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Jared Wolff, President & CEO of Banc of California, commented, “Our third quarter results demonstrate the greater earnings power and improved profitability we have generated over the past two years as we continue to accelerate our growth in earning assets and increase operating leverage. Our teams continue to bring in high quality relationships throughout California and we are seeing a significant increase in commercial & industrial loan production, which helped generate a 16% annualized increase in total loans, excluding Paycheck Protection Program loans. Our deposit engine also continues to be highly productive in attracting new clients and expanding relationships with existing clients, which resulted in a 17% increase in noninterest-bearing deposits from the end of the prior quarter.”

Lynn Hopkins, Chief Financial Officer of Banc of California, said, “We continue to execute well on our strategic initiatives, which is resulting in positive trends across most of our key metrics. Our cost of deposits continues to decline, our net interest margin is increasing, our efficiency ratio is improving, and our non-performing loans are declining. We continue to have a high level of liquidity, capital and reserves, which positions us well to continue supporting the profitable growth of our franchise. Along with our continued organic growth and the synergies to be realized from the Pacific Mercantile Bancorp acquisition, we also have additional opportunities to reduce our deposit costs as we continue to improve our mix of deposits and, subject to regulatory approval, redeem preferred stock that will further accelerate earnings growth.”

Under the terms and conditions of the Merger Agreement, each outstanding share of PMBC common stock was converted into the right to receive 0.5 of a share of the Company's common stock. This resulted in the issuance of 11,856,713 shares of BOC common stock with an estimated fair value of $222.2 million based upon the $18.74 closing price of BANC’s common stock on October 18, 2021. In addition, at the effective time of the Merger, the Company paid cash for all outstanding PMBC share-based awards, including stock options and outstanding shares subject to unvested restricted stock awards for a total paid in cash at closing of $3.2 million based upon the volume weighted average common stock price of BANC on each of the last 20 trading days ending on the fifth trading day prior to the closing of the Merger. The aggregate purchase price totaled $225.4 million.


	Three Months Ended										Nine Months Ended
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		September 30, 2021		September 30, 2020
	($ in thousands)
Total interest and dividend income	$	71,791	$	69,677	$	68,618	$	73,530	$	69,666	$	210,086	$	217,077
Total interest expense	8,815		9,830		10,702		11,967		13,811		29,347		54,046
Net interest income	62,976		59,847		57,916		61,563		55,855		180,739		163,031
Total noninterest income	5,519		4,170		4,381		6,975		3,954		14,070		11,543
Total revenue	68,495		64,017		62,297		68,538		59,809		194,809		174,574
Total noninterest expense	37,811		40,559		46,735		38,950		40,394		125,105		160,083
Pre-tax / pre-provision income	30,684		23,458		15,562		29,588		19,415		69,704		14,491
(Reversal of) provision for credit losses	(1,147)		(2,154)		(1,107)		991		1,141		(4,408)		28,728

Income tax expense (benefit)	8,661		6,562		2,294		6,894		2,361		17,517		(5,108)


Net income (loss)	$	23,170	$	19,050	$	14,375	$	21,703	$	15,913	$	56,595	$	(9,129)

Net income (loss) available to common stockholders(1)	$	21,443	$	17,323	$	7,825	$	17,706	$	12,084	$	46,493	$	(19,265)

The net interest margin increased 1 basis point to 3.28% for the third quarter as the average earning-assets yield decreased 8 basis points and the average cost of total funding decreased 8 basis points. The yield on average interest-earning assets decreased to 3.73% for the third quarter from 3.81% for the second quarter due mostly to a reduction of prepayment penalties, offset by a higher level of accelerated PPP fees and an improved mix of earning assets. Average loans increased by $287.9 million while average securities and other interest-earning assets decreased $2.4 million. The average yield on loans decreased 12 basis points to 4.18% during the third quarter. The loan yield includes the impact of prepayment penalty fees, the net reversal or recapture of nonaccrual loan interest, accelerated discount accretion on the early payoff of purchased loans, and accelerated fees from PPP loan forgiveness; these items increased the loan yield by 11 basis points in the third quarter and 18 basis points in the second quarter. The average yield on securities decreased 3 basis point to 2.11% between quarters, including a 5 basis points decrease in the average yield on collateralized loan obligations (CLOs) to 1.82% for the third quarter due mostly to an increase in fair value of such investments.

The average cost of funds decreased 8 basis points to 0.49% for the third quarter from 0.57% for the second quarter. This decrease was driven by the lower average cost of interest-bearing liabilities and an improved funding mix, including higher average noninterest-bearing deposits. Average noninterest-bearing deposits represented 30% of total average deposits for the third quarter compared to 28% of total average deposits for the second quarter. Average noninterest-bearing deposits were $172.2 million higher in the third quarter compared to the second quarter while average deposits were $154.6 million higher for the linked quarters. Average Federal Home Loan Bank (FHLB) advances and other borrowings increased $126.3 million due to higher average overnight balances from loan portfolio growth during the third quarter. The average cost of interest-bearing liabilities decreased 10 basis points to 0.67% for the third quarter from 0.77% for the second quarter due to our continuing efforts to actively manage down the cost of interest-bearing deposits. The average cost of interest-bearing deposits declined 10 basis points to 0.22% for the third quarter from 0.32% for the second quarter. The average cost of total deposits decreased 8 basis points to 0.15% for the third quarter. The spot rate of total deposits was 0.08% at the end of the third quarter.

The net interest margin expanded due to a 52 basis point decrease in the average cost of funds outpacing a 29 basis point decline in the average interest-earning assets yield. The average yield on interest-earning assets decreased to 3.77% for the nine months ended September 30, 2021, from 4.06% for same 2020 period due mostly to the impact of lower market interest rates on loan and securities yields over this time period. The average fed funds rate for the nine months ended September 30, 2021 was 0.08% compared to 0.47% for the same 2020 period. The average yield on loans was 4.26% for the nine months ended September 30, 2021, compared to 4.50% for the same 2020 period and the average yield on securities decreased 67 basis points to 2.13% due mostly to CLOs repricing into the lower rate environment.

The average cost of funds decreased to 0.56% for the nine months ended September 30, 2021, from 1.08% for the same 2020 period. This decrease was driven by the lower average cost of interest-bearing liabilities and the improved funding mix, including higher average noninterest-bearing deposits. The average cost of interest-bearing liabilities decreased 59 basis points to 0.75% for the nine months ended September 30, 2021 from 1.34% for the same 2020 period due to the combination of actively managing deposit pricing down into the lower interest rate environment and the overall reduced usage of FHLB advances to fund loan growth. Compared to the same 2020 period, the average cost of interest-bearing deposits declined 67 basis points to 0.31% and the average cost of total deposits decreased 54 basis points to 0.22%. Additionally, average noninterest-bearing deposits increased by $507.6 million or 39.6% for the nine months ended September 30, 2021 when compared to the same 2020 period.

Noninterest income for the nine months ended September 30, 2021 increased $2.5 million to $14.1 million compared to the same 2020 period. The increase in noninterest income was mainly due to higher customer service fees, lower fair value adjustment for loans held for sale and higher all other income, offset by lower net gain on sale of securities and loans. The $1.8 million increase in customer services fees was due to higher loan fees of $351 thousand and higher deposit activity fees of $1.5 million. The increase in deposit activity fees is attributed to higher average deposit balances and our initiative to bring our service fee schedules more in line with market. Fair value adjustment for loans held for sale improved $1.7 million as the comparable period included valuation losses on loans held for sale due to the impact of the decreases in market interest rates. There were no gains from sale of securities for the nine months ended September 30, 2021, compared to $2.0 million in net gains in the same 2020 period from the sale of $20.7 million in securities, primarily consisting of corporate securities. The $837 thousand increase in all other income is due mostly to the aforementioned gain related to the sale-leaseback transaction, higher rental income, interest rate swap income and processing fees, offset by lower legal settlement income and lower earnout income which ended in 2020.

Noninterest expense decreased $2.7 million to $37.8 million for the third quarter compared to the prior quarter. The decrease was due mostly to lower professional fees of $857 thousand, lower all other expense of $995 thousand and higher net gain in alternative energy partnership investments of $956 thousand, offset by higher merger-related costs of $300 thousand. Professional fees included net recoveries of indemnified legal expenses of $2.2 million in the third quarter compared to net recoveries of $1.3 million during the second quarter. The $995 thousand decrease in all other expense was due mostly to the third quarter including a gain on sale of other real estate owned of $365 thousand compared to $0 in the prior quarter, and higher equity investment income as the prior quarter included net losses of $727 thousand compared to $0 in the third quarter. Equity investments without readily determinable fair values include investments in privately held companies and limited partnerships and income or loss from these investments fluctuates based on their underlying performance. Total merger-related costs increased $300 thousand to $1.0 million for the third quarter compared to the prior quarter.

Noninterest expense for the nine months ended September 30, 2021 decreased $35.0 million to $125.1 million compared to the prior year. The decrease was primarily due to: (i) the same 2020 period including a $26.8 million one-time charge related to the termination of our LAFC naming rights agreements, (ii) lower professional fees of $9.0 million, due mostly to a $7.6 million decrease in legal fees, net of insurance recoveries, (iii) lower advertising fees of $2.8 million due to the termination of the LAFC agreements in May 2020, and (iv) lower all other expense of $4.2 million resulting from the previous year including a $2.5 million debt extinguishment fee for the early repayment of certain FHLB term advances and a $1.2 million charge for two legacy legal settlements combined with overall expense reduction efforts. These decreases were partially offset by higher (i) salaries and employee benefits of $4.6 million due to higher commissions and incentive-based compensation due to higher production and financial performance levels, (ii) merger-related costs of $2.4 million associated with the approved merger with PMB, and (iii) net losses in alternative energy partnership investments of $708 thousand.


											Amount Change
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		Q3-21 vs. Q2-21		Q3-21 vs. Q3-20

	($ in thousands)
Securities available-for-sale	$	1,303,368	$	1,353,154	$	1,270,830	$	1,231,431	$	1,245,867	$	(49,786)	$	57,501
Loans held-for-investment	$	6,228,575	$	5,985,477	$	5,764,401	$	5,898,405	$	5,678,002	$	243,098	$	550,573
Loans held-for-sale	$	3,422	$	2,853	$	1,408	$	1,413	$	1,849	$	569	$	1,573
Total assets	$	8,278,741	$	8,027,413	$	7,933,459	$	7,877,334	$	7,738,106	$	251,328	$	540,635




Noninterest-bearing deposits	$	2,107,709	$	1,808,918	$	1,700,343	$	1,559,248	$	1,450,744	$	298,791	$	656,965
Total deposits	$	6,543,225	$	6,206,544	$	6,142,042	$	6,085,800	$	6,032,266	$	336,681	$	510,959




Borrowings (1)	$	762,444	$	871,973	$	891,546	$	796,110	$	733,105	$	(109,529)	$	29,339
Total liabilities	$	7,433,938	$	7,198,051	$	7,128,766	$	6,980,127	$	6,863,852	$	235,887	$	570,086
Total equity	$	844,803	$	829,362	$	804,693	$	897,207	$	874,254	$	15,441	$	(29,451)

Securities available-for-sale decreased $49.8 million during the third quarter to $1.30 billion at September 30, 2021 primarily due to payoffs of $35.5 million from CLO resets, principal payments of $8.5 million, and lower unrealized net gains of $5.4 million. The decrease in unrealized net gains was due mostly to decreases in the value of mortgage-backed securities as a result of increases in longer term interest rates during the third quarter, offset by improved pricing of CLOs and corporate debt securities. As of September 30, 2021, the securities portfolio included $549.3 million of CLOs, $448.6 million of agency securities, $120.4 million of municipal securities, $169.5 million of corporate debt securities, and $15.4 million of SBA pool securities. The CLO portfolio, which is comprised only of AA and AAA rated securities, represented 42% of the total securities portfolio and the carrying value included an unrealized net loss of $2.5 million at September 30, 2021 compared to an unrealized net loss of $3.0 million at June 30, 2021.


	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020
	($ in thousands)
Composition of held-for-investment loans
Commercial real estate	$	907,224		$	871,790		$	839,965		$	807,195		$	826,683
Multifamily	1,295,613			1,325,770			1,258,278			1,289,820			1,476,803
Construction	130,536			150,557			169,122			176,016			197,629
Commercial and industrial	773,681			725,596			760,150			748,299			710,667
Commercial and industrial - warehouse lending	1,522,945			1,345,314			1,118,175			1,340,009			876,157
SBA	181,582			253,924			338,903			273,444			320,573

Total commercial loans	4,811,581			4,672,951			4,484,593			4,634,783			4,408,512
Single-family residential mortgage	1,393,696			1,288,176			1,253,251			1,230,236			1,234,479
Other consumer	23,298			24,350			26,557			33,386			35,011
Total consumer loans	1,416,994			1,312,526			1,279,808			1,263,622			1,269,490
Total gross loans	$	6,228,575		$	5,985,477		$	5,764,401		$	5,898,405		$	5,678,002
Composition percentage of held-for-investment loans
Commercial real estate	14.6		%	14.6		%	14.6		%	13.7		%	14.6		%
Multifamily	20.7		%	22.2		%	21.8		%	21.9		%	26.0		%
Construction	2.1		%	2.5		%	2.9		%	3.0		%	3.5		%
Commercial and industrial	12.4		%	12.1		%	13.2		%	12.7		%	12.5		%
Commercial and industrial - warehouse lending	24.5		%	22.5		%	19.4		%	22.6		%	15.5		%
SBA	2.9		%	4.2		%	5.9		%	4.6		%	5.6		%

Total commercial loans	77.2		%	78.1		%	77.8		%	78.5		%	77.7		%
Single-family residential mortgage	22.4		%	21.5		%	21.7		%	20.9		%	21.7		%
Other consumer	0.4		%	0.4		%	0.5		%	0.6		%	0.6		%
Total consumer loans	22.8		%	21.9		%	22.2		%	21.5		%	22.3		%
Total gross loans	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Held-for-investment loans increased $243.1 million to $6.23 billion from the prior quarter, resulting from higher commercial and industrial (C&I) loans related to warehouse credit facilities of $177.6 million, other C&I loans of $48.1 million and commercial real estate loans of $35.4 million. In addition, single-family residential loans increased by $105.5 million as a result of purchases of $249.4 million during the quarter offset by repayment activity within this portfolio. These increases were partially offset by decreases in multifamily loans of $30.2 million, construction loans of $20.0 million, and SBA loans of $72.3 million due mostly to the forgiveness of $79.2 million in PPP loans during the quarter. At September 30, 2021, SBA loans included $116.5 million of PPP loans, net of fees.


	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020
	($ in thousands)
Composition of deposits
Noninterest-bearing checking	$	2,107,709		$	1,808,918		$	1,700,343		$	1,559,248		$	1,450,744
Interest-bearing checking	2,214,678			2,217,306			2,088,528			2,107,942			2,045,115


Savings and money market	1,661,013			1,593,724			1,684,703			1,646,660			1,636,062
Non-brokered certificates of deposit	559,825			586,596			668,468			755,727			820,531
Brokered certificates of deposit	—			—			—			16,223			79,814
Total deposits	$	6,543,225		$	6,206,544		$	6,142,042		$	6,085,800		$	6,032,266
Composition percentage of deposits
Noninterest-bearing checking	32.2		%	29.1		%	27.7		%	25.6		%	24.1		%
Interest-bearing checking	33.8		%	35.7		%	34.0		%	34.6		%	33.9		%


Savings and money market	25.4		%	25.7		%	27.4		%	27.0		%	27.1		%
Non-brokered certificates of deposit	8.6		%	9.5		%	10.9		%	12.4		%	13.6		%
Brokered certificates of deposit	—		%	—		%	—		%	0.4		%	1.3		%
Total deposits	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Total deposits increased $336.7 million during the third quarter of 2021 to $6.54 billion due to higher noninterest-bearing checking balances of $298.8 million and higher savings and money market balances of $67.3 million, offset by lower interest-bearing checking of $2.6 million, and non-brokered certificates of deposit of $26.8 million. We continue to focus on growing relationship-based deposits, strategically augmented by wholesale funding, as we actively managed down deposit costs in response to the current interest rate environment. Noninterest-bearing deposits totaled $2.11 billion and represented 32% of total deposits at September 30, 2021 compared to $1.81 billion, or 29% of total deposits, at June 30, 2021.

At September 30, 2021, total stockholders’ equity increased by $15.4 million to $844.8 million and tangible common equity increased by $15.7 million to $710.9 million on a linked-quarter basis. The increase in total stockholders’ equity for the third quarter included net income of $23.2 million and share-based award compensation of $1.1 million, offset by lower net accumulated other comprehensive income of $3.8 million, dividends to common and preferred stockholders of $4.8 million and the impact of vested and exercised share-based awards of $0.3 million. Book value per share increased to $14.76 as of September 30, 2021 from $14.46 at June 30, 2021. Tangible book value per share increased to $13.99 as of September 30, 2021 from $13.69 at June 30, 2021.


	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020
Capital Ratios(1)
Banc of California, Inc.
Total risk-based capital ratio	14.76	%	15.33	%	15.87	%	17.01	%	16.19	%
Tier 1 risk-based capital ratio	12.38	%	12.71	%	13.17	%	14.35	%	14.94	%
Common equity tier 1 capital ratio	10.89	%	11.14	%	11.50	%	11.19	%	11.59	%
Tier 1 leverage ratio	9.80	%	9.89	%	9.62	%	10.90	%	10.79	%
Banc of California, NA
Total risk-based capital ratio	16.35	%	17.25	%	17.82	%	17.27	%	18.14	%
Tier 1 risk-based capital ratio	15.26	%	16.09	%	16.57	%	16.02	%	16.89	%
Common equity tier 1 capital ratio	15.26	%	16.09	%	16.57	%	16.02	%	16.89	%
Tier 1 leverage ratio	12.08	%	12.52	%	12.13	%	12.19	%	12.21	%


	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020
Asset quality information and ratios	($ in thousands)
Delinquent loans held-for-investment
30 to 89 days delinquent	$	23,144		$	16,983		$	31,005		$	13,981		$	51,229
90+ days delinquent	21,979			17,998			30,292			17,636			31,809
Total delinquent loans	$	45,123		$	34,981		$	61,297		$	31,617		$	83,038
Total delinquent loans to total loans	0.72		%	0.58		%	1.06		%	0.54		%	1.46		%
Non-performing assets, excluding loans held-for-sale
Non-accrual loans	$	45,621		$	51,299		$	55,920		$	35,900		$	66,337
90+ days delinquent and still accruing loans	—			—			—			728			547
Non-performing loans	45,621			51,299			55,920			36,628			66,884
Other real estate owned	—			3,253			—			—			—
Non-performing assets	$	45,621		$	54,552		$	55,920		$	36,628		$	66,884
ALL to non-performing loans	161.16		%	147.93		%	141.90		%	221.22		%	135.95		%
Non-performing loans to total loans held-for-investment	0.73		%	0.86		%	0.97		%	0.62		%	1.18		%
Non-performing assets to total assets	0.55		%	0.68		%	0.70		%	0.46		%	0.86		%
Troubled debt restructurings (TDRs)
Performing TDRs	$	5,835		$	6,029		$	6,347		$	4,733		$	5,408
Non-performing TDRs	2,366			3,120			4,130			4,264			20,002
Total TDRs	$	8,201		$	9,149		$	10,477		$	8,997		$	25,410

Total delinquent loans increased $10.1 million in the third quarter to $45.1 million at September 30, 2021, due mostly to additions of $24.9 million, offset by $12.4 million returning to current status and $2.3 million in other reductions including paydowns. The additions included single-family residential (SFR) loans of $9.8 million, a C&I relationship of $6.6 million, and SBA loans of $7.6 million, including $5.0 million in guaranteed SBA loans that were repurchased and are pending resolution. Delinquent loans included SFR loans of $19.1 million, SBA loans of $14.9 million, of which $10.6 million is guaranteed, and other loans of $11.1 million.

Non-performing loans decreased $5.7 million to $45.6 million as of September 30, 2021, of which $22.7 million, or 50%, relates to loans in a current payment status. The third quarter decrease was due mostly to $4.6 million in loans returning to accrual status and $3.3 million in payoffs, paydowns and a note sale, offset by one $2.6 million guaranteed SBA loan that was repurchased and is pending resolution. At September 30, 2021, non-performing loans included (i) a legacy relationship totaling $7.0 million that is well-secured by a combination of commercial real estate and SFR properties with an average loan-to-value ratio of 50%, (ii) SFR loans totaling $16.5 million, (iii) SBA loans totaling $12.8 million, of which $8.7 million is guaranteed, and (iv) other commercial loans of $9.2 million.


	Three Months Ended
	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020
	($ in thousands)
Allowance for loan losses (ALL)
Balance at beginning of period	$	75,885		$	79,353		$	81,030		$	90,927		$	90,370

Loans charged off	(327)			(886)			(565)			(11,520)			(1,821)
Recoveries	532			26			172			609			248
Net recoveries (charge-offs)	205			(860)			(393)			(10,911)			(1,573)
(Reversal of) provision for loan losses	(2,566)			(2,608)			(1,284)			1,014			2,130
Balance at end of period	$	73,524		$	75,885		$	79,353		$	81,030		$	90,927
Reserve for unfunded loan commitments
Balance at beginning of period	$	3,814		$	3,360		$	3,183		$	3,206		$	4,195

Provision for (reversal of) credit losses	1,419			454			177			(23)			(989)
Balance at end of period	5,233			3,814			3,360			3,183			3,206
Allowance for credit losses (ACL)	$	78,757		$	79,699		$	82,713		$	84,213		$	94,133

ALL to total loans	1.18		%	1.27		%	1.38		%	1.37		%	1.60		%
ACL to total loans	1.26		%	1.33		%	1.43		%	1.43		%	1.66		%
ACL to total loans, excluding PPP loans	1.29		%	1.38		%	1.51		%	1.48		%	1.74		%
ACL to NPLs	172.63		%	155.36		%	147.91		%	229.91		%	140.74		%
Annualized net loan charge-offs (recoveries) to average total loans held-for-investment	(0.01)		%	0.06		%	0.03		%	0.77		%	0.12		%

Reserve for loss on repurchased loans
Balance at beginning of period	$	5,095		$	5,383		$	5,515		$	5,487		$	5,567
Initial provision for loan repurchases	—			—			—			—			11
(Reversal of) provision for loan repurchases	(42)			(99)			(132)			28			(91)
Utilization of reserve for loan repurchases	(30)			(189)			—			—			—
Balance at end of period	$	5,023		$	5,095		$	5,383		$	5,515		$	5,487

The allowance for expected credit losses (ACL), which includes the reserve for unfunded loan commitments, totaled $78.8 million, or 1.26% of total loans, at September 30, 2021, compared to $79.7 million, or 1.33% of total loans, at June 30, 2021. The $942 thousand decrease in the ACL was due to: (i) lower general reserves of $1.9 million due to improved economic assumptions and asset quality trends, offset by higher period end portfolio balances, (ii) net recoveries of $205 thousand, and (iii) higher specific reserves of $828 thousand. The ACL coverage of non-performing loans was 173% at September 30, 2021 compared to 155% at June 30, 2021.

variables (MEVs) released by our model provider during September 2021. The September 2021 forecasts reflect a more favorable view of the economy (i.e. higher GDP growth rates, higher CRE price indices and lower unemployment rates) compared to the June 2021 forecasts. While the current forecasts generally reflect an improving economy with the availability of the vaccine and other factors, there continues to be uncertainty regarding the impact of inflation (lasting or transitory), COVID-19 variants, further government stimulus, supply chain issues, and the ultimate pace of economic recovery. Accordingly, our economic assumptions, the resulting ACL level and provision reversal consider both the positive assumptions and potential uncertainties.

The Company will host a conference call to discuss its third quarter 2021 financial results at 10:00 a.m. Pacific Time (PT) on Thursday, October 21, 2021. Interested parties are welcome to attend the conference call by dialing (888) 317-6003, and referencing event code 9764771. 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 (877) 344-7529 and referencing event code 10157715.

Banc of California, Inc. (NYSE: BANC) is a bank holding company with $8.3 billion in assets at September 30, 2021 and one wholly-owned banking subsidiary, Banc of California, N.A. (the Bank). With the acquisition of PMBC completed on October 18, 2021, assets total $9.8 billion on a combined proforma basis at September 30, 2021. The Bank has 39 offices including 33 full-service branches located throughout Southern California. Through our 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 to 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.

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 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 (SEC). In addition to those, statements about the potential effects of the COVID-19 pandemic on the business, financial results and condition of Banc of California, Inc. and its subsidiaries may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond the control of Banc of California, Inc., including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on Banc of California, Inc. and its subsidiaries, their customers and third parties. Further, statements about the potential effects of the Pacific Mercantile Bancorp acquisition on the business, financial results and condition of Banc of California, Inc. and its subsidiaries may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond the control of Banc of California, Inc., including (i) the risk that the benefits from the transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Banc of California Inc. and Pacific Mercantile Bancorp operate; (ii) the ability to promptly and effectively integrate the businesses of Banc of California, Inc. and Pacific Mercantile Bancorp; (iii) the reaction to the transaction of the companies’ customers, employees and counterparties; (iv) diversion of management time on integration-related issues; (v) lower than expected revenues, credit quality deterioration or a reduction in real estate values or a reduction in net earnings; and (vi) other risks that are described in Banc of California, Inc.’s public filings with the SEC. 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.


	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020
ASSETS
Cash and cash equivalents	$	185,840	$	163,332	$	379,509	$	220,819	$	292,490
Securities available-for-sale	1,303,368		1,353,154		1,270,830		1,231,431		1,245,867
Loans held-for-sale	3,422		2,853		1,408		1,413		1,849
Loans held-for-investment	6,228,575		5,985,477		5,764,401		5,898,405		5,678,002
Allowance for loan losses	(73,524)		(75,885)		(79,353)		(81,030)		(90,927)
Federal Home Loan Bank and other bank stock	44,604		44,569		44,964		44,506		44,809
Servicing rights, net	1,022		1,162		1,407		1,454		1,621
Other real estate owned, net	—		3,253		—		—		—
Premises and equipment, net	114,011		118,649		120,071		121,520		123,812
Alternative energy partnership investments, net	25,196		24,068		23,809		27,977		27,786
Goodwill	37,144		37,144		37,144		37,144		37,144
Other intangible assets, net	1,787		2,069		2,351		2,633		2,939
Deferred income tax, net	40,659		41,628		47,877		45,957		43,744
Income tax receivable	2,107		4,084		210		1,105		10,701
Bank owned life insurance investment	113,884		113,168		112,479		111,807		111,115
Right of use assets	29,054		20,364		22,069		19,633		18,909

Other assets	221,592		188,324		184,283		192,560		188,245

Total assets	$	8,278,741	$	8,027,413	$	7,933,459	$	7,877,334	$	7,738,106

LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits	$	2,107,709	$	1,808,918	$	1,700,343	$	1,559,248	$	1,450,744
Interest-bearing deposits	4,435,516		4,397,626		4,441,699		4,526,552		4,581,522
Total deposits	6,543,225		6,206,544		6,142,042		6,085,800		6,032,266
Advances from Federal Home Loan Bank	405,738		490,419		635,105		539,795		559,482
Other borrowings	100,000		125,000		—		—		—
Long-term debt, net	256,706		256,554		256,441		256,315		173,623
Reserve for loss on repurchased loans	5,023		5,095		5,383		5,515		5,487
Lease liabilities	30,390		21,588		23,173		20,647		19,938

Accrued expenses and other liabilities	92,856		92,851		66,622		72,055		73,056

Total liabilities	7,433,938		7,198,051		7,128,766		6,980,127		6,863,852
Commitments and contingent liabilities
Preferred stock	94,956		94,956		94,956		184,878		184,878
Common stock	527		527		526		522		522
Common stock, class B non-voting non-convertible	5		5		5		5		5
Additional paid-in capital	631,512		630,654		629,844		634,704		633,409
Retained earnings	147,682		129,307		115,004		110,179		95,001
Treasury stock	(40,827)		(40,827)		(40,827)		(40,827)		(40,827)
Accumulated other comprehensive income, net	10,948		14,740		5,185		7,746		1,266
Total stockholders’ equity	844,803		829,362		804,693		897,207		874,254
Total liabilities and stockholders’ equity	$	8,278,741	$	8,027,413	$	7,933,459	$	7,877,334	$	7,738,106


	Three Months Ended										Nine Months Ended
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		September 30, 2021		September 30, 2020
Interest and dividend income
Loans, including fees	$	63,837	$	61,900	$	61,345	$	66,105	$	62,019	$	187,082	$	191,195
Securities	7,167		6,986		6,501		6,636		6,766		20,654		22,402
Other interest-earning assets	787		791		772		789		881		2,350		3,480
Total interest and dividend income	71,791		69,677		68,618		73,530		69,666		210,086		217,077
Interest expense
Deposits	2,412		3,543		4,286		5,436		7,564		10,241		32,380
Federal Home Loan Bank advances	2,990		2,944		3,112		3,479		3,860		9,046		14,561


Other interest-bearing liabilities	3,413		3,343		3,304		3,052		2,387		10,060		7,105
Total interest expense	8,815		9,830		10,702		11,967		13,811		29,347		54,046
Net interest income	62,976		59,847		57,916		61,563		55,855		180,739		163,031
(Reversal of) provision for credit losses	(1,147)		(2,154)		(1,107)		991		1,141		(4,408)		28,728
Net interest income after (reversal of) provision for credit losses	64,123		62,001		59,023		60,572		54,714		185,147		134,303
Noninterest income
Customer service fees	1,900		1,990		1,758		1,953		1,498		5,648		3,818
Loan servicing income	170		38		268		149		186		476		356
Income from bank owned life insurance	715		690		672		691		629		2,077		1,798

Net gain on sale of securities available for sale	—		—		—		—		—		—		2,011
Fair value adjustment on loans held for sale	160		20		—		36		24		180		(1,537)
Net gain on sale of loans	—		—		—		—		272		—		245
All other income	2,574		1,432		1,683		4,146		1,345		5,689		4,852
Total noninterest income	5,519		4,170		4,381		6,975		3,954		14,070		11,543
Noninterest expense
Salaries and employee benefits	24,786		25,042		25,719		25,836		23,277		75,547		70,973
Naming rights termination	—		—		—		—		—		—		26,769
Occupancy and equipment	7,124		7,277		7,196		7,560		7,457		21,597		21,790
Professional fees	892		1,749		4,022		29		5,147		6,663		15,707
Data processing	1,646		1,621		1,655		1,608		1,657		4,922		4,966
Advertising	122		78		118		171		219		318		3,132
Regulatory assessments	812		769		774		748		784		2,355		1,993
(Reversal of) provision for loan repurchase reserves	(42)		(99)		(132)		28		(91)		(273)		(725)
Amortization of intangible assets	282		282		282		306		353		846		1,212
Merger-related costs	1,000		700		700		—		—		2,400		—

All other expense	2,974		3,969		2,771		3,337		3,021		9,714		13,958
Total noninterest expense before (gain) loss in alternative energy partnership investments	39,596		41,388		43,105		39,623		41,824		124,089		159,775
(Gain) loss in alternative energy partnership investments	(1,785)		(829)		3,630		(673)		(1,430)		1,016		308
Total noninterest expense	37,811		40,559		46,735		38,950		40,394		125,105		160,083
Income (loss) before income taxes	31,831		25,612		16,669		28,597		18,274		74,112		(14,237)
Income tax expense (benefit)	8,661		6,562		2,294		6,894		2,361		17,517		(5,108)




Net income (loss)	23,170		19,050		14,375		21,703		15,913		56,595		(9,129)
Preferred stock dividends	1,727		1,727		3,141		3,447		3,447		6,595		10,422
Income allocated to participating securities	—		—		62		456		281		160		—
Participating securities dividends	—		—		—		94		94		—		282
Impact of preferred stock redemption	—		—		3,347		—		7		3,347		(568)
Net income (loss) available to common stockholders	$	21,443	$	17,323	$	7,825	$	17,706	$	12,084	$	46,493	$	(19,265)


	Three Months Ended										Nine Months Ended
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		September 30, 2021		September 30, 2020
Profitability and other ratios of consolidated operations
Return on average assets(1)	1.13	%	0.98	%	0.74	%	1.11	%	0.82	%	0.95	%	(0.16)	%
Return on average equity(1)	10.84	%	9.38	%	6.56	%	9.67	%	7.32	%	8.90	%	(1.39)	%
Return on average tangible common equity(1)(2)	12.04	%	10.34	%	4.77	%	10.69	%	7.68	%	9.10	%	(3.76)	%
Pre-tax pre-provision income (loss) ROAA(1)(2)	1.50	%	1.20	%	0.80	%	1.52	%	1.00	%	1.17	%	0.25	%
Adjusted pre-tax pre-provision income ROAA(1)(2)	1.34	%	1.13	%	1.06	%	1.25	%	0.98	%	1.18	%	0.82	%
Dividend payout ratio(3)	14.29	%	17.65	%	37.50	%	17.14	%	25.00	%	19.57	%	(47.37)	%
Average loan yield	4.18	%	4.30	%	4.30	%	4.58	%	4.46	%	4.26	%	4.50	%
Average cost of interest-bearing deposits	0.22	%	0.32	%	0.38	%	0.47	%	0.66	%	0.31	%	0.98	%
Average cost of total deposits	0.15	%	0.23	%	0.28	%	0.36	%	0.51	%	0.22	%	0.76	%
Net interest spread	3.06	%	3.04	%	2.95	%	3.15	%	2.84	%	3.02	%	2.72	%
Net interest margin(1)	3.28	%	3.27	%	3.19	%	3.38	%	3.09	%	3.25	%	3.05	%
Noninterest income to total revenue(4)	8.06	%	6.51	%	7.03	%	10.18	%	6.61	%	7.22	%	6.61	%
Noninterest income to average total assets(1)	0.27	%	0.21	%	0.23	%	0.36	%	0.20	%	0.24	%	0.20	%
Noninterest expense to average total assets(1)	1.84	%	2.08	%	2.41	%	2.00	%	2.09	%	2.11	%	2.79	%
Adjusted noninterest expense to average total assets(1)(2)	1.99	%	2.15	%	2.15	%	2.26	%	2.10	%	2.09	%	2.21	%
Efficiency ratio(2)(5)	55.20	%	63.36	%	75.02	%	56.83	%	67.54	%	64.22	%	91.70	%
Adjusted efficiency ratio(2)(6)	59.63	%	65.58	%	66.91	%	64.26	%	68.31	%	63.92	%	72.93	%
Average loans held-for-investment to average deposits	94.99	%	92.74	%	93.74	%	95.65	%	92.86	%	93.84	%	99.64	%
Average securities available-for-sale to average total assets	16.55	%	16.71	%	15.73	%	15.96	%	15.49	%	16.33	%	13.96	%
Average stockholders’ equity to average total assets	10.41	%	10.41	%	11.30	%	11.49	%	11.26	%	10.70	%	11.46	%


	Three Months Ended
	September 30, 2021							June 30, 2021							March 31, 2021
	Average					Yield		Average					Yield		Average					Yield
	Balance			Interest		/ Cost		Balance			Interest		/ Cost		Balance			Interest		/ Cost
Interest-earning assets
Commercial real estate, multifamily, and construction	$	2,379,962		$	26,542	4.42	%	$	2,313,483		$	27,222	4.72	%	$	2,322,509		$	26,387	4.61	%
Commercial and industrial and SBA	2,322,372			25,345		4.33	%	2,154,512			22,978		4.28	%	2,221,494			22,910		4.18	%
SFR mortgage	1,331,876			11,683		3.48	%	1,277,552			11,410		3.58	%	1,210,105			11,747		3.94	%
Other consumer	22,164			238		4.26	%	23,881			275		4.62	%	28,520			294		4.18	%
Loans held-for-sale	2,956			29		3.89	%	1,987			15		3.03	%	1,413			7		2.01	%
Gross loans and leases	6,059,330			63,837		4.18	%	5,771,415			61,900		4.30	%	5,784,041			61,345		4.30	%
Securities	1,347,317			7,167		2.11	%	1,308,230			6,986		2.14	%	1,236,138			6,501		2.13	%
Other interest-earning assets	222,274			787		1.40	%	258,915			791		1.23	%	336,443			772		0.93	%
Total interest-earning assets	7,628,921			71,791		3.73	%	7,338,560			69,677		3.81	%	7,356,622			68,618		3.78	%
Allowance for loan losses	(76,028)							(79,103)							(81,111)
BOLI and noninterest-earning assets	588,720							567,549							585,441
Total assets	$	8,141,613						$	7,827,006						$	7,860,952

Interest-bearing liabilities
Interest-bearing checking	$	2,280,429		$	632	0.11	%	$	2,182,419		$	679	0.12	%	$	2,140,314		$	901	0.17	%


Savings and money market	1,583,791			1,350		0.34	%	1,638,105			2,244		0.55	%	1,654,525			2,390		0.59	%
Certificates of deposit	571,822			430		0.30	%	633,101			620		0.39	%	720,180			995		0.56	%
Total interest-bearing deposits	4,436,042			2,412		0.22	%	4,453,625			3,543		0.32	%	4,515,019			4,286		0.38	%
FHLB advances	435,984			2,990		2.72	%	418,111			2,944		2.82	%	446,618			3,112		2.83	%

Other borrowings	126,352			34		0.11	%	17,920			4		0.09	%	4,127			2		0.20	%
Long-term debt	256,634			3,379		5.22	%	256,492			3,339		5.22	%	256,361			3,302		5.22	%
Total interest-bearing liabilities	5,255,012			8,815		0.67	%	5,146,148			9,830		0.77	%	5,222,125			10,702		0.83	%
Noninterest-bearing deposits	1,939,912							1,767,711							1,653,517
Noninterest-bearing liabilities	98,748							98,174							97,136
Total liabilities	7,293,672							7,012,033							6,972,778
Total stockholders’ equity	847,941							814,973							888,174
Total liabilities and stockholders’ equity	$	8,141,613						$	7,827,006						$	7,860,952

Net interest income/spread				$	62,976	3.06	%				$	59,847	3.04	%				$	57,916	2.95	%
Net interest margin						3.28	%						3.27	%						3.19	%

Ratio of interest-earning assets to interest-bearing liabilities	145		%					143		%					141		%
Total deposits	$	6,375,954		$	2,412	0.15	%	$	6,221,336		$	3,543	0.23	%	$	6,168,536		$	4,286	0.28	%
Total funding (1)	$	7,194,924		$	8,815	0.49	%	$	6,913,859		$	9,830	0.57	%	$	6,875,642		$	10,702	0.63	%


	Three Months Ended
	December 31, 2020							September 30, 2020
	Average					Yield		Average					Yield
	Balance			Interest		/ Cost		Balance			Interest		/ Cost
Interest-earning assets
Commercial real estate, multifamily, and construction	$	2,507,950		$	30,371	4.82	%	$	2,493,408		$	29,666	4.73	%
Commercial and industrial and SBA	1,978,684			21,984		4.42	%	1,673,548			18,585		4.42	%
SFR mortgage	1,224,865			12,955		4.21	%	1,311,513			13,178		4.00	%
Other consumer	31,856			787		9.83	%	35,563			451		5.05	%
Loans held-for-sale	1,564			8		2.03	%	19,544			139		2.83	%
Gross loans and leases	5,744,919			66,105		4.58	%	5,533,576			62,019		4.46	%
Securities	1,239,295			6,636		2.13	%	1,190,765			6,766		2.26	%
Other interest-earning assets	262,363			789		1.20	%	457,558			881		0.77	%
Total interest-earning assets	7,246,577			73,530		4.04	%	7,181,899			69,666		3.86	%
Allowance for loan losses	(83,745)							(89,679)
BOLI and noninterest-earning assets	602,165							594,885
Total assets	$	7,764,997						$	7,687,105

Interest-bearing liabilities
Interest-bearing checking	$	2,086,146		$	1,131	0.22	%	$	1,919,327		$	1,660	0.34	%


Savings and money market	1,609,598			2,542		0.63	%	1,630,319			2,998		0.73	%
Certificates of deposit	860,131			1,763		0.82	%	1,030,829			2,906		1.12	%
Total interest-bearing deposits	4,555,875			5,436		0.47	%	4,580,475			7,564		0.66	%
FHLB advances	534,303			3,479		2.59	%	608,169			3,860		2.52	%
Securities sold under repurchase agreements	—			—		—	%	1,309			2		0.61	%
Other borrowings	8,026			3		0.15	%	325			2		2.45	%
Long-term debt	230,239			3,049		5.27	%	173,586			2,383		5.46	%
Total interest-bearing liabilities	5,328,443			11,967		0.89	%	5,363,864			13,811		1.02	%
Noninterest-bearing deposits	1,448,422							1,357,411
Noninterest-bearing liabilities	95,567							100,424
Total liabilities	6,872,432							6,821,699
Total stockholders’ equity	892,565							865,406
Total liabilities and stockholders’ equity	$	7,764,997						$	7,687,105

Net interest income/spread				$	61,563	3.15	%				$	55,855	2.84	%
Net interest margin						3.38	%						3.09	%

Ratio of interest-earning assets to interest-bearing liabilities	136		%					134		%
Total deposits	$	6,004,297		$	5,436	0.36	%	$	5,937,886		$	7,564	0.51	%
Total funding (1)	$	6,776,865		$	11,967	0.70	%	$	6,721,275		$	13,811	0.82	%


	Nine Months Ended
	September 30, 2021							September 30, 2020
	Average					Yield		Average					Yield
	Balance			Interest		/ Cost		Balance			Interest		/ Cost
Interest-earning assets
Commercial real estate, multifamily, and construction	$	2,338,862		$	80,152	4.58	%	$	2,527,331		$	89,348	4.72	%
Commercial and industrial and SBA	2,233,162			71,233		4.26	%	1,664,365			57,134		4.59	%
SFR mortgage	1,273,624			34,839		3.66	%	1,419,882			42,660		4.01	%
Other consumer	24,832			807		4.35	%	41,319			1,538		4.97	%
Loans held-for-sale	2,124			51		3.21	%	20,591			515		3.34	%
Gross loans and leases	5,872,604			187,082		4.26	%	5,673,488			191,195		4.50	%
Securities	1,297,636			20,654		2.13	%	1,069,668			22,402		2.80	%
Other interest-earning assets	272,126			2,350		1.15	%	393,495			3,480		1.18	%
Total interest-earning assets	7,442,366			210,086		3.77	%	7,136,651			217,077		4.06	%
Allowance for credit losses	(78,729)							(76,275)
BOLI and noninterest-earning assets	580,581							603,128
Total assets	$	7,944,218						$	7,663,504

Interest-bearing liabilities
Interest-bearing checking	$	2,201,568		$	2,212	0.13	%	$	1,717,483		$	7,575	0.59	%


Savings and money market	1,625,214			5,985		0.49	%	1,543,291			11,621		1.01	%
Certificates of deposit	641,157			2,044		0.43	%	1,132,058			13,184		1.56	%
Total interest-bearing deposits	4,467,939			10,241		0.31	%	4,392,832			32,380		0.98	%
FHLB advances	433,532			9,046		2.79	%	821,349			14,561		2.37	%
Securities sold under repurchase agreements	—			—		—	%	779			4		0.69	%
Other borrowings	49,914			40		0.11	%	469			9		2.56	%
Long-term debt	256,497			10,020		5.22	%	173,512			7,092		5.46	%
Total interest-bearing liabilities	5,207,882			29,347		0.75	%	5,388,941			54,046		1.34	%
Noninterest-bearing deposits	1,788,096							1,280,461
Noninterest-bearing liabilities	98,025							115,582
Total liabilities	7,094,003							6,784,984
Total stockholders’ equity	850,215							878,520
Total liabilities and stockholders’ equity	$	7,944,218						$	7,663,504

Net interest income/spread				$	180,739	3.02	%				$	163,031	2.72	%
Net interest margin						3.25	%						3.05	%

Ratio of interest-earning assets to interest-bearing liabilities	143		%					132		%
Total deposits	$	6,256,035		$	10,241	0.22	%	$	5,673,293		$	32,380	0.76	%
Total funding (1)	$	6,995,978		$	29,347	0.56	%	$	6,669,402		$	54,046	1.08	%

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.

Tangible assets, tangible equity, tangible common equity, tangible equity to tangible assets, tangible common equity to tangible assets, tangible common equity per common share, return on average tangible common equity, adjusted noninterest income, adjusted noninterest expense, adjusted noninterest expense to average total assets, pre-tax pre-provision (PTPP) income (loss), adjusted PTPP income (loss), PTPP income (loss) ROAA, adjusted PTPP income (loss) ROAA, efficiency ratio, adjusted efficiency ratio, adjusted total revenue, adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share (EPS) and adjusted return on average assets (ROAA) 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.

PTPP income is calculated by adding net interest income and noninterest income (total revenue) and subtracting noninterest expense. Adjusted PTPP income is calculated by adding net interest income and adjusted noninterest income (adjusted total revenue) and subtracting adjusted noninterest expense. PTPP income ROAA is computed by dividing annualized PTPP income by average assets. Adjusted PTPP income ROAA is computed by dividing annualized adjusted PTPP income by average assets. Efficiency ratio is computed by dividing noninterest expense by total revenue. Adjusted efficiency ratio is computed by dividing adjusted noninterest expense by adjusted total revenue.


	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020
Tangible common equity, and tangible common equity to tangible assets ratio
Total assets	$	8,278,741		$	8,027,413		$	7,933,459		$	7,877,334		$	7,738,106
Less goodwill	(37,144)			(37,144)			(37,144)			(37,144)			(37,144)
Less other intangible assets	(1,787)			(2,069)			(2,351)			(2,633)			(2,939)
Tangible assets(1)	$	8,239,810		$	7,988,200		$	7,893,964		$	7,837,557		$	7,698,023

Total stockholders' equity	$	844,803		$	829,362		$	804,693		$	897,207		$	874,254
Less goodwill	(37,144)			(37,144)			(37,144)			(37,144)			(37,144)
Less other intangible assets	(1,787)			(2,069)			(2,351)			(2,633)			(2,939)
Tangible equity(1)	805,872			790,149			765,198			857,430			834,171
Less preferred stock	(94,956)			(94,956)			(94,956)			(184,878)			(184,878)
Tangible common equity(1)	$	710,916		$	695,193		$	670,242		$	672,552		$	649,293

Total stockholders' equity to total assets	10.20		%	10.33		%	10.14		%	11.39		%	11.30		%
Tangible equity to tangible assets(1)	9.78		%	9.89		%	9.69		%	10.94		%	10.84		%
Tangible common equity to tangible assets(1)	8.63		%	8.70		%	8.49		%	8.58		%	8.43		%

Common shares outstanding	50,321,096			50,313,228			50,150,447			49,767,489			49,760,543
Class B non-voting non-convertible common shares outstanding	477,321			477,321			477,321			477,321			477,321
Total common shares outstanding	50,798,417			50,790,549			50,627,768			50,244,810			50,237,864

Tangible common equity per common share(1)	$	13.99		$	13.69		$	13.24		$	13.39		$	12.92
Book value per common share	$	14.76		$	14.46		$	14.02		$	14.18		$	13.72


	Three Months Ended															Nine Months Ended
	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			September 30, 2021			September 30, 2020
Return on tangible common equity
Average total stockholders' equity	$	847,941		$	814,973		$	888,174		$	892,565		$	865,406		$	850,215		$	878,520
Less average preferred stock	(94,956)			(94,956)			(164,895)			(184,878)			(184,910)			(118,013)			(186,656)
Less average goodwill	(37,144)			(37,144)			(37,144)			(37,144)			(37,144)			(37,144)			(37,144)
Less average other intangible assets	(1,941)			(2,224)			(2,517)			(2,826)			(3,172)			(2,226)			(3,581)
Average tangible common equity(1)	$	713,900		$	680,649		$	683,618		$	667,717		$	640,180		$	692,832		$	651,139




Net income (loss) available to common stockholders	$	21,443		$	17,323		$	7,825		$	17,706		$	12,084		$	46,493		$	(19,265)
Add amortization of intangible assets	282			282			282			306			353			846			1,212

Less tax effect on amortization of intangible assets(2)	(59)			(59)			(59)			(64)			(74)			(178)			(255)
Net income (loss) available to common stockholders after adjustments for intangible assets(1)	$	21,666		$	17,546		$	8,048		$	17,948		$	12,363		$	47,161		$	(18,308)

Return on average equity	10.84		%	9.38		%	6.56		%	9.67		%	7.32		%	8.90		%	(1.39)		%
Return on average tangible common equity(1)	12.04		%	10.34		%	4.77		%	10.69		%	7.68		%	9.10		%	(3.76)		%


	Three Months Ended															Nine Months Ended
	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			September 30, 2021			September 30, 2020
Adjusted noninterest income and expense
Total noninterest income	$	5,519		$	4,170		$	4,381		$	6,975		$	3,954		$	14,070		$	11,543
Noninterest income adjustments:
Net gain on securities available for sale	—			—			—			—			—			—			(2,011)
Net gain on sale of legacy SFR loans held for sale	—			—			—			—			(272)			—			(272)
Fair value adjustment on legacy SFR loans held for sale	(160)			(20)			—			(36)			(24)			(180)			1,537
Total noninterest income adjustments	(160)			(20)			—			(36)			(296)			(180)			(746)
Adjusted noninterest income(1)	$	5,359		$	4,150		$	4,381		$	6,939		$	3,658		$	13,890		$	10,797

Total noninterest expense	$	37,811		$	40,559		$	46,735		$	38,950		$	40,394		$	125,105		$	160,083
Noninterest expense adjustments:

Naming rights termination	—			—			—			—			—			—			(26,769)
Extinguishment of debt	—			—			—			—			—			—			(2,515)

Professional recoveries (fees)	2,152			1,284			(721)			4,398			(1,172)			2,715			(3,725)
Merger-related costs	(1,000)			(700)			(700)			—			—			(2,400)			—


Noninterest expense adjustments before gain (loss) in alternative energy partnership investments	1,152			584			(1,421)			4,398			(1,172)			315			(33,009)
Gain (loss) in alternative energy partnership investments	1,785			829			(3,630)			673			1,430			(1,016)			(308)
Total noninterest expense adjustments	2,937			1,413			(5,051)			5,071			258			(701)			(33,317)
Adjusted noninterest expense(1)	$	40,748		$	41,972		$	41,684		$	44,021		$	40,652		$	124,404		$	126,766

Average assets	$	8,141,613		$	7,827,006		$	7,860,952		$	7,764,997		$	7,687,105		$	7,944,218		$	7,663,504
Noninterest expense to average total assets	1.84		%	2.08		%	2.41		%	2.00		%	2.09		%	2.11		%	2.79		%
Adjusted noninterest expense to average total assets(1)	1.99		%	2.15		%	2.15		%	2.26		%	2.10		%	2.09		%	2.21		%


	Three Months Ended															Nine Months Ended
	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			September 30, 2021			September 30, 2020
Adjusted pre-tax pre-provision income
Net interest income	$	62,976		$	59,847		$	57,916		$	61,563		$	55,855		$	180,739		$	163,031
Noninterest income	5,519			4,170			4,381			6,975			3,954			14,070			11,543
Total revenue	68,495			64,017			62,297			68,538			59,809			194,809			174,574
Noninterest expense	37,811			40,559			46,735			38,950			40,394			125,105			160,083
Pre-tax pre-provision income(1)	$	30,684		$	23,458		$	15,562		$	29,588		$	19,415		$	69,704		$	14,491

Total revenue	$	68,495		$	64,017		$	62,297		$	68,538		$	59,809		$	194,809		$	174,574
Total noninterest income adjustments	(160)			(20)			—			(36)			(296)			(180)			(746)
Adjusted total revenue(1)	68,335			63,997			62,297			68,502			59,513			194,629			173,828

Noninterest expense	37,811			40,559			46,735			38,950			40,394			125,105			160,083
Total noninterest expense adjustments	2,937			1,413			(5,051)			5,071			258			(701)			(33,317)
Adjusted noninterest expense(1)	40,748			41,972			41,684			44,021			40,652			124,404			126,766
Adjusted pre-tax pre-provision income(1)	$	27,587		$	22,025		$	20,613		$	24,481		$	18,861		$	70,225		$	47,062

Average assets	$	8,141,613		$	7,827,006		$	7,860,952		$	7,764,997		$	7,687,105		$	7,944,218		$	7,663,504
Pre-tax pre-provision income ROAA(1)	1.50		%	1.20		%	0.80		%	1.52		%	1.00		%	1.17		%	0.25		%
Adjusted pre-tax pre-provision income ROAA(1)	1.34		%	1.13		%	1.06		%	1.25		%	0.98		%	1.18		%	0.82		%
Efficiency ratio(1)	55.20		%	63.36		%	75.02		%	56.83		%	67.54		%	64.22		%	91.70		%
Adjusted efficiency ratio(1)	59.63		%	65.58		%	66.91		%	64.26		%	68.31		%	63.92		%	72.93		%


	Three Months Ended															Nine Months Ended
	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			September 30, 2021			September 30, 2020
Adjusted net income (loss)
Net income (loss)	$	23,170		$	19,050		$	14,375		$	21,703		$	15,913		$	56,595		$	(9,129)
Adjustments:
Noninterest income	160			20			—			36			296			180			746
Noninterest expense	(2,937)			(1,413)			5,051			(5,071)			(258)			701			33,317

Total adjustments	(2,777)			(1,393)			5,051			(5,035)			38			881			34,063
Tax impact of adjustments above(1)	694			348			(1,263)			1,259			(10)			(220)			(8,515)
Tax impact from exercise of stock appreciation rights	—			—			(2,093)			—			—			(2,093)			—
Adjustments to net income	(2,083)			(1,045)			1,695			(3,776)			28			(1,432)			25,548
Adjusted net income(2)	$	21,087		$	18,005		$	16,070		$	17,927		$	15,941		$	55,163		$	16,419

Average assets	$	8,141,613		$	7,827,006		$	7,860,952		$	7,764,997		$	7,687,105		$	7,944,218		$	7,663,504
ROAA	1.13		%	0.98		%	0.74		%	1.11		%	0.82		%	0.95		%	(0.16)		%
Adjusted ROAA(2)	1.03		%	0.92		%	0.83		%	0.92		%	0.82		%	0.93		%	0.29		%

Adjusted net income available to common stockholders
Net income (loss) available to common stockholders	$	21,443		$	17,323		$	7,825		$	17,706		$	12,084		$	46,493		$	(19,265)
Adjustments to net income (loss)	(2,083)			(1,045)			1,695			(3,776)			28			(1,432)			25,548
Adjustments for impact of preferred stock redemption	—			—			3,347			—			7			3,347			(568)
Adjusted net income available to common stockholders(2)	$	19,360		$	16,278		$	12,867		$	13,930		$	12,119		$	48,408		$	5,715

Average diluted common shares	50,909,317			50,892,202			50,750,522			50,335,271			50,190,933			50,821,972			50,201,112
Diluted EPS	$	0.42		$	0.34		$	0.15		$	0.35		$	0.24		$	0.91		$	(0.38)
Adjusted diluted EPS(2)(3)	$	0.38		$	0.32		$	0.25		$	0.28		$	0.24		$	0.95		$	0.11


	September 30, 2021
	Amount		% of Portfolio
	($ in thousands)
C&I Portfolio by Industry
Finance and Insurance - Warehouse Lending	$	1,522,945	66	%
Real Estate & Rental Leasing	221,541		10	%
Finance and Insurance - Other	84,569		4	%
Gas Stations	73,926		3	%
Healthcare	72,252		3	%
Television / Motion Pictures	51,097		2	%
Manufacturing	47,421		2	%
Wholesale Trade	38,770		2	%
Other Retail Trade	29,950		1	%
Food Services	29,034		1	%
Professional Services	15,339		1	%
Transportation	4,685		—	%
Accommodations	2,135		—	%
All Other	102,962		4	%
Total	$	2,296,626	100	%


Source: Banc of California, Inc.
Investor Relations Inquiries:
Banc of California, Inc.
(855) 361-2262
Jared Wolff, (949) 385-8700
Lynn Hopkins, (949) 265-6599


	September 30, 2021					June 30, 2021
	Count	Amount(1)		% of Loans in Category		Count	Amount		% of Loans in Category
	($ in thousands)
Single-family residential mortgage	40	$	49,501	4	%	46	$	52,384	4	%
All other loans	5	4,691		—	%	10	34,174		1	%
Total	45	$	54,192	1	%	56	$	86,558	1	%


Earnings (loss) per common share:


Basic	$	0.42	$	0.34	$	0.16	$	0.35	$	0.24	$	0.92	$	(0.38)



Diluted	$	0.42	$	0.34	$	0.15	$	0.35	$	0.24	$	0.91	$	(0.38)
Weighted average number of common shares outstanding
Basic	50,716,680		50,650,186		50,350,897		50,125,462		50,108,655		50,573,928		50,201,112
Diluted	50,909,317		50,892,202		50,750,522		50,335,271		50,190,933		50,821,972		50,201,112
Dividends declared per common share	$	0.06	$	0.06	$	0.06	$	0.06	$	0.06	$	0.18	$	0.18