	67.47		%	79.15		%	76.17		%
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships ⁽¹⁾	67.84		%	83.00		%	67.09		%	77.88		%	73.50		%
Effective tax rate utilized for calculating tax effect on tax credit and deferred tax expense	22.07		%	27.00		%	27.42		%	32.81		%	27.07		%

(1) Non-GAAP measure.

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)



	Noninterest Expense			Q2 2019 non-core adjustments			Q2 Core Operating Expense ⁽¹⁾
Salaries and employee benefits	$	27,506		$	—		$	27,506
Occupancy and equipment	7,955			(797		)	7,158
Professional fees (reimbursement)	(2,903		)	6,214			3,311
Data processing	1,672			—			1,672
Advertising	2,048			—			2,048
Regulatory assessments	2,136			—			2,136
Reversal of provision for loan repurchases	(61		)	—			(61		)
Amortization of intangible assets	621			—			621
Restructuring (reversal) expense	(158		)	158			—
All other expenses	5,126			—			5,126
Total noninterest expense excluding loss (gain) on investments in alternative energy partnerships	43,942			5,575			49,517
(Gain) loss on investments in alternative energy partnerships	(355		)	—			(355		)
Total noninterest expense	$	43,587		$	5,575		$	49,162

(1) Non-GAAP measure.

Exhibit 99.2 Investor Presentation 2019 Second Quarter Earnings July 25, 2019

Forward-looking Statements When used in this presentation and in documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “believe,” “will,” “should,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. These statements may relate to future financial performance, strategic plans or objectives, revenue, expense or earnings projections, or other financial items of Banc of California Inc. and its affiliates (“BANC,” the “Company,” “we,” “us” or “our”). By their nature, these statements are subject to numerous uncertainties that could cause actual results to differ materially from those anticipated in the statements. Factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to, the following: (i) an ongoing investigation by the SEC as well as any related litigation or other litigation may result in adverse findings, reputational damage, the imposition of sanctions, increased costs, the diversion of management time and resources, and other negative consequences; (ii) the costs and effects of litigation generally, including legal fees and other expenses, settlements and judgments; (iii) the risk that our performance may be adversely affected by the CEO transition we have recently undergone; (iv) the risk that the benefits we realize from exiting the third party mortgage origination and brokered single-family residential lending business will be less than anticipated and that the costs we incur from exiting that business will be greater than anticipated; (v) the risk that we will not be successful in the implementation of our capital utilization strategy and our other strategies for transitioning to a traditional community bank; (vi) risks that the Company’s merger and acquisition transactions may disrupt current plans and operations and lead to difficulties in customer and employee retention, risks that the costs, fees, expenses and charges related to these transactions could be significantly higher than anticipated and risks that the expected revenues, cost savings, synergies and other benefits of these transactions might not be realized to the extent anticipated, within the anticipated timetables, or at all; (vii) 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 but not limited to the effectiveness of our underwriting practices and the risk of fraud, any of which credit and operational risks may lead to increased loan and lease delinquencies, losses and nonperforming assets in our loan and lease portfolio, and may result in our allowance for loan and lease losses not being adequate to cover actual losses and require us to materially increase our loan and lease loss reserves; (viii) the quality and composition of our securities portfolio; (ix) changes in general economic conditions, either nationally or in our market areas, or changes in financial markets; (x) continuation of or changes in the short-term interest rate environment, changes in the levels of general interest rates, volatility in the interest rate environment, the relative differences between short- and long-term interest rates, deposit interest rates, our net interest margin and funding sources; (xi) fluctuations in the demand for loans and leases, the number of unsold homes and other properties and fluctuations in commercial and residential real estate values in our market area; (xii) our ability to develop and maintain a strong core deposit base or other low cost funding sources necessary to fund our activities; (xiii) results of examinations of us by regulatory authorities and the possibility that any such regulatory authority may, among other things, limit our business activities, require us to change our business mix, increase our allowance for loan and lease losses, write-down asset values or increase our capital levels, or affect our ability to borrow funds or maintain or increase deposits, any of which could adversely affect our liquidity and earnings; (xiv) legislative or regulatory changes that adversely affect our business, including, without limitation, changes in tax laws and policies and changes in regulatory capital or other rules, and the availability of resources to address or respond to such changes; (xv) our ability to control operating costs and expenses; (xvi) staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; (xvii) the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses; (xviii) errors in estimates of the fair values of certain of our assets and liabilities, which may result in significant changes in valuation; (xix) the network and computer systems on which we depend could fail or experience a security breach; (xx) our ability to attract and retain key members of our senior management team; (xxi) increased competitive pressures among financial services companies; (xxii) changes in consumer spending, borrowing and saving habits; (xxiii) the effects of severe weather, natural disasters, acts of war or terrorism and other external events on our business; (xxiv) the ability of key third-party providers to perform their obligations to us; (xxv) changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board or their application to our business, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; (xxvi) the transition to a new accounting standard adopted by the Financial Accounting Standards Board, referred to as Current Expected Credit Loss, which will require financial institutions to determine periodic estimates of lifetime expected credit losses on loans, and provide for the expected credit losses as allowances for loan losses; (xxvii) share price volatility and reputational risks, related to, among other things, speculative trading and certain traders shorting our common shares and attempting to generate negative publicity about us; (xxviii) war or terrorist activities; (xix) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described from time to time in other documents that we file with or furnish to the SEC; and (xxx) that the tender offer described herein occurs on such terms or at all. You should not place undue reliance on forward-looking statements, and except as required by law we undertake no obligation to update any such statements to reflect circumstances or events that occur after the date on which the forward-looking statement is made. This presentation is neither an offer to purchase nor a solicitation of an offer to sell securities. The tender offer for the outstanding depositary shares representing Banc of California, Inc.’s 7.00% Non- Cumulative Perpetual Preferred Stock, Series E and its 7.375% Non-Cumulative Perpetual Preferred Stock, Series D described in this press release is being made pursuant to an Offer to Purchase and related materials that Banc of California, Inc. has filed or will file with the Securities and Exchange Commission (the “SEC”) pursuant to a Schedule TO. The Schedule TO, Offer to Purchase, a related letter of transmittal and other tender offer documents contain important information that should be read carefully before any decision is made with respect to the tender offer. These materials (and all other documents Banc of California, Inc. has filed with the SEC) are available at no charge on the SEC's website at www.sec.gov. 1

Second Quarter 2019 Highlights Continued Progress Towards a Relationship Based Commercial Banking Platform Improved  Second quarter average cost of total deposits decreased by 5bps from the first quarter Funding Costs  Total cost of funds improved 4bps during the quarter to 1.84%  Held for investment loans decreased by $838 million during Q2 De-emphasized – Sold $178 million multifamily loans and $131 million of single-family loans – $574 million of multifamily loans were classified as HFS in Q2 and hedged to be securitized in Low Margin Loan Q3. Gain on securitization in Q3 will normalize $9.6MM hedge loss. Products  Gross loan commitment originations of $599 million at an average production yield of 5.25% – Continued to de-emphasize brokered loan originations in favor of relationship-based loans Normalized  Reduced securities by $304 million Investment – Collateralized loan obligations (“CLOs”) declined by $298 million to $737 million at quarter end Portfolio – Securities as a percentage of interest earnings assets are now at 14% Continued  Noninterest expenses totaled $43.6 million Expense  Non-core benefit of $6.4 million for items related to ongoing legal and indemnification Management matters; total non-core net benefit of $5.6 million during the quarter  Common Equity Tier 1 ratio of 10.41%; TCE / TA ratio increased 56bps to 7.41% Credit and  ALLL / Loans1 of 0.89%, up from 0.85% last quarter Capital  NPLs & OREO / Loans1 of 0.43%, up from 0.38% in the first quarter  Net charge-offs totaled $2.4 million Bolstered  Ido Dotan – EVP, General Counsel and Corporate Secretary Executive Bench  Lynn Sullivan – EVP, Chief Risk Officer Strength 1 Held for investment 2

Three Key Drivers of Community Banking Business Relationship-Based Strategy Will Enhance Franchise Value Lower Deposit Costs through Relationship Focus • Increase relationship-based lending with deposits and reduce reliance on broker-driven loans • Re-price down high-cost retail CDs and other high cost deposit offerings, and release maturing brokered deposits, all in connection with asset sales • Best in class treasury management to attract and retain clients Right-Size the Balance Sheet • Eliminate non franchise-enhancing assets and lines of business • Continue to reduce the size of the CLO portfolio • Sell down lower yielding multifamily and SFR portfolios, execute on multifamily securitization and reduce reliance on wholesale funding • Optimize the capital structure; launch of our preferred stock tender for up to $75M aggregate purchase price Improve Operational Efficiencies to Reduce Expense Burden • Right-size expenses to fit asset size • Deploy technology to better serve customers and improve efficiency 3

Right-Sizing the Balance Sheet: Assets Lending Strategy Shifting Toward Relationship Based Loans Other¹ 4Q18 Other 2Q19 8% 1% C&I C&I Securities Securities 21% 24% 21% 14% CRE 11% CRE SFR 13% SFR 23% 24% Multi Multi 23% 19% YTD Movements Loans and Securities 2Q19 Avg. 2Q19 Ending • ($ in millions) $825 million reduction in Securities portfolio Yields Balances 2 • $642 million reduction in Multifamily portfolio Securities 3.83% $1,168 • $344 million reduction in SFR Mortgage portfolio Multifamily 4.40% $1,599 SFR Mortgage 4.17% $1,961 1 Includes $598 million of HFS loans 2 Reduction in Multifamily includes the reclassification of $574 million to HFS for upcoming securitization 4

Relationship Lending Focus Enhances Franchise Value De-emphasizing Low Margin, non-Relationship Lending to Drive Portfolio Yields Overall Portfolio Yields Increased 4bps to 4.80% With Lower SFR and MF Balances HFI Loan Production Yields vs. Portfolio Yields1 5.22% 5.26% 5.29% 5.25% 5.05% 4.74% 4.76% 4.80% 4.63% 4.70% $7,701 $7,253 $7,557 $7,036 $71 $63 $6,720 $76 $73 $1,071 $1,077 $1,005 $1,023 $61 $1,065 $2,013 $1,982 $1,821 $1,745 $2,033 $2,241 $1,960 $2,112 $2,333 $1,598 $2,174 $2,300 $2,305 $2,103 $1,961 2Q18 3Q18 4Q18 1Q19 2Q19 SFR MF C&I CRE² Other Portfolio Loan Yields New Production Loan Yields 1 Dollars in millions 2 CRE includes Construction 5

Right-Sizing the Balance Sheet: Liabilities Strategy Shifting to Lower Costing Relationship Based Deposits 4Q18 2Q19 FHLB FHLB¹ Demand 16% 22% Demand Deposit Deposit Checking Checking Non- 27% 32% Brokered Non- CDs Brokered 17% Savings/ CDs Savings/ Money 18% Money Brokered Market Brokered Market CDs 22% CDs 16% 5% 23% YTD Movements Deposits and FHLB 2Q19 2Q19 • $1,164 million reduction in Brokered CD’s ($ in millions) Ending Avg. Cost Balances • $175 million reduction in Non-Brokered CD’s Brokered CD’s 2.49% $379 • $305 million increase in FHLB Advances Non-Brokered CD’s 2.35% $1,479 FHLB Advances 2.58% $1,825 1 Pending securitization proceeds will be used to reduce FHLB advances 6

Deposit Base Showing Effects of Transformation Relationship Based Approach to Depository Services Expected to Reduce Future Cost of Deposits Reduction in Transactional Deposit Balances Resulted in 5bps Decrease in Cost of Deposits Deposit Composition1 1.67% 1.62% 1.52% 1.36% 1.15% $7,9161 $7,725 $7,136 $7,402 $1,655 $1,685 $1,355 $1,512 $6,292 $686 $988 $1,543 $1,295 $1,479 $379 $2,312 $2,126 $2,139 $2,051 $1,862 $1,778 $1,714 $1,556 $1,573 $1,578 $1,005 $1,062 $1,023 $1,121 $994 2Q18 3Q18 4Q18 1Q19 2Q19 Noninterest-bearing DDA Interest-bearing DDA Savings and Money Market Brokered CDs CDs Cost of Deposits 1 Dollars in millions 7

Net Interest Margin Trend at an Inflection Further NIM Improvement Expected to Occur Via Lower Cost of Deposits Average Interest-Earning Assets1 Net Interest Margin Components $9.8 $9.8 $9.1 $0.3 $0.3 $0.4 $2.0 $1.8 4.53% 4.59% 4.59% $1.3 4.35% 4.43% $7.4 $7.7 $7.4 3.01% 2.93% 2.88% 2.81% 2.86% 4Q18 1Q19 2Q19 HFI Loans Securities Other² Interest Income3 $110.7 1.67% 1.52% 1.62% 1.36% 1.15% ($5.2) $1.2 $104.0 ($2.7) 1Q19 Securities, Resi Mortgage Commercial 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 HFS, & Other - HFI Loans Earning Asset Yield Net Interest Margin Cost of Deposits 1 Dollars in billions 2 Includes loans held for sale and other interest-earning assets 8 3 Dollars in millions, consolidated operations

Expenses are Being Better Allocated to Asset Base Simplifying Operating Model and Delivering Operational Efficiencies Non-Core Adjustments to Reported Operating Expenses Noninterest Q2 Core Q2 Non-Core ($ in millions) Expenses – Operating Adjustments1 Reported Expenses1 Salaries and employee benefits $ 27.5 $ 27.5 NIE / Average Assets3 Occupancy and equipment 8.0 (0.8) 7.2 Professional fees (2.9) 6.2 3.3 2.37% 2.30% 2.33% Data processing 1.7 1.7 2.06% 1.91% Advertising 2.0 2.0 1.83% Regulatory assessments 2.1 2.1 Reversal of provision for loan repurchases (0.1) (0.1) Amortization of intangible assets 0.6 0.6 Restructuring expense (0.2) 0.2 - All other expense 5.1 5.1 Total Noninterest Expense (ex-loss on investments in alternative $ 43.9 $ 5.6 $ 49.5 2Q18 3Q18 4Q18 1Q19 2Q19 2Q19 energy partnerships) Operating¹ Gain on investments in alternative 0.4 energy partnerships2 Total Noninterest Expense (reported) $ 43.6 1 Reported operations operating expense less non-core adjustments. Non-GAAP measure: Reconciliation table above 2 Gain on investments in alternative energy partnerships create tax credits to offset expense incurred 9 3 Core operations noninterest expense excluding loss on investments in alternative energy partnerships, annualized, over average consolidated assets

Developing Recurring and Sustainable Earnings Profile Q2 Included some Non-Core Adjustments to Reported Operations Q2 Earnings from Core ($ in millions, except for EPS) Reported Q2 Adjustments1 Operations2 Normalized Tax Rate at 20% Net Interest Income $ 64.8 $ - $ 64.8 Provision for loan and lease losses (2.0) - (2.0) Total noninterest income (2.3) 9.6 7.3 Total noninterest expense 43.9 5.6 49.4 (ex-loss on investments in alternative energy partnerships) Gain on investments in alternative energy partnerships3 0.4 (0.4) - Total noninterest expense 43.5 5.9 49.5 Pre-tax income 20.9 3.7 24.6 Income tax expense4 4.3 0.6 4.9 Net income 16.6 3.1 19.7 Preferred dividends and participating securities allocation and dividends 4.7 4.3 Net income available to common stockholders $ 11.9 $ 3.1 $ 15.0 Diluted earnings per total common share $ 0.23 $ 0.06 $ 0.29 Diluted EPS – Adjusted Operations $0.06 Adjusted for non-core items $0.29 Reported $0.23 2Q19 Reported Adjustments 2Q19 Adjusted 1 Includes $9.6M hedge loss, other non-core items, loss on investments in alternative energy partnerships, and income tax expense required to reach a normalized rate of 20% 2 Non-GAAP measure: Reconciliation table above 3 Gain on investments in alternative energy partnerships create tax credits to offset expense incurred 10 4 Normalized Q2 adjustments and Q2 operating earnings from core operations tax rate to 20%

Maintaining Strong Asset Quality Relationship Banking Focus Increases Asset Underwriting Transparency NPLs & OREO1 NPAs / Equity 0.36% 0.38% 0.33% 0.43% 0.29% 3.0% 3.0% $28.1 $28.8 $26.0 2.7% 2.4% $23.0 $22.3 2.3% 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 NPLs & OREO NPLs & OREO / Loans and Leases Receivable ALLL2 and NPL Coverage Total Delinquent Loans / Total Loans 254% 226% 224% 207% 282% 0.79% 0.78% 0.89% 0.81% 0.80% 0.81% 0.85% 0.49% 0.53% 0.38% 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 ALLL / Total Loans ALLL / NPLs 1 NPL: Non-performing loans and leases. OREO: Other real estate owned. Dollars in millions, held for investment 2 ALLL: Allowance for loan and lease losses 11

Strengthening Capital Base Supports Business Strategy Right-Sizing the Balance Sheet has Improved Capital Ratios Across the Board Common Equity Tier 1 Ratio Tier 1 Risk-Based Capital Ratio 13.8% 13.9% 13.2% 12.8% 13.0% 13.4% 10.4% 11.0% 9.9% 9.8% 9.5% 9.7% 2Q18 3Q18 4Q18 1Q19 2Q19 2Q19 PF² 2Q18 3Q18 4Q18 1Q19 2Q19 2Q19 PF² Tangible Equity / Tangible Assets1 Tangible Common Equity / Tangible Assets1 9.9% 9.7% 7.9% 9.2% 8.8% 9.2% 7.4% 8.5% 6.9% 6.6% 6.6% 6.3% 2Q18 3Q18 4Q18 1Q19 2Q19 2Q19 PF² 2Q18 3Q18 4Q18 1Q19 2Q19 2Q19 PF² 1 Non-GAAP measure. Reconciliation on slide 20 2 Pro forma assumes that as of June 30, 2019, a $75mm aggregate preferred tender offer was completed at a 50/50 mix of D and E and at a price of $26.04 and $26.80 per share, respectively. There are no assurances that the tender offer transaction will be completed on these terms, if at all. Furthermore, the pro 12 forma assumes the $574 million multifamily Freddie Mac securitization was completed as of June 30, 2019.

Appendix

Rate Floors and Timing of Hybrid Rate Resets IRR Position is Slightly Liability Sensitive in a Decreasing Rate Environment Variable Rate HFI Loans, Collateralized Loan Obligations and Mortgage Backed Securities1 1 Month Distance to Floor 3 Month Libor 6 Month Libor 1 Year Libor Prime Other Index2 Total Libor 100+ bps $ 926.0 $ 0.4 $ 289.8 $ 20.2 $ 184.6 $ 50.6 $ 1,471.6 50 – 100 bps 43.5 - 24.6 - 9.7 44.1 121.9 25 – 50 bps 16.6 - 2.9 - 7.1 18.6 45.2 0 – 25 bps 0.8 - - - 13.2 14.8 28.8 Floor 15.3 - 16.9 5.4 3.8 91.4 132.8 No Floor 193.0 69.5 0.4 2.8 150.7 120.0 536.4 CLO – No Floor - 748.6 - - - - 748.6 MBS3 - - - - - 3.2 3.2 Variable Rate $ 1,195.2 $ 818.5 $ 334.6 $ 28.4 $ 369.1 $ 342.7 $ 3,088.5 HFI ARMs and CLOs Hybrid / Fixed Rate Loans and Mortgage Backed Securities1 1 Month Months to Reset 3 Month Libor 6 Month Libor 1 Year Libor Prime Other Index4 Total Libor > 0 <= 6 $ - $ - $ - $ 21.9 $ 0.3 $ 3.5 $ 25.7 > 6 <= 12 - - 0.8 34.8 - 20.7 56.3 > 12 <= 25 - - 36.9 194.4 7.8 24.0 263.1 > 24 4.7 - 894.2 2,185.6 9.7 38.1 3,132.3 Hybrid Rate Loans $ 4.7 $ - $ 931.9 $ 2,436.7 $ 17.8 $ 86.3 $ 3,477.4 Fixed Rate Loans - - - - - - 900.5 Fixed MBS - - - - - - 421.9 1 Dollars in millions 2 1 Year CMT 29.6%, 5 Year Swap 29.2%, COFI 26.5%, 12 MTA 5.5%, 5 Year CMT 2.8%, 10 Year CMT 1.9%, 3 Year CMT 1.6%, 7 Year Swap 1.5%, 2 Year FHLB SF .9%, 5 Year FHLB SF .2%, 7 Year CMT .2%, 1o Year Swap .1% 3 Two GNMA MBS indexed to CMT. Currently 100+ bps over floor 4 COFI 43.1%, 10 Year Swap 19.67%, 7 Year Swap 10.3%, 14 10 Year CMT 9.9%, 5 Year Swap 9.3%, 5 Year CMT 6.1%, 3 Year Swap 1.0%, 5 Year CMT .7%

Timing and Costs of Funding Liabilities Deposits and FHLB Borrowing Maturities1 Funding Type 0 <= 6 Months 7 <= 12 Months >12 <= 24 > 24 Months Total Balance Avg. Cost Balance Avg. Cost Balance Avg. Cost Balance Avg. Cost Balance Avg. Cost Money Market $ 800.9 1.71% - - - - - - $ 800.9 1.71% Demand Deposits 1,577.9 1.22% - - - - - - 1,577.9 1.22% NonInt Demand Deposits 993.7 0.00% - - - - - - 993.7 0.00% Savings 1,061.1 1.85% - - - - - - 1,061.1 1.85% CD's 1,098.5 2.31% 508.7 2.42% 229.5 2.58% 22.0 2.58% 1,858.7 2.38% FHLB 1,145.0 2.39% 24.0 2.40% 145.0 2.14% 511.0 2.90% 1,825.0 2.51% Total $ 6,697.1 1.57% $ 532.7 2.42% $ 374.5 2.42% $ 533.0 2.89% $ 8,117.3 1.75% 1 Dollars in millions 15

Securities Portfolio Balances, Composition and Yields Securities Portfolio Detail1 Amortized Amortized Duration 2Q Fair Value Book Yield Security Type Cost Cost 2Q19 Change 2Q19 2Q19 1Q19 2Q19 (years) Gov’t & Agency (Agency MBS) $ 449 $ 436 ($ 13) $ 429 2.50% 6.06 CLOs 1,047 749 (298) 737 4.24% 0.07 Total Securities 1,496 1,185 (311) 1,166 3.60% 2.28 Portfolio Profile1 Portfolio Average Balances and Yields2 Credit Rating Composition $2.3 $2.2 $2.0 AAA CLO $1.8 $24 AAA 3% 4.13% Gov't $1.3 3.88% AGC 3.78% 3.78% 37% 3.83% CLO AA 63% 97% 2Q18 3Q18 4Q18 1Q19 2Q19 AA CLO $713 Average Balances Average Yields 1 Dollars in millions. Values that are greater than $0.0 million (or 0.0%) but less than $0.5 million (or 0.5%) are not shown 2 Dollars in billions 16

BANC Fast Facts & Preferred Equity Capital Structure (Dollars in millions)1 2Q19 1Q19 4Q18 3Q18 2Q18 Total assets2 $ 9,360 $ 9,887 $ 10,630 $ 10,261 $ 10,319 Securities available-for-sale 1,168 1,471 1,993 2,060 2,297 Loans and leases receivable 6,720 7,557 7,701 7,253 7,036 Total deposits 6,292 7,725 7,917 7,402 7,136 Net interest income 64.8 67.8 70.7 71.2 72.8 Provision for loan and lease losses (2.0) 2.5 6.7 1.4 2.7 Total noninterest income (2.3) 6.3 2.4 4.8 8.1 Noninterest expense3,4 43.9 59.9 48.8 58.4 60.7 Loss on investments in alternative energy partnerships (0.3) 2.0 0.8 2.5 1.8 Total noninterest expense 43.6 61.8 49.6 60.9 62.5 Net Income 16.6 7.0 10.8 10.4 13.9 Diluted earnings per common share $ 0.23 $ 0.05 $ 0.12 $ 0.06 $ 0.16 Return on average assets2 0.69% 0.28% 0.43% 0.43% 0.58% Adjusted Efficiency Ratio2,5 67.84% 83.00% 67.09% 77.88% 73.50% Class / Amount Out Dividend Rate First Callable Preferred Equity CUSIP Issue Date Series ($000) / Coupon (%) Date Preferred Equity: Non-Cumulative, Perpetual E 05990K874 2/8/2016 125,000 7.000% 3/15/2021 Preferred Equity: Non-Cumulative, Perpetual D 05990K882 4/8/2015 115,000 7.375% 6/15/2020 Total Preferred Equity $240,000 1 All figures from Reported operations unless noted; dollars in millions unless noted per share or percentage 2 Consolidated operations; Efficiency ratio adjusted for including the pre-tax effect of investments in alternative energy partnerships 17 3 Excluding loss on investments in alternative energy partnerships 4 Non-GAAP measure. Reconciliation within table above 5 Non-GAAP measure. Reconciliation on slide 19

Non-GAAP Financial Information This presentation contains certain financial measures determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). These measures include noninterest expense from Core operations, operating expense from Core operations, noninterest expense to average assets, and diluted earnings per common share from Core operations, adjusted for non-core items, each excluding loss on investments in alternative energy partnerships and the latter three adjusted for non-core items. Management believes that these particular measures provide useful supplemental information in understanding our core operating performance. These measures should not be viewed as substitutes for measures determined in accordance with GAAP, nor are they necessarily comparable to non‐GAAP measures that may be presented by other companies. Reconciliations of these measures to measures determined in accordance with GAAP are contained on slides 9, 10, 17, 19-22 of this presentation. Non-GAAP measures in this presentation also include tangible equity to tangible assets, tangible common equity to tangible assets, return on average tangible common equity, and adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships. These particular measures are used by management in its analysis of the Company's capital strength and the performance of the Company’s businesses. Banking and financial institution regulators also exclude goodwill and other intangible assets from total stockholders' equity when assessing the capital adequacy of a financial institution. Management believes the presentation of these measures excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital and financial strength of the Company and the performance of its businesses. These measures should not be viewed as substitutes for results determined in accordance with GAAP, nor are they necessarily comparable to non- GAAP measures that may be presented by other companies. Reconciliations of these measures to measures determined in accordance with GAAP are contained on slides 19-22 of this presentation. 18

Non-GAAP Reconciliation Adjusted Efficiency Ratio Including the Pre-tax Effect of Investments in Alternative Energy Partnerships (Dollars in thousands) 2Q19 1Q19 4Q18 3Q18 2Q18 Noninterest expense $ 43,587 $ 61,835 $ 49,578 $ 60,977 $ 62,554 (Loss) gain on investments in alternative energy partnerships 355 (1,950) (786) (2,484) (1,808) Adjusted noninterest expense $ 43,942 $ 59,885 $ 48,792 $ 58,493 $ 60,746 Net interest income $ 64,780 $ 67,808 $ 70,842 $ 71,322 $ 72,953 Noninterest income (2,290) 6,295 2,644 5,718 9,168 Total revenue 62,490 74,103 73,486 77,040 82,121 Tax credit from investments in alternative energy partnerships 1,680 - - 412 1,912 Deferred tax expense on investments in alternative energy partnerships (176) - - (43) (211) Tax effect on tax credit and deferred tax expense 426 - 26 180 631 (Loss) gain on investments in alternative energy partnerships 355 (1,950) (786) (2,484) (1,808) Total pre-tax adjustments for investments in alternative energy partnerships 2,285 (1,950) (760) (1,935) 524 Adjusted total revenue $ 64,775 $ 72,153 $ 72,726 $ 75,105 $ 82,645 Efficiency ratio 69.75% 83.44% 67.47% 79.15% 76.17% Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships 67.84% 83.00% 67.09% 77.88% 73.50% Effective tax rate utilized for calculating tax effect on tax credit and deferred tax expense 22.07% 27.00% 27.42% 32.81% 27.07% 19

Non-GAAP Reconciliation Tangible Common Equity to Tangible Assets and Tangible Equity to Tangible Assets (Dollars in thousands) 2Q19 1Q19 4Q18 3Q18 2Q18 Tangible common equity to tangible assets ratio Total assets $ 9,359,931 $ 9,886,525 $ 10,630,067 $ 10,260,822 $ 10,319,280 Less goodwill (37,144) (37,144) (37,144) (37,144) (37,144) Less other intangible assets (5,105) (5,726) (6,346) (6,990) (7,683) Tangible assets $ 9,317,682 $ 9,843,655 $ 10,586,577 $ 10,216,688 $ 10,274,453 Total stockholders' equity $ 963,544 $ 948,325 $ 945,534 $ 946,678 $ 988,688 Less goodwill (37,144) (37,144) (37,144) (37,144) (37,144) Less other intangible assets (5,105) (5,726) (6,346) (6,990) (7,683) Tangible equity 921,295 905,455 902,044 902,544 943,861 Less preferred stock 231,128 (231,128) (231,128) (231,128) (269,071) Tangible common equity $ 690,167 $ 674,327 $ 670,916 $ 671,416 $ 674,790 Total stockholders' equity to total assets 10.29% 9.59% 8.89% 9.23% 9.58% Tangible equity to tangible assets 9.89% 9.20% 8.52% 8.83% 9.19% Tangible common equity to tangible assets 7.41% 6.85% 6.34% 6.57% 6.57% 20

Non-GAAP Reconciliation Return on Average Tangible Common Equity (Dollars in thousands) 2Q19 1Q19 4Q18 3Q18 2Q18 Return on tangible common equity Average total stockholders' equity $ 962,933 $ 956,700 $ 960,242 $1,000,819 $1,000,856 Less average preferred stock (231,128) (231,128) (231,128) (260,822) (269,071) Less average goodwill (37,144) (37,144) (37,144) (37,144) (37,144) Less average other intangible assets (5,503) (6,128) (6,731) (7,412) (8,110) Average tangible common equity $ 689,158 $ 682,300 $ 685,239 $ 695,441 $ 686,531 Net income $ 16,582 $ 7,037 $ 11,038 $ 11,096 $ 14,780 Less preferred stock dividends and impact of preferred stock redemption (4,308) (4,308) (4,308) (7,277) (5,113) Add amortization of intangible assets 621 620 644 693 827 Add impairment on intangible assets - - - - - Less tax effect on amortization and impairment of intangible assets (130) (130) (135) (146) (174) Net income available to common stockholders $ 12,765 $ 3,219 $ 7,239 $ 4,366 $ 10,320 Return on average equity 6.91% 2.98% 4.56% 4.40% 5.92% Return on average tangible common equity 7.43% 1.91% 4.19% 2.49% 6.03% Statutory tax rate utilized for calculating tax effect on amortization and impairment of intangible assets 21.00% 21.00% 21.00% 21.00% 21.00% 21

Non-GAAP Reconciliation Noninterest Expense / Average Assets (in millions) 2Q19 1Q19 4Q18 3Q18 2Q18 Operating Expense (NIE) Total noninterest expense $ 43.6 $ 61.8 $ 49.6 $ 60.9 $ 62.5 Less gain/(loss) on investments in alternative energy partnerships 0.4 (2.0) (0.8) (2.5) (1.8) Less non-core items 5.6 (5.8) 3.4 (8.0) (6.4) Salaries and employee benefits - - - - - Data processing fees (0.8) - - - - Professional fees 6.2 (3.0) 2.7 (5.9) (1.5) Restructuring expense 0.2 (2.8) 0.1 (0.6) (4.0) Other expense - - 0.6 (1.5) (0.9) Total operating expense (NIE) $ 49.5 $ 54.0 $ 52.2 $ 50.4 $ 54.3 Total operating expense (NIE) annualized $ 198.1 $ 216.1 $ 208.6 $ 201.8 $ 217.2 NIE1 / Average Assets 2.06% 2.10% 2.04% 1.99% 2.12% 1. Core operations noninterest expenses excluding loss on investments in alternative energy partnerships, annualized, over average consolidated assets 22