BANC 10-Q Quarterly Report March 31, 2025

BANC OF CALIFORNIA, INC.

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pacw-20250331

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to ______

Commission File Number 001-35522

BANC OF CALIFORNIA, INC.

(Exact name of registrant as specified in its charter)


Maryland						04-3639825
(State of Incorporation)						(I.R.S. Employer Identification No.)

11611 San Vicente Boulevard, Suite 500

Los Angeles , CA 90049

(Address of Principal Executive Offices, Including Zip Code)

( 855 ) 361-2262

(Registrant's Telephone Number, Including Area Code)

N/A

(Former name, former address, and former fiscal year, if changed since last report)

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

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 7.75% fixed rate reset non-cumulative

perpetual preferred stock, Series F

BANC/PF

New York Stock Exchange

(Title of Each Class)

(Trading Symbol)

(Name of Exchange on Which Registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

☑

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) . Yes ☐ No ☑

As of April 30, 2025, there were 147,140,418 shares of the registrant's voting common stock outstanding, excluding 185,871 shares of unvested restricted stock, and there were 477,321 shares of the registrant's class B non-voting common stock outstanding.

BANC OF CALIFORNIA, INC.

MARCH 31, 2025 QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS


		Page

PART I. FINANCIAL INFORMATION

Item 1.	Condensed Consolidated Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets (Unaudited)	5
	Condensed Consolidated Statements of Earnings (Unaudited)	6
	Condensed Consolidated Statements of Comprehensive Income (Unaudited)	8
	Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited)	9
	Condensed Consolidated Statements of Cash Flows (Unaudited)	11
	Notes to Condensed Consolidated Financial Statements (Unaudited)	13
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	62
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	100
Item 4.	Controls and Procedures	104

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	104
Item 1A.	Risk Factors	104
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	105
Item 3.	Defaults Upon Senior Securities	105
Item 4.	Mine Safety Disclosures	105
Item 5.	Other Information	105
Item 6.	Exhibits	106
Signatures		107

PART I. FINANCIAL INFORMATION

Glossary of Acronyms, Abbreviations, and Terms

The acronyms, abbreviations, and terms listed below are used in various sections of this Quarterly Report on Form 10-Q, including "Item 1. Financial Statements" and "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations."

ACL

Allowance for Credit Losses

FRB

Board of Governors of the Federal Reserve System

AFS

Available-for-Sale

FRBSF

Federal Reserve Bank of San Francisco

AFX

American Financial Exchange

HFS

Held for Sale

ALLL

Allowance for Loan and Lease Losses

HLBV

Hypothetical Liquidation at Book Value

ALM

Asset Liability Management

HOA

Homeowners Association

ASC

Accounting Standards Codification

HTM

Held-to-Maturity

ASU

Accounting Standards Update

ICS

IntraFi Cash Service

BAM

BofCal Asset Management Inc.

IRR

Interest Rate Risk

Basel III

A comprehensive capital framework and rules for U.S. banking organizations approved by the FRB and the FDIC in 2013

LIHTC

Low Income Housing Tax Credit

BOLI

Bank Owned Life Insurance

LOCOM

Lower of Cost or Market

CDI

Core Deposit Intangible Assets

MBS

Mortgage-Backed Securities

CECL

Current Expected Credit Loss

NAV

Net Asset Value

CET1

Common Equity Tier 1

NII

Net Interest Income

Civic

Civic Financial Services, LLC (a company acquired on February 1, 2021)

NVCE

Non-Voting Common Stock Equivalents

CMBS

Commercial Mortgage-Backed Securities

OREO

Other Real Estate Owned

CMOs

Collateralized Mortgage Obligations

PCD

Purchased Credit Deteriorated

CODM

Chief Operating Decision Maker

PSUs

Performance Stock Units

COVID-19

Coronavirus Disease

ROU

Right-of-use

CRA

Community Reinvestment Act

RSUs

Restricted Stock Units

CRI

Customer Relationship Intangible Assets

S&P

Standard & Poor's

DFPI

California Department of Financial Protection and Innovation

SBA

Small Business Administration

DTAs

Deferred Tax Assets

SBIC

Small Business Investment Company

ECR

Earnings Credit Rate

SEC

Securities and Exchange Commission

EVE

Economic Value of Equity

SOFR

Secured Overnight Financing Rate

FDIC

Federal Deposit Insurance Corporation

TRSAs

Time-Based Restricted Stock Awards

FHLB

Federal Home Loan Bank of San Francisco

U.S. GAAP

U.S. Generally Accepted Accounting Principles

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS


	March 31,		December 31,
	2025		2024
	(Unaudited)
	(Dollars in thousands, except par value amounts)
ASSETS:
Cash and due from banks	$	215,591	$	192,006
Interest-earning deposits in financial institutions	2,128,298		2,310,206
Total cash, cash equivalents, and restricted cash	2,343,889		2,502,212
Securities available-for-sale, at fair value
(amortized cost of $ 2,575,393 and $ 2,526,644 , respectively)	2,334,058		2,246,839
Securities held-to-maturity, at amortized cost, net of allowance for credit losses (fair value of
$ 2,179,910 and $ 2,156,694 , respectively)(ACL of $ 600 and $ 1,500 , respectively)	2,311,912		2,306,149
FRB and FHLB stock, at cost	155,330		147,773
Total investment securities	4,801,300		4,700,761
Loans held for sale	25,797		26,331
Loans and leases held for investment	24,126,527		23,781,663

Allowance for loan and lease losses	( 234,986 )		( 239,360 )
Total loans and leases held for investment, net	23,891,541		23,542,303
Equipment leased to others under operating leases	295,032		307,188
Premises and equipment, net	140,347		142,546
Bank owned life insurance	342,810		339,517
Goodwill	214,521		214,521
Intangible assets, net	125,937		132,944
Deferred tax asset, net	702,323		720,587
Other assets	896,421		913,954
Total assets	$	33,779,918	$	33,542,864
LIABILITIES:
Noninterest-bearing deposits	$	7,593,950	$	7,719,913
Interest-bearing deposits	19,599,241		19,471,996
Total deposits	27,193,191		27,191,909
Borrowings (including $ 117,196 and $ 118,838 a t fair value, respectively)	1,670,782		1,391,814
Subordinated debt	944,908		941,923
Accrued interest payable and other liabilities	449,381		517,269
Total liabilities	30,258,262		30,042,915
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Preferred stock	498,516		498,516
Common stock ($ 0.01 par value, 156,135,165 shares issued and 155,947,503 o utstanding at
March 31, 2025; 158,557,735 shares issued and 158,346,529 outstanding at December 31
2024)	1,561		1,586
Class B non-voting common stock ($ 0.01 par value, 477,321 shares issued at March 31, 2025
and 477,321 shares issued at December 31, 2024)	5		5
Non-voting common stock equivalents ($ 0.01 par value, 9,790,600 s hares issued at
March 31, 2025 and 9,790,600 shares issued at December 31, 2024)	98		98
Additional paid-in capital	3,732,376		3,785,725
Retained deficit	( 387,580 )		( 431,201 )
Accumulated other comprehensive loss, net	( 323,320 )		( 354,780 )
Total stockholders' equity	3,521,656		3,499,949
Total liabilities and stockholders' equity	$	33,779,918	$	33,542,864

See Notes to Condensed Consolidated Financial Statements.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS


	Three Months Ended
	March 31,		December 31,		March 31,
	2025		2024		2024
	(Unaudited)
	(In thousands, except per share amounts)
Interest income:
Loans and leases	$	346,103	$	357,303	$	385,465
Investment securities	37,862		37,743		34,303
Deposits in financial institutions	22,690		29,473		58,936
Total interest income	406,655		424,519		478,704
Interest expense:
Deposits	140,530		154,085		194,807
Borrowings	18,421		18,993		38,124
Subordinated debt	15,340		16,156		16,671
Total interest expense	174,291		189,234		249,602
Net interest income	232,364		235,285		229,102
Provision for credit losses	9,300		12,801		10,000
Net interest income after provision for
credit losses	223,064		222,484		219,102
Noninterest income:
Leased equipment income	10,784		10,730		11,716
Other commissions and fees	9,958		8,231		8,142
Service charges on deposit accounts	4,543		4,770		4,705
Gain (loss) on sale of loans and leases	211		20		( 448 )
Loss on sale of securities	—		( 454 )		—
Dividends and gains on equity
investments	2,323		18		3,068
Warrant (loss) income	( 295 )		343		178
LOCOM HFS adjustment	—		( 3 )		330
Other income	6,126		5,334		6,125
Total noninterest income	33,650		28,989		33,816
Noninterest expense:
Compensation	86,417		77,661		92,236
Customer related expense	27,751		31,672		30,919
Insurance and assessments	7,283		11,179		20,461
Occupancy	15,010		15,678		17,968
Information technology and data
processing	15,099		14,546		15,418
Intangible asset amortization	7,160		7,770		8,404
Leased equipment depreciation	6,741		7,096		7,520
Other professional services	4,513		5,498		5,075
Loan expense	2,930		4,489		4,491
Acquisition, integration and
reorganization costs	—		( 1,023 )		—

Other expense	10,749		6,804		8,026
Total noninterest expense	183,653		181,370		210,518
Earnings before income taxes	73,061		70,103		42,400
Income tax expense	19,493		13,184		11,548
Net earnings	53,568		56,919		30,852
Preferred stock dividends	9,947		9,947		9,947
Net earnings available to common
and equivalent stockholders	$	43,621	$	46,972	$	20,905

See Notes to Condensed Consolidated Financial Statements.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS


	Three Months Ended
	March 31,		December 31,		March 31,
	2025		2024		2024
	(Unaudited)
	(In thousands, except per share amounts)
Earnings per share:
Basic	$	0.26	$	0.28	$	0.12
Diluted	$	0.26	$	0.28	$	0.12

See Notes to Condensed Consolidated Financial Statements.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


	Three Months Ended
	March 31,		December 31,		March 31,
	2025		2024		2024
	(Unaudited)
	(In thousands)
Net earnings	$	53,568	$	56,919	$	30,852
Other comprehensive income (loss), net of tax:

Unrealized net holding gains (losses) on securities
available-for-sale arising during the period	38,470		( 54,436 )		( 18,208 )

Income tax (expense) benefit related to unrealized net
holding gains (losses) arising during the period	( 10,952 )		15,793		5,167

Unrealized net holding gains (losses) on securities
available-for-sale, net of tax	27,518		( 38,643 )		( 13,041 )

Reclassification adjustment for net losses included in
net earnings (1)	—		454		—

Income tax benefit related to reclassification adjustment	—		( 132 )		—

Reclassification adjustment for net losses included
in net earnings, net of tax	—		322		—


Amortization of unrealized net loss on securities
transferred from available-for-sale to held-to-maturity	8,342		8,373		8,110
Income tax expense related to amortization of unrealized
net loss on securities transferred from
available-for-sale to held-to-maturity	( 2,378 )		( 2,356 )		( 2,302 )
Amortization of unrealized net loss on securities
transferred from available-for-sale
to held-to-maturity, net of tax	5,964		6,017		5,808
Change in fair value of credit-linked notes	146		( 479 )		( 1,251 )
Income tax (expense) benefit related to change in fair
value of credit-linked notes	( 42 )		130		355
Change in fair value of credit-linked notes,
net of tax	104		( 349 )		( 896 )
Unrealized (loss) gain on cash flow hedges arising
during the period	( 2,973 )		8,405		5,425
Income tax benefit (expense) related to unrealized gain
on cash flow hedges arising during the period	847		( 2,384 )		( 1,618 )
Unrealized (loss) gain on cash flow hedges,
net of tax	( 2,126 )		6,021		3,807
Other comprehensive income (loss), net of tax	31,460		( 26,632 )		( 4,322 )
Comprehensive income	$	85,028	$	30,287	$	26,530

__________________________________

(1) Entire amount recognized in " Loss on sale of securities " on the Condensed Consolidated Statements of Earnings.

See Notes to Condensed Consolidated Financial Statements.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY


	Three Months Ended March 31, 2025
							Non-
			Common Stock				Voting						Accumulated
					Class B		Common		Additional				Other
	Preferred				Non-		Stock		Paid-in		Retained		Comprehensive
	Stock		Voting		Voting		Equivalents		Capital		Deficit		Loss, Net		Total
	(Unaudited)
	(In thousands, except per share amount)
Balance, December 31, 2024	$	498,516	$	1,586	$	5	$	98	$	3,785,725	$	( 431,201 )	$	( 354,780 )	$	3,499,949
Net earnings	—		—		—		—		—		53,568		—		53,568
Other comprehensive income,
net of tax	—		—		—		—		—		—		31,460		31,460
Restricted stock awarded and
earned stock compensation,
net of shares forfeited	—		2		—		—		5,493		—		—		5,495



Restricted stock surrendered	—		—		—		—		( 2,699 )		—		—		( 2,699 )
Shares purchased under
Dividend Reinvestment Plan	—		—		—		—		72		—		—		72
Shares repurchased under
Stock Repurchase Program
including excise tax	—		( 27 )		—		—		( 38,904 )		—		—		( 38,931 )
Cash dividends paid:
Preferred stoc k, $ 0.4845 /share	—		—		—		—		—		( 9,947 )		—		( 9,947 )
Common stoc k, $ 0.10 /share	—		—		—		—		( 17,311 )		—		—		( 17,311 )
Balance, March 31, 2025	$	498,516	$	1,561	$	5	$	98	$	3,732,376	$	( 387,580 )	$	( 323,320 )	$	3,521,656


	Three Months Ended March 31, 2025
				Non-Voting
		Common Stock		Common
	Preferred		Class B	Stock
	Stock	Voting	Non-Voting	Equivalents
	(Unaudited)
	(In ones)
Number of shares, December 31, 2024	513,250	158,557,735	477,321	9,790,600
Restricted stock awarded and earned stock
compensation, net of shares forfeited	—	440,587	—	—
Restricted stock surrendered	—	( 183,480 )	—	—
Shares purchased under Dividend Reinvestment Plan	—	5,146	—	—
Shares repurchased under Stock Repurchase Program	—	( 2,684,823 )	—	—
Number of shares, March 31, 2025	513,250	156,135,165	477,321	9,790,600

See Notes to Condensed Consolidated Financial Statements.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY


	Three Months Ended March 31, 2024
							Non-
			Common Stock				Voting						Accumulated
					Class B		Common		Additional				Other
	Preferred				Non-		Stock		Paid-in		Retained		Comprehensive
	Stock		Voting		Voting		Equivalents		Capital		Deficit		Loss, Net		Total
	(Unaudited)
	(In thousands, except per share amount)
Balance, December 31, 2023	$	498,516	$	1,577	$	5	$	108	$	3,840,974	$	( 518,301 )	$	( 432,114 )	$	3,390,765
Net earnings	—		—		—		—		—		30,852		—		30,852
Other comprehensive loss,
net of tax	—		—		—		—		—		—		( 4,322 )		( 4,322 )
Restricted stock awarded and
earned stock compensation,
net of shares forfeited	—		( 1 )		—		—		4,657		—		—		4,656
Conversion of non-voting
common stock equivalents
to voting common stock	—		7		—		( 7 )		—		—		—		—
Restricted stock surrendered	—		—		—		—		( 1,238 )		—		—		( 1,238 )
Shares repurchased under
Dividend Reinvestment Plan	—		—		—		—		70		—		—		70
Cash dividends paid:
Preferred stock, $ 0.4845 /share	—		—		—		—		—		( 9,947 )		—		( 9,947 )
Common stock, $ 0.10 /share	—		—		—		—		( 16,686 )		—		—		( 16,686 )
Balance, March 31, 2024	$	498,516	$	1,583	$	5	$	101	$	3,827,777	$	( 497,396 )	$	( 436,436 )	$	3,394,150


	Three Months Ended March 31, 2024
				Non-Voting
		Common Stock		Common
	Preferred		Class B	Stock
	Stock	Voting	Non-Voting	Equivalents
	(Unaudited)
	(In ones)
Number of shares, December 31, 2023	513,250	157,651,752	477,321	10,829,990
Restricted stock awarded and earned stock
compensation, net of shares forfeited	—	67,209	—	—
Restricted stock surrendered	—	( 17,364 )	—	—
Shares purchased under Dividend Reinvestment Plan	—	4,721	—	—
Conversion of non-voting CE to common stock voting	—	684,390	—	( 684,390 )
Number of shares, March 31, 2024	513,250	158,390,708	477,321	10,145,600

See Notes to Condensed Consolidated Financial Statements.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


	Three Months Ended
	March 31,
	2025		2024
	(Unaudited)
	(In thousands)
Cash flows from operating activities:
Net earnings	$	53,568	$	30,852
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:

Depreciation and amortization	13,027		13,875
Amortization of net premiums on investment securities	5,068		6,138
Accretion of net purchased loan discounts and deferred loan fees	( 21,181 )		( 24,087 )
Amortization of intangible assets	7,160		8,404
Amortization of operating lease ROU assets	5,895		8,204
Provision for credit losses	9,300		10,000
Loss (gain) on sale of foreclosed assets	17		( 321 )
Provision for losses on foreclosed assets	265		297
(Gain) loss on sale of loans and leases	( 211 )		448
Gain on sale of premises and equipment	—		( 1 )


Unrealized (gain) loss on derivatives, foreign currencies, and credit-linked notes, net	( 279 )		513
LOCOM HFS adjustment	—		( 330 )
Earned stock compensation	5,495		4,656


Decrease in other assets	12,301		31,579
Decrease in accrued interest payable and other liabilities	( 75,303 )		( 178,623 )
Net cash provided by (used in) operating activities	15,122		( 88,396 )

Cash flows from investing activities:

Net increase in loans and leases	( 337,351 )		( 202,957 )
Proceeds from sales of loans and leases	1,301		273,241
Proceeds from maturities and paydowns of securities available-for-sale	97,893		44,517

Purchases of securities available-for-sale	( 148,541 )		( 5,558 )
Proceeds from maturities and paydowns of securities held-to-maturity	310		294
Purchases of FHLB and FRB stock	( 7,557 )		( 2,968 )

Proceeds from sales of foreclosed assets	5,316		5,893
Purchases of premises and equipment, net	( 1,525 )		( 1,942 )
Proceeds from sales of premises and equipment	—		2

Net decrease (increase) in equipment leased to others under operating leases	5,415		( 3,120 )
Net cash (used in) provided by investing activities	( 384,739 )		107,402

Cash flows from financing activities:
Net (decrease) increase in noninterest-bearing deposits	( 125,963 )		59,354
Net increase (decrease) in interest-bearing deposits	127,245		( 1,568,716 )
Repayments of borrowings	( 1,014 )		( 1,074,191 )
Proceeds from borrowings	279,842		300,000


Common shares repurchased under Stock Repurchase Program	( 38,931 )		—
Common shares purchased under Dividend Reinvestment Plan	72		70
Restricted stock surrendered	( 2,699 )		( 1,238 )
Preferred stock dividends paid	( 9,947 )		( 9,947 )
Common stock dividends paid	( 17,311 )		( 16,686 )
Net cash provided by (used in) by financing activities	211,294		( 2,311,354 )

Net decrease in cash, cash equivalents, and restricted cash	( 158,323 )		( 2,292,348 )
Cash, cash equivalents, and restricted cash, beginning of period	2,502,212		5,377,576
Cash, cash equivalents, and restricted cash, end of period	$	2,343,889	$	3,085,228

See Notes to Condensed Consolidated Financial Statements.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


	Three Months Ended
	March 31,
	2025		2024
	(Unaudited)
	(In thousands)
Supplemental disclosures of cash flow information:
Cash paid for interest	$	180,996	$	360,934
Cash received for income taxes	( 256 )		( 7,193 )
Loans transferred to foreclosed assets	1,354		10,964
Transfers from loans held for investment to loans held for sale	—		7,466
Transfers to loans held for investment from loans held for sale	—		1,179

See Notes to Condensed Consolidated Financial Statements.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Banc of California, Inc., a Maryland corporation, was incorporated in March 2002 and serves as the holding company for its wholly owned subsidiary, Banc of California (the “Bank”), a California state-chartered bank and member of the FRB. When we refer to the “holding company," we are referring to Banc of California, Inc., the parent company, on a stand-alone basis. When we refer to “we,” “us,” “our,” or the “Company,” we are referring to Banc of California, Inc. and its consolidated subsidiaries including the Bank, collectively. As a bank holding company, Banc of California, Inc. is subject to ongoing and comprehensive supervision, regulation, examination, and enforcement by the FRB. As a California state-chartered bank and a member of the FRB, the Bank is subject to ongoing and comprehensive supervision, regulation, examination, and enforcement by the DFPI and the FRB. The Bank is also a member of the FHLB system, and its deposit accounts are insured by the Deposit Insurance Fund (the "DIF") of the FDIC.

Banc of California is one of the nation's premier relationship-based business banks, providing banking and treasury management services to small-, middle-market, and venture-backed businesses. The Bank offers a broad range of loan and deposit products and services through full-service branches throughout California and in Denver, Colorado, and Durham, North Carolina, as well as through regional offices nationwide. The Bank also provides full-stack payment processing solutions through its subsidiary, Deepstack Technologies, LLC. Banc of California also serves the community association management industry nationwide with its technology-forward platform SmartStreet™. The Bank is committed to its local communities by supporting organizations that provide financial literacy and job training, small business support, affordable housing, and more.

We generate our revenue primarily from interest received on loans and leases and, to a lesser extent, from interest received on investment securities, and fees received in connection with deposit services, extending credit and other services offered, including treasury management and investment management services. Our major operating expenses are interest paid by the Bank on deposits and borrowings, compensation expense, customer related expense, information technology and data processing expense, occupancy expense, and general operating expenses.

Significant Accounting Policies

Our accounting policies are described in Note 1. Nature of Operations and Summary of Significant Accounting Policies , of our audited consolidated financial statements included in our Annual R eport on Form 10-K for the year ended December 31, 2024 as filed with the SEC ("Form 10-K").

Recently Issued Accounting Standards Not Yet Adopted

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, " Income Taxes (Topic 740): Improvements to Income Tax Disclosures ." The standard, among other changes, improves annual income tax disclosures by requiring disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. The enhanced income tax disclosure requirements apply on a prospective basis to annual financial statements for periods beginning after December 15, 2024. However, retrospective application in all prior periods presented is permitted. The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, " Disaggregation of Income Statement Expenses ." The standard, among other changes, requires additional disclosure of the nature of expenses included in the income statement in response to longstanding requests from investors for more information about an entity’s expenses. The new standard requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The prescribed categories include, among other things, employee compensation, depreciation, and intangible asset amortization. In addition, companies will need to provide qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. In January 2025, the FASB also issued ASU 2025-01, " Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures-Clarifying the Effective Date," which amends the effective date of ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. The enhanced income statement expense disclosure requirements apply on a prospective basis. However, retrospective application in all prior periods presented is permitted. The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Basis of Presentation

The accounting and reporting policies of the Company are in accordance with U.S. generally accepted accounting principles, which we may refer to as U.S. GAAP. In the opinion of management, all significant intercompany accounts and transactions have been eliminated and adjustments, consisting solely of normal recurring accruals and considered necessary for the fair presentation of financial statements, have been included.

The interim condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K.

Use of Estimates

The Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period to prepare these consolidated financial statements in conformity with U.S. GAAP. Actual results could differ from those estimates. Material estimates subject to change in the near term include, among other items, the allowance for credit losses (the combination of the ALLL and the reserve for unfunded loan commitments), the carrying value of goodwill and other intangible assets, the fair value of assets and liabilities acquired in business combinations and the related purchase price allocation, and the realization of deferred tax assets. These estimates may be adjusted as more current information becomes available, and any adjustment may be significant.

NOTE 2. RESTRICTED CASH

The Company is required to maintain reserve balances with the FRBSF. Such reserve requirements are based on a percentage of deposit liabilities and may be satisfied by cash on hand. There were no average reserves required to be held at the FRBSF for the three months ended March 31, 2025 and 2024. The following restricted cash balances are included in "Interest-earning deposits in financial institutions" on the condensed consolidated balance sheets. As of March 31, 2025 and December 31, 2024, we pledged cash collateral for our derivative contracts of $ 9.4 million and $ 5.3 million. In connection with the issuance of the credit-linked notes on September 29, 2022, we established a correspondent bank account at a third party financial institution as the collateral account for the credit-linked notes. The repayment of principal on the credit-linked notes is secured by this collateral account, which had a balance of $ 118.6 million at March 31, 2025 and $ 119.6 million at December 31, 2024. Starting in the second quarter of 2023, we began to pledge cash to secure the standby letters of credit that we have issued on behalf of our customers. As of March 31, 2025 and December 31, 2024, the balance of such restricted cash totaled $ 59.8 million and $ 59.3 million.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 3. INVESTMENT SECURITIES

Securities Available-for-Sale

The following tables present amortized cost, gross unrealized gains and losses, and fair values of AFS securities as of the dates indicated:


	March 31, 2025
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Security Type	Cost		Gains		Losses		Value
	(In thousands)
Agency residential MBS	$	1,033,674	$	—	$	( 166,632 )	$	867,042

Agency commercial MBS	62,126		—		( 922 )		61,204
Agency residential CMOs	579,676		2,541		( 17,149 )		565,068
Municipal securities	602		—		( 5 )		597
Corporate debt securities	289,077		423		( 26,097 )		263,403
Private label residential CMOs	334,859		126		( 31,658 )		303,327
Collateralized loan obligations	243,485		59		( 659 )		242,885
Private label commercial MBS	12,533		—		( 1,087 )		11,446
Asset-backed securities	15,238		—		( 14 )		15,224
SBA securities	4,123		—		( 261 )		3,862
Total (1)	$	2,575,393	$	3,149	$	( 244,484 )	$	2,334,058

_________________________

(1) Excludes accrued interest receivable of $ 13.0 million at March 31, 2025 which is recorded in "Other assets" on the condensed consolidated balance sheets.


	December 31, 2024
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Security Type	Cost		Gains		Losses		Value
	(In thousands)
Agency residential MBS	$	1,051,601	$	—	$	( 189,761 )	$	861,840

Agency commercial MBS	52,610		—		( 1,046 )		51,564
Agency residential CMOs	467,319		223		( 20,911 )		446,631
Municipal securities	602		—		( 8 )		594
Corporate debt securities	289,098		—		( 31,386 )		257,712
Private label residential CMOs	352,615		7		( 35,712 )		316,910
Collateralized loan obligations	278,976		469		( 29 )		279,416
Private label commercial MBS	13,585		—		( 1,213 )		12,372
Asset-backed securities	15,674		—		( 74 )		15,600
SBA securities	4,564		—		( 364 )		4,200
Total (1)	$	2,526,644	$	699	$	( 280,504 )	$	2,246,839

_________________________

(1) Excludes accrued interest receivable of $ 12.6 million at December 31, 2024 which is recorded in "Other assets" on the condensed consolidated balance sheets.

As of March 31, 2025, AFS securities with a fair value of $ 3.9 million were pledged as collateral solely for public deposits.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Realized Gains and Losses on Securities Available-for-Sale

The were no sales of AFS securities for the three months ended March 31, 2025 and 2024.

Unrealized Losses on Securities Available-for-Sale

The following tables present the gross unrealized losses and fair values of AFS securities that were in unrealized loss positions as of the dates indicated:


	March 31, 2025
	Less Than 12 Months				12 Months or More				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Security Type	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
Agency residential MBS	$	—	$	—	$	867,042	$	( 166,632 )	$	867,042	$	( 166,632 )

Agency commercial MBS	49,911		( 41 )		11,293		( 881 )		61,204		( 922 )
Agency residential CMOs	27,981		( 66 )		104,865		( 17,083 )		132,846		( 17,149 )
Municipal securities	—		—		597		( 5 )		597		( 5 )
Corporate debt securities	—		—		240,730		( 26,097 )		240,730		( 26,097 )
Private label residential CMOs	97,388		( 285 )		129,803		( 31,373 )		227,191		( 31,658 )
Collateralized loan obligations	180,076		( 659 )		—		—		180,076		( 659 )
Private label commercial MBS	—		—		11,446		( 1,087 )		11,446		( 1,087 )
Asset-backed securities	15,224		( 14 )		—		—		15,224		( 14 )
SBA securities	—		—		3,862		( 261 )		3,862		( 261 )
Total	$	370,580	$	( 1,065 )	$	1,369,638	$	( 243,419 )	$	1,740,218	$	( 244,484 )


	December 31, 2024
	Less Than 12 Months				12 Months or More				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Security Type	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
Agency residential MBS	$	—	$	—	$	861,840	$	( 189,761 )	$	861,840	$	( 189,761 )

Agency commercial MBS	40,291		( 87 )		11,273		( 959 )		51,564		( 1,046 )
Agency residential CMOs	273,347		( 1,994 )		104,757		( 18,917 )		378,104		( 20,911 )
Municipal securities	—		—		594		( 8 )		594		( 8 )
Corporate debt securities	15,968		( 32 )		241,744		( 31,354 )		257,712		( 31,386 )
Private label residential CMOs	180,915		( 1,031 )		129,178		( 34,681 )		310,093		( 35,712 )
Collateralized loan obligations	38,771		( 29 )		—		—		38,771		( 29 )
Private label commercial MBS	—		—		12,372		( 1,213 )		12,372		( 1,213 )
Asset-backed securities	15,600		( 74 )		—		—		15,600		( 74 )
SBA securities	—		—		4,200		( 364 )		4,200		( 364 )
Total	$	564,892	$	( 3,247 )	$	1,365,958	$	( 277,257 )	$	1,930,850	$	( 280,504 )

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The securities that were in an unrealized loss position at March 31, 2025, were considered impaired and required further review to determine if the unrealized losses were credit-related. After completing such review, we concluded the unrealized losses were a result of the level of market interest rates relative to the types of securities and pricing changes caused by shifting supply and demand dynamics and not a result of downgraded credit ratings or other indicators of deterioration of the underlying issuers' ability to repay. We also considered the seniority of the tranches and U.S. government agency guarantees, if any, to assess whether an unrealized loss was credit-related. Accordingly, we determined the unrealized losses were not credit-related.

As of March 31, 2025, we believe there was no credit impairment as the decline in fair value of our securities since acquisition was primarily attributable to changes in interest rates and credit spreads. Further we do not currently intend to sell any of the securities in an unrealized loss position and it is not more likely than not the Company will be required to sell these securities before their anticipated recovery. As such, we recognized the unrealized losses in "Accumulated other comprehensive loss, net" of "Stockholders' equity" on the condensed consolidated balance sheets.

Contractual Maturities of Securities Available-for-Sale

The following tables present the contractual maturities of our AFS securities portfolio based on amortized cost and fair value as of the dates indicated:


	March 31, 2025
			Due After		Due After
	Due		One Year		Five Years		Due
	Within		Through		Through		After
Security Type	One Year		Five Years		Ten Years		Ten Years		Total
	(In thousands)
Amortized Cost:
Agency residential MBS	$	—	$	—	$	—	$	1,033,674	$	1,033,674

Agency commercial MBS	—		39,959		9,994		12,173		62,126
Agency residential CMOs	—		—		14,655		565,021		579,676
Municipal securities	—		602		—		—		602
Corporate debt securities	—		7,500		281,577		—		289,077
Private label residential CMOs	—		—		—		334,859		334,859
Collateralized loan obligations	—		—		136,918		106,567		243,485
Private label commercial MBS	—		—		580		11,953		12,533
Asset-backed securities	—		—		—		15,238		15,238
SBA securities	—		—		4,123		—		4,123
Total	$	—	$	48,061	$	447,847	$	2,079,485	$	2,575,393

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)


	March 31, 2025
			Due After		Due After
	Due		One Year		Five Years		Due
	Within		Through		Through		After
Security Type	One Year		Five Years		Ten Years		Ten Years		Total
	(In thousands)
Fair Value:
Agency residential MBS	$	—	$	—	$	—	$	867,042	$	867,042

Agency commercial MBS	—		39,928		9,983		11,293		61,204
Agency residential CMOs	—		—		14,775		550,293		565,068
Municipal securities	—		597		—		—		597
Corporate debt securities	—		7,354		256,049		—		263,403
Private label residential CMOs	—		—		—		303,327		303,327
Collateralized loan obligations	—		—		136,471		106,414		242,885
Private label commercial MBS	—		—		571		10,875		11,446
Asset-backed securities	—		—		—		15,224		15,224
SBA securities	—		—		3,862		—		3,862
Total	$	—	$	47,879	$	421,711	$	1,864,468	$	2,334,058

CMBS, CMOs, and MBS have contractual maturity dates, but require periodic payments based upon scheduled amortization terms. Actual principal collections on these securities usually occur more rapidly than the scheduled amortization terms because of prepayments made by obligors of the underlying loan collateral.

Securities Held-to-Maturity

The following tables present amortized cost, allowance for credit losses, gross unrealized gains and losses, and fair values of HTM securities as of the dates indicated:


	March 31, 2025
			Allowance
			for		Net		Gross		Gross
	Amortized		Credit		Carrying		Unrealized		Unrealized		Fair
Security Type	Cost		Losses		Amount		Gains		Losses		Value
	(In thousands)

Municipal securities	$	1,252,455	$	( 20 )	$	1,252,435	$	61	$	( 59,663 )	$	1,192,833
Agency commercial MBS	442,172		—		442,172		—		( 28,137 )		414,035
Private label commercial MBS	356,586		—		356,586		—		( 19,841 )		336,745
U.S. Treasury securities	190,726		—		190,726		—		( 12,291 )		178,435
Corporate debt securities	70,573		( 580 )		69,993		—		( 12,131 )		57,862





Total (1)	$	2,312,512	$	( 600 )	$	2,311,912	$	61	$	( 132,063 )	$	2,179,910

__________________________

(1) Excludes accrued interest receivable of $ 11.3 million at March 31, 2025 which is recorded in "Other assets" on the condensed consolidated balance sheets .

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)


	December 31, 2024
			Allowance
			for		Net		Gross		Gross
	Amortized		Credit		Carrying		Unrealized		Unrealized		Fair
Security Type	Cost		Losses		Amount		Gains		Losses		Value
	(In thousands)

Municipal securities	$	1,251,364	$	( 140 )	$	1,251,224	$	35	$	( 54,799 )	$	1,196,460
Agency commercial MBS	440,476		—		440,476		—		( 37,840 )		402,636
Private label commercial MBS	355,342		—		355,342		—		( 26,226 )		329,116
U.S. Treasury securities	189,985		—		189,985		—		( 16,702 )		173,283
Corporate debt securities	70,482		( 1,360 )		69,122		—		( 13,923 )		55,199





Total (1)	$	2,307,649	$	( 1,500 )	$	2,306,149	$	35	$	( 149,490 )	$	2,156,694

__________________________

(1) Excludes accrued interest receivable of $ 13.4 million at December 31, 2024 which is recorded in "Other assets" on the condensed consolidated balance sheets .

As of March 31, 2025, HTM securities with an amortized cost of $ 2.2 billion and a fair value of $ 2.1 billion were pledged as collateral for the FRB secured line of credit and public deposits.

Allowance for Credit Losses on Securities Held-to-Maturity

The following tables present the changes by major security type in our allowance for credit losses on HTM securities for the periods indicated:


	Three Months Ended March 31, 2025
	Allowance for		Provision						Allowance for
	Credit Losses,		for						Credit Losses,
	Beginning		Credit						End of
Security Type	of Period		Losses		Charge-offs		Recoveries		Period
	(In thousands)
Municipal securities	$	140	$	( 120 )	$	—	$	—	$	20
Corporate debt securities	1,360		( 780 )		—		—		580
Total	$	1,500	$	( 900 )	$	—	$	—	$	600


	Three Months Ended March 31, 2024
	Allowance for		Provision						Allowance for
	Credit Losses,		for						Credit Losses,
	Beginning		Credit						End of
Security Type	of Period		Losses		Charge-offs		Recoveries		Period
	(In thousands)
Municipal securities	$	140	$	—	$	—	$	—	$	140
Corporate debt securities	1,360		—		—		—		1,360
Total	$	1,500	$	—	$	—	$	—	$	1,500

Credit losses on HTM securities are recorded at the time of purchase, acquisition, or when the Company designates securities as held-to-maturity. Credit losses on HTM securities are representative of current expected credit losses that may be incurred over the life of the investment. Accrued interest receivable on HTM securities, which is included in other assets on the condensed consolidated balance sheets, is excluded from the estimate of expected credit losses. HTM U.S. treasury securities and agency-backed MBS securities are considered to have no risk of loss as they are either explicitly or implicitly guaranteed by the U.S. government. The change in fair value in the HTM private label CMBS portfolio is solely driven by changes in interest rates. The Company has no knowledge of any underlying credit issues and the cash flows underlying the debt securities have not changed and are not expected to be impacted by changes in interest rates and, thus, there is no related ACL for this portfolio. The underlying bonds in the Company’s HTM municipal securities and HTM corporate debt securities portfolios are evaluated for credit losses in conjunction with management’s estimate of the ACL based primarily on credit ratings.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Securities Held-to-Maturity by Credit Quality Indicator

The Company uses S&P, Moody's, Fitch, Kroll, and Egan Jones ratings as the credit quality indicators for its HTM securities. The following tables present our HTM securities portfolio at amortized cost by the lowest available credit rating as of the dates indicated:


	March 31, 2025
Security Type	AAA		AA+		AA		AA-		A		BBB		NR		Total
	(In thousands)
Amortized Cost:
Municipal securities	$	571,520	$	369,314	$	219,130	$	73,070	$	1,664	$	—	$	17,757	$	1,252,455
Agency commercial MBS	—		442,172		—		—		—		—		—		442,172
Private label commercial MBS	356,586		—		—		—		—		—		—		356,586
U.S. Treasury securities	—		190,726		—		—		—		—		—		190,726
Corporate debt securities	—		—		—		—		—		44,542		26,031		70,573
Total	$	928,106	$	1,002,212	$	219,130	$	73,070	$	1,664	$	44,542	$	43,788	$	2,312,512


	December 31, 2024
Security Type	AAA		AA+		AA		AA-		A		BBB		NR		Total
	(In thousands)
Amortized Cost:
Municipal securities	$	571,347	$	369,072	$	218,581	$	72,952	$	1,667	$	—	$	17,745	$	1,251,364
Agency commercial MBS	—		440,476		—		—		—		—		—		440,476
Private label commercial MBS	355,342		—		—		—		—		—		—		355,342
U.S. Treasury securities	—		189,985		—		—		—		—		—		189,985
Corporate debt securities	—		—		—		—		—		44,507		25,975		70,482
Total	$	926,689	$	999,533	$	218,581	$	72,952	$	1,667	$	44,507	$	43,720	$	2,307,649

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Contractual Maturities of Securities Held-to-Maturity

The following tables present the contractual maturities of our HTM securities portfolio based on amortized cost and fair value as of the date indicated:


	March 31, 2025
			Due After		Due After
	Due		One Year		Five Years		Due
	Within		Through		Through		After
Security Type	One Year		Five Years		Ten Years		Ten Years		Total
	(In thousands)
Amortized Cost:

Municipal securities	$	—	$	20,359	$	477,179	$	754,917	$	1,252,455
Agency commercial MBS	—		32,138		410,034		—		442,172
Private label commercial MBS	—		—		36,959		319,627		356,586
U.S. Treasury securities	—		—		190,726		—		190,726
Corporate debt securities	—		—		10,141		60,432		70,573





Total	$	—	$	52,497	$	1,125,039	$	1,134,976	$	2,312,512


	March 31, 2025
			Due After		Due After
	Due		One Year		Five Years		Due
	Within		Through		Through		After
Security Type	One Year		Five Years		Ten Years		Ten Years		Total
	(In thousands)
Fair Value:

Municipal securities	$	—	$	20,333	$	459,469	$	713,031	$	1,192,833
Agency commercial MBS	—		30,082		383,953		—		414,035
Private label commercial MBS	—		—		35,137		301,608		336,745
U.S. Treasury securities	—		—		178,435		—		178,435
Corporate debt securities	—		—		9,800		48,062		57,862





Total	$	—	$	50,415	$	1,066,794	$	1,062,701	$	2,179,910

Commercial MBS have contractual maturity dates, but require periodic payments based upon scheduled amortization terms. Actual principal collections on these securities usually occur more rapidly than the scheduled amortization terms because of prepayments made by obligors of the underlying loan collateral.

Interest Income on Investment Securities

The following table presents the composition of our interest income on AFS and HTM investment securities for the periods indicated:


	Three Months Ended
	March 31,
	2025		2024
	(In thousands)
Taxable interest	$	31,447	$	27,601
Non-taxable interest	4,517		4,720
Dividend income	1,898		1,982
Total interest income on investment securities	$	37,862	$	34,303

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 4. LOANS AND LEASES

Our loans are carried at the principal amount outstanding, net of deferred fees and costs, and in the case of acquired and purchased loans, net of purchase discounts and premiums. Deferred fees and costs and purchase discounts and premiums on acquired loans are recognized as an adjustment to interest income over the contractual life of the loans primarily using the effective interest method or taken into income when the related loans are paid off or included in the carrying amount of loans that are sold.

Loans and Leases Held for Investment

The following table summarizes the composition of our loans and leases held for investment as of the dates indicated:


	March 31,		December 31,
	2025		2024
	(In thousands)
Real estate mortgage	$	13,655,592	$	13,605,595
Real estate construction and land (1)	2,873,608		3,187,146
Commercial	7,392,651		6,788,923
Consumer	392,953		402,254
Total gross loans and leases held for investment	24,314,804		23,983,918
Unearned discounts, net (2)	( 157,921 )		( 175,713 )
Deferred fees, net	( 30,356 )		( 26,542 )
Total loans and leases held for investment	24,126,527		23,781,663
Allowance for loan and lease losses	( 234,986 )		( 239,360 )
Total loans and leases held for investment, net (3)	$	23,891,541	$	23,542,303

____________________

(1) Includes land and acquisition and development loans of $ 221.4 million and $ 223.9 million at March 31, 2025 and December 31, 2024 .

(2) Represents net acquisition discounts of $ 217.1 million and purchase premiums of $ 59.2 million at March 31, 2025, and net acquisition discounts of $ 235.2 million and purchase premiums of $ 59.5 million at December 31, 2024 .

(3) Excludes accrued interest receivable of $ 98.9 million and $ 96.8 million at March 31, 2025 and December 31, 2024, respectively, which is recorded in "Other assets" on the condensed consolidated balance sheets.

The following tables present an aging analysis of our loans and leases held for investment by loan portfolio segment and class as of the dates indicated:


	March 31, 2025
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	54,667	$	37,433	$	92,100	$	4,397,443	$	4,489,543
Multi-family	1,795		21,734		23,529		6,192,555		6,216,084
Other residential	39,364		34,411		73,775		2,713,256		2,787,031
Total real estate mortgage	95,826		93,578		189,404		13,303,254		13,492,658
Real estate construction and land:
Commercial	—		—		—		733,684		733,684
Residential	—		—		—		2,127,354		2,127,354
Total real estate construction and land	—		—		—		2,861,038		2,861,038
Commercial:
Asset-based	524		993		1,517		2,303,808		2,305,325
Venture capital	—		—		—		1,733,074		1,733,074
Other commercial	2,162		4,581		6,743		3,333,657		3,340,400
Total commercial	2,686		5,574		8,260		7,370,539		7,378,799
Consumer	2,152		824		2,976		391,056		394,032
Total	$	100,664	$	99,976	$	200,640	$	23,925,887	$	24,126,527

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)


	December 31, 2024
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	27,700	$	22,561	$	50,261	$	4,528,511	$	4,578,772
Multi-family	10,346		21,860		32,206		6,009,507		6,041,713
Other residential	39,873		36,976		76,849		2,730,325		2,807,174
Total real estate mortgage	77,919		81,397		159,316		13,268,343		13,427,659
Real estate construction and land:
Commercial	—		—		—		799,131		799,131
Residential	—		—		—		2,373,162		2,373,162
Total real estate construction and land	—		—		—		3,172,293		3,172,293
Commercial:
Asset-based	1,795		—		1,795		2,086,174		2,087,969
Venture capital	5,534		—		5,534		1,532,242		1,537,776
Other commercial	3,295		6,956		10,251		3,142,833		3,153,084
Total commercial	10,624		6,956		17,580		6,761,249		6,778,829
Consumer	2,804		493		3,297		399,585		402,882
Total	$	91,347	$	88,846	$	180,193	$	23,601,470	$	23,781,663

It is our policy to discontinue accruing interest when principal or interest payments are past due 90 days or more (unless the loan is both well secured and in the process of collection) or when, in the opinion of management, there is a reasonable doubt as to the collectability of a loan or lease in the normal course of business. Interest income on nonaccrual loans is recognized only to the extent cash is received and the principal balance of the loan is deemed collectable.

The following table presents our nonaccrual and performing loans and leases held for investment by loan portfolio segment and class as of the dates indicated:


	March 31, 2025						December 31, 2024
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Commercial	$	131,595	$	4,357,948	$	4,489,543	$	97,655	$	4,481,117	$	4,578,772
Multi-family	22,614		6,193,470		6,216,084		22,763		6,018,950		6,041,713
Other residential	44,739		2,742,292		2,787,031		46,788		2,760,386		2,807,174
Total real estate mortgage	198,948		13,293,710		13,492,658		167,206		13,260,453		13,427,659
Real estate construction and land:
Commercial	—		733,684		733,684		—		799,131		799,131
Residential	—		2,127,354		2,127,354		—		2,373,162		2,373,162
Total real estate construction and land	—		2,861,038		2,861,038		—		3,172,293		3,172,293
Commercial:
Asset-based	3,640		2,301,685		2,305,325		1,940		2,086,029		2,087,969
Venture capital	163		1,732,911		1,733,074		6,291		1,531,485		1,537,776
Other commercial	9,737		3,330,663		3,340,400		13,544		3,139,540		3,153,084
Total commercial	13,540		7,365,259		7,378,799		21,775		6,757,054		6,778,829
Consumer	992		393,040		394,032		624		402,258		402,882
Total	$	213,480	$	23,913,047	$	24,126,527	$	189,605	$	23,592,058	$	23,781,663

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

At March 31, 2025, nonaccrual loans and leases included $ 100.0 million of loans and leases 90 or more days past due, $ 42.7 million of loans and leases 30 to 89 days past due, and $ 70.8 million of loans and leases current with respect to contractual payments that were placed on nonaccrual status based on management’s judgment regarding their collectability. At December 31, 2024, nonaccrual loans and leases included $ 88.8 million of loans and leases 90 or more days past due, $ 40.6 million of loans and leases 30 to 89 days past due, and $ 60.2 million of current loans and leases that were placed on nonaccrual status based on management’s judgment regarding their collectability.

As of March 31, 2025, our three largest loan relationships on nonaccrual status had an aggregate carrying value of $ 73.9 million and represented 35 % of total nonaccrual loans and leases.

The following tables present the credit risk rating categories for loans and leases held for investment by loan portfolio segment and class as of the dates indicated. Classified loans and leases are those with a credit risk rating of either substandard or doubtful.


	March 31, 2025
	Classified		Special Mention		Pass		Total
	(In thousands)
Real estate mortgage:
Commercial	$	317,427	$	300,298	$	3,871,818	$	4,489,543
Multi-family	216,093		149,159		5,850,832		6,216,084
Other residential	44,757		1,260		2,741,014		2,787,031
Total real estate mortgage	578,277		450,717		12,463,664		13,492,658
Real estate construction and land:
Commercial	69,324		224,152		440,208		733,684
Residential	3,120		39,730		2,084,504		2,127,354
Total real estate construction and land	72,444		263,882		2,524,712		2,861,038
Commercial:
Asset-based	3,640		37,746		2,263,939		2,305,325
Venture capital	84,412		153,942		1,494,720		1,733,074
Other commercial	24,676		25,489		3,290,235		3,340,400
Total commercial	112,728		217,177		7,048,894		7,378,799
Consumer	1,274		5,238		387,520		394,032
Total	$	764,723	$	937,014	$	22,424,790	$	24,126,527


	December 31, 2024
	Classified		Special Mention		Pass		Total
	(In thousands)
Real estate mortgage:
Commercial	$	301,278	$	348,014	$	3,929,480	$	4,578,772
Multi-family	113,164		202,690		5,725,859		6,041,713
Other residential	47,993		14,351		2,744,830		2,807,174
Total real estate mortgage	462,435		565,055		12,400,169		13,427,659
Real estate construction and land:
Commercial	—		148,024		651,107		799,131
Residential	—		203,220		2,169,942		2,373,162
Total real estate construction and land	—		351,244		2,821,049		3,172,293
Commercial:
Asset-based	5,003		9,547		2,073,419		2,087,969
Venture capital	75,406		125,320		1,337,050		1,537,776
Other commercial	19,949		38,741		3,094,394		3,153,084
Total commercial	100,358		173,608		6,504,863		6,778,829
Consumer	709		7,408		394,765		402,882
Total	$	563,502	$	1,097,315	$	22,120,846	$	23,781,663

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table presents our nonaccrual loans and leases by loan portfolio segment and class and by with and without an allowance recorded as of the date indicated and interest income recognized on nonaccrual loans and leases for the periods indicated:


			Three Months				Three Months
			Ended				Ended
	March 31,		March 31,		March 31,		March 31,
	2025		2025		2024		2024
	Nonaccrual		Interest		Nonaccrual		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Commercial	$	7,318	$	—	$	32,106	$	—
Multi-family	—		—		—		—
Other residential	167		—		389		—
Real estate construction and land:
Commercial	—		—		—		—
Residential	—		—		—		—
Commercial:
Asset-based	1,343		—		701		—
Venture capital	163		—		—		—
Other commercial	4,254		—		816		—
Consumer	992		—		832		—
With No Related Allowance
Recorded:
Real estate mortgage:
Commercial	$	124,277	$	5	$	34,421	$	5
Multi-family	22,614		—		953		—
Other residential	44,572		—		61,365		—
Real estate construction and land:
Commercial	—		—		—		—
Residential	—		—		—		—
Commercial:
Asset-based	2,297		—		1,624		—
Venture capital	—		—		—		—
Other commercial	5,483		—		12,574		—
Consumer	—		—		4		—
Total Loans and Leases With and
Without an Allowance Recorded:
Real estate mortgage	$	198,948	$	5	$	129,234	$	5
Real estate construction and land	—		—		—		—
Commercial	13,540		—		15,715		—
Consumer	992		—		836		—
Total	$	213,480	$	5	$	145,785	$	5

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following tables present our loans held for investment by loan portfolio segment and class, by credit quality indicator (internal risk ratings), and by year of origination (vintage year) as of the dates indicated:


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
March 31, 2025	2025		2024		2023		2022		2021		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Mortgage:
Commercial
Internal risk rating:
1-2 High pass	$	—	$	1,688	$	—	$	30,897	$	27,051	$	83,098	$	—	$	—	$	142,734
3-4.5 Pass	38,604		235,421		125,387		794,202		654,529		1,785,086		67,214		28,641		3,729,084
5 Special mention	—		—		23,902		29,878		49,910		194,648		1,960		—		300,298
6-8 Classified	—		13,587		4,394		57,898		57,536		184,012		—		—		317,427
Total	$	38,604	$	250,696	$	153,683	$	912,875	$	789,026	$	2,246,844	$	69,174	$	28,641	$	4,489,543
Current YTD period:
Gross charge-offs	$	—	$	—	$	51	$	—	$	19	$	4,937	$	—	$	—	$	5,007

Real Estate Mortgage:
Multi-family
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	42,811	$	200,364	$	165,442	$	—	$	—	$	408,617
3-4.5 Pass	167,154		222,993		79,717		2,111,873		1,131,682		1,719,172		9,624		—		5,442,215
5 Special mention	—		—		—		94,140		35,087		5,532		—		14,400		149,159
6-8 Classified	—		—		—		64,974		67,214		83,905		—		—		216,093
Total	$	167,154	$	222,993	$	79,717	$	2,313,798	$	1,434,347	$	1,974,051	$	9,624	$	14,400	$	6,216,084
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real Estate Mortgage:
Other residential
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	3,198	$	—	$	3,198
3-4.5 Pass	39,229		( 493 )		28,693		334,119		2,193,054		96,367		46,781		66		2,737,816
5 Special mention	—		—		—		988		—		272		—		—		1,260
6-8 Classified	( 302 )		—		1,059		16,305		26,536		992		167		—		44,757
Total	$	38,927	$	( 493 )	$	29,752	$	351,412	$	2,219,590	$	97,631	$	50,146	$	66	$	2,787,031
Current YTD period:
Gross charge-offs	$	—	$	—	$	4	$	649	$	129	$	—	$	—	$	—	$	782

____________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
March 31, 2025	2025		2024		2023		2022		2021		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Construction
and Land: Commercial
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4.5 Pass	971		36,231		60,498		272,166		40,435		29,907		—		—		440,208
5 Special mention	—		—		—		126,496		69,983		—		27,673		—		224,152
6-8 Classified	—		—		—		—		69,324		—		—		—		69,324
Total	$	971	$	36,231	$	60,498	$	398,662	$	179,742	$	29,907	$	27,673	$	—	$	733,684
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real Estate Construction
and Land: Residential
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4.5 Pass	17,045		99,905		222,223		1,025,600		494,188		154,669		70,874		—		2,084,504
5 Special mention	—		—		—		39,730		—		—		—		—		39,730
6-8 Classified	—		—		—		—		3,120		—		—		—		3,120
Total	$	17,045	$	99,905	$	222,223	$	1,065,330	$	497,308	$	154,669	$	70,874	$	—	$	2,127,354
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial: Asset-Based
Internal risk rating:
1-2 High pass	$	—	$	37,079	$	35,007	$	154,043	$	203,484	$	243,335	$	188,613	$	—	$	861,561
3-4.5 Pass	35,516		70,700		86,508		171,446		81,225		41,014		811,040		104,929		1,402,378
5 Special mention	—		—		194		5,567		—		—		31,985		—		37,746
6-8 Classified	—		—		—		1,344		—		—		2,296		—		3,640
Total	$	35,516	$	107,779	$	121,709	$	332,400	$	284,709	$	284,349	$	1,033,934	$	104,929	$	2,305,325
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial: Venture
Capital
Internal risk rating:
1-2 High pass	$	( 114 )	$	( 133 )	$	( 97 )	$	—	$	414	$	2,096	$	75,497	$	23,752	$	101,415
3-4.5 Pass	953		106,826		101,916		32,508		80,640		9,603		988,547		72,312		1,393,305
5 Special mention	—		10,010		43,355		50,884		15,367		10,657		19,505		4,164		153,942
6-8 Classified	—		14,873		14,990		—		162		—		54,387		—		84,412
Total	$	839	$	131,576	$	160,164	$	83,392	$	96,583	$	22,356	$	1,137,936	$	100,228	$	1,733,074
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	5,121	$	—	$	—	$	—	$	5,121

____________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
March 31, 2025	2025		2024		2023		2022		2021		Prior		Loans		Loans		Total
	(In thousands)
Commercial: Other
Commercial
Internal risk rating:
1-2 High pass	$	2	$	1,055	$	228	$	20,696	$	2,706	$	( 44 )	$	55,708	$	—	$	80,351
3-4.5 Pass	149,240		67,275		74,812		80,265		187,665		173,706		2,415,680		61,241		3,209,884
5 Special mention	—		4,499		8,939		—		9,571		74		1,553		853		25,489
6-8 Classified	—		—		1,394		3,972		157		4,448		11,415		3,290		24,676
Total	$	149,242	$	72,829	$	85,373	$	104,933	$	200,099	$	178,184	$	2,484,356	$	65,384	$	3,340,400
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	42	$	229	$	85	$	4,052	$	53	$	4,461

Consumer
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	19	$	13	$	—	$	726	$	—	$	758
3-4.5 Pass	8,622		31,769		17,466		57,517		169,532		95,999		5,655		202		386,762
5 Special mention	—		—		—		1,158		2,853		1,227		—		—		5,238
6-8 Classified	—		—		—		482		402		381		—		9		1,274
Total	$	8,622	$	31,769	$	17,466	$	59,176	$	172,800	$	97,607	$	6,381	$	211	$	394,032
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	178	$	602	$	399	$	1	$	—	$	1,180

Total Loans and Leases
Internal risk rating:
1-2 High pass	$	( 112 )	$	39,689	$	35,138	$	248,466	$	434,032	$	493,927	$	323,742	$	23,752	$	1,598,634
3-4.5 Pass	457,334		870,627		797,220		4,879,696		5,032,950		4,105,523		4,415,415		267,391		20,826,156
5 Special mention	—		14,509		76,390		348,841		182,771		212,410		82,676		19,417		937,014
6-8 Classified	( 302 )		28,460		21,837		144,975		224,451		273,738		68,265		3,299		764,723
Total	$	456,920	$	953,285	$	930,585	$	5,621,978	$	5,874,204	$	5,085,598	$	4,890,098	$	313,859	$	24,126,527
Current YTD period:
Gross charge-offs	$	—	$	—	$	55	$	869	$	6,100	$	5,421	$	4,053	$	53	$	16,551

______________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
December 31, 2024	2024		2023		2022		2021		2020		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Mortgage:
Commercial
Internal risk rating:
1-2 High pass	$	1,694	$	—	$	26,166	$	22,821	$	8,089	$	78,588	$	1	$	—	$	137,359
3-4.5 Pass	232,808		132,389		800,877		682,806		450,822		1,407,314		56,481		28,624		3,792,121
5 Special mention	—		23,844		123,589		24,364		—		176,217		—		—		348,014
6-8 Classified	13,587		1,765		27,579		68,488		20,853		169,006		—		—		301,278
Total	$	248,089	$	157,998	$	978,211	$	798,479	$	479,764	$	1,831,125	$	56,482	$	28,624	$	4,578,772
Current YTD period:
Gross charge-offs	$	—	$	—	$	175	$	12,217	$	9,714	$	1,481	$	—	$	—	$	23,587

Real Estate Mortgage:
Multi-family
Internal risk rating:
1-2 High pass	$	—	$	—	$	55,847	$	214,583	$	62,942	$	129,163	$	—	$	—	$	462,535
3-4.5 Pass	223,333		60,137		2,037,864		1,154,452		451,602		1,324,816		11,120		—		5,263,324
5 Special mention	—		—		112,963		35,065		—		40,262		—		14,400		202,690
6-8 Classified	—		—		40,018		33,877		4,751		34,518		—		—		113,164
Total	$	223,333	$	60,137	$	2,246,692	$	1,437,977	$	519,295	$	1,528,759	$	11,120	$	14,400	$	6,041,713
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real Estate Mortgage:
Other residential
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	3,510	$	—	$	3,510
3-4.5 Pass	( 562 )		31,318		336,719		2,235,006		53,094		43,510		42,158		77		2,741,320
5 Special mention	—		310		8,121		5,644		—		276		—		—		14,351
6-8 Classified	—		3,571		25,616		17,189		—		1,448		169		—		47,993
Total	$	( 562 )	$	35,199	$	370,456	$	2,257,839	$	53,094	$	45,234	$	45,837	$	77	$	2,807,174
Current YTD period:
Gross charge-offs	$	—	$	3,445	$	29,099	$	6,394	$	350	$	67	$	175	$	—	$	39,530

____________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
December 31, 2024	2024		2023		2022		2021		2020		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Construction
and Land: Commercial
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4.5 Pass	29,674		47,183		404,732		115,729		45,576		8,213		—		—		651,107
5 Special mention	10,501		—		—		111,933		—		—		25,590		—		148,024
6-8 Classified	—		—		—		—		—		—		—		—		—
Total	$	40,175	$	47,183	$	404,732	$	227,662	$	45,576	$	8,213	$	25,590	$	—	$	799,131
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real Estate Construction
and Land: Residential
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4.5 Pass	97,488		194,405		1,113,955		436,335		224,511		—		103,248		—		2,169,942
5 Special mention	—		—		143,136		60,084		—		—		—		—		203,220
6-8 Classified	—		—		—		—		—		—		—		—		—
Total	$	97,488	$	194,405	$	1,257,091	$	496,419	$	224,511	$	—	$	103,248	$	—	$	2,373,162
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial: Asset-Based
Internal risk rating:
1-2 High pass	$	39,542	$	37,081	$	163,918	$	222,942	$	15,730	$	251,167	$	195,994	$	—	$	926,374
3-4.5 Pass	100,098		88,514		180,433		68,372		9,653		34,331		618,036		47,608		1,147,045
5 Special mention	—		194		5,569		—		—		—		3,784		—		9,547
6-8 Classified	—		—		—		—		—		—		5,003		—		5,003
Total	$	139,640	$	125,789	$	349,920	$	291,314	$	25,383	$	285,498	$	822,817	$	47,608	$	2,087,969
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	92	$	—	$	—	$	—	$	92

Commercial: Venture
Capital
Internal risk rating:
1-2 High pass	$	( 92 )	$	( 100 )	$	—	$	414	$	2,101	$	—	$	72,745	$	23,426	$	98,494
3-4.5 Pass	100,854		104,022		79,659		76,224		3,784		17,749		777,199		79,065		1,238,556
5 Special mention	1,396		56,973		( 1 )		29,973		—		—		36,979		—		125,320
6-8 Classified	14,895		—		12,821		20,182		—		—		27,508		—		75,406
Total	$	117,053	$	160,895	$	92,479	$	126,793	$	5,885	$	17,749	$	914,431	$	102,491	$	1,537,776
Current YTD period:
Gross charge-offs	$	—	$	2,272	$	—	$	14,000	$	—	$	2	$	140	$	—	$	16,414

____________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
December 31, 2024	2024		2023		2022		2021		2020		Prior		Loans		Loans		Total
	(In thousands)
Commercial: Other
Commercial
Internal risk rating:
1-2 High pass	$	685	$	241	$	20,873	$	3,360	$	10	$	( 83 )	$	73,596	$	—	$	98,682
3-4.5 Pass	66,097		98,878		117,846		199,252		39,244		160,030		2,252,507		61,858		2,995,712
5 Special mention	6,462		8,912		2,880		144		—		127		20,073		143		38,741
6-8 Classified	—		1,397		1,243		2,365		—		5,836		8,234		874		19,949
Total	$	73,244	$	109,428	$	142,842	$	205,121	$	39,254	$	165,910	$	2,354,410	$	62,875	$	3,153,084
Current YTD period:
Gross charge-offs	$	—	$	—	$	1,144	$	500	$	1,696	$	3,159	$	2,712	$	605	$	9,816

Consumer
Internal risk rating:
1-2 High pass	$	—	$	—	$	20	$	15	$	1	$	—	$	932	$	—	$	968
3-4.5 Pass	31,034		19,181		59,594		176,189		18,658		82,678		6,231		232		393,797
5 Special mention	—		—		1,327		4,179		142		1,760		—		—		7,408
6-8 Classified	—		—		32		283		34		350		—		10		709
Total	$	31,034	$	19,181	$	60,973	$	180,666	$	18,835	$	84,788	$	7,163	$	242	$	402,882
Current YTD period:
Gross charge-offs	$	—	$	198	$	790	$	2,733	$	352	$	1,427	$	4	$	—	$	5,504

Total Loans and Leases
Internal risk rating:
1-2 High pass	$	41,829	$	37,222	$	266,824	$	464,135	$	88,873	$	458,835	$	346,778	$	23,426	$	1,727,922
3-4.5 Pass	880,824		776,027		5,131,679		5,144,365		1,296,944		3,078,641		3,866,980		217,464		20,392,924
5 Special mention	18,359		90,233		397,584		271,386		142		218,642		86,426		14,543		1,097,315
6-8 Classified	28,482		6,733		107,309		142,384		25,638		211,158		40,914		884		563,502
Total	$	969,494	$	910,215	$	5,903,396	$	6,022,270	$	1,411,597	$	3,967,276	$	4,341,098	$	256,317	$	23,781,663
Current YTD period:
Gross charge-offs	$	—	$	5,915	$	31,208	$	35,844	$	12,204	$	6,136	$	3,031	$	605	$	94,943

____________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Loan Modifications

The following tables present our loan modifications made to borrowers experiencing financial difficulty by type of modification for the periods indicated with related amortized cost balances as of the dates indicated:


	Three Months Ended March 31, 2025
	Loan Modifications
	Balances (Amortized Cost Basis) at
	March 31, 2025
													Combination - Term
									Combination - Term				Extension,
									Extension and				Rate Reduction				Total Loan
	Term Extension				Payment Delay				Rate Reduction				and Payment Delay				Modifications
			% of				% of				% of				% of				% of
			Loan				Loan				Loan				Loan				Loan
			Portfolio				Portfolio				Portfolio				Portfolio				Portfolio
	Balance		Class		Balance		Class		Balance		Class		Balance		Class		Balance		Class
	(Dollars in thousands)
Real estate mortgage:
Commercial	$	61,021	1.4	%	$	1,599	—	%	$	—	—	%	$	—	—	%	$	62,620	1.4	%
Multi-family	39,472		0.6	%	—		—	%	—		—	%	—		—	%	39,472		0.6	%
Other residential	972		—	%	2,500		0.1	%	—		—	%	—		—	%	3,472		0.1	%
Real estate
construction
and land:

Residential	3,120		0.1	%	—		—	%	—		—	%	—		—	%	3,120		0.1	%
Commercial:
Asset-based	2,296		0.1	%	—		—	%	—		—	%	—		—	%	2,296		0.1	%
Venture capital	7,393		0.4	%	—		—	%	—		—	%	—		—	%	7,393		0.4	%
Other commercial	2,154		0.1	%	—		—	%	355		—	%	146		—	%	2,655		0.1	%

Total	$	116,428			$	4,099			$	355			$	146			$	121,028


	Three Months Ended March 31, 2024
	Loan Modifications
	Balances (Amortized Cost Basis) at
	March 31, 2024



	Term Extension
			% of
			Loan
			Portfolio
	Balance		Class
	(Dollars in thousands)
Real estate mortgage:
Commercial	$	1,250	—	%

Other residential	1,837		—	%



Commercial:


Other commercial	2,827		0.1	%

Total	$	5,914

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following tables present the financial effect of our loan modifications made to borrowers experiencing financial difficulty by type of modification for the periods indicated:

Three Months Ended March 31, 2025

Term Extension - Financial Effect

Real estate mortgage:

Commercial

Extended maturity by a weighted average 13 months.

Multi-family

Extended maturity by a weighted average 5 months.

Other residential

Extended maturity by a weighted average 9 months.

Real estate construction and land:

Residential

Extended maturity by a weighted average 12 months.

Commercial:

Asset-based

Extended maturity by a weighted average 10 months.

Venture capital

Extended maturity by a weighted average 12 months.

Other commercial

Extended maturity by a weighted average 16 months.

Three Months Ended March 31, 2025

Payment Delay - Financial Effect

Real estate mortgage:

Commercial

Deferred partial payments for 6 months.

Other residential

Deferred partial payments for 3 months.

Three Months Ended March 31, 2025

Combination - Term Extension and Rate Reduction - Financial Effect

Commercial:

Other commercial

Extended maturity by a weighted average 4.7 years and reduced interest rates by a weighted average 1.95 %.

Three Months Ended March 31, 2025

Term Extension, Rate Reduction and Payment Delay - Financial Effect

Commercial:

Other commercial

Extended maturity by a weighted average 5.1 years, reduced interest rates by a weighted average 5.75 %, and granted 3 months of payment deferrals.

Three Months Ended March 31, 2024

Term Extension - Financial Effect

Real estate mortgage:

Commercial

Extended maturity by a weighted average 5 months.

Other residential

Extended maturity by a weighted average 12 months.

Commercial:

Other commercial

Extended maturity by a weighted average 3 months.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following tables present the payment status of loans that were modified during the preceding 12-month period, with related amortized cost balances, as of the dates indicated:


	Payment Status (Amortized Cost Basis) at
	March 31, 2025
			30-89 Days		90 or More Days
	Current		Past Due		Past Due		Total
	(In thousands)
Real estate mortgage:
Commercial	$	186,826	$	—	$	7,130	$	193,956
Multi-family	39,472		—		—		39,472
Other residential	4,142		—		727		4,869
Real estate construction and land:

Residential	3,120		—		—		3,120
Commercial:
Asset-based	2,296		—		—		2,296
Venture capital	13,116		—		—		13,116
Other commercial	3,246		1,399		—		4,645
Consumer	8		—		—		8
Total	$	252,226	$	1,399	$	7,857	$	261,482


	Payment Status (Amortized Cost Basis) at
	March 31, 2024
			30-89 Days		90 or More Days
	Current		Past Due		Past Due		Total
	(In thousands)
Real estate mortgage:
Commercial	$	2,250	$	—	$	—	$	2,250

Other residential	2,953		90		1,715		4,758



Commercial:


Other commercial	4,910		—		—		4,910
Consumer	13		—		—		13
Total	$	10,126	$	90	$	1,715	$	11,931

The following tables present information on loans that defaulted during the periods indicated, which had been modified during the preceding 12-month period, with related amortized cost balances as of the dates indicated:

Three Months Ended

March 31, 2025

Modified Loans That

Subsequently Defaulted

Amortized Cost Basis at

March 31, 2025

Term Extension

(In thousands)

Commercial:

Other commercial

1,399

Total

1,399

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Three Months Ended

March 31, 2024

Modified Loans That

Subsequently Defaulted

Amortized Cost Basis at

March 31, 2024

Term Extension

(In thousands)

Real estate mortgage:

Other residential

2,204

Total

2,204

Leases Receivable

We provide equipment financing to our customers primarily with operating and direct financing leases. For direct financing leases, lease receivables are recorded on the balance sheet, but the leased equipment is not, although we generally retain legal title to the leased equipment until the end of each lease. Direct financing leases are stated at the net amount of minimum lease payments receivable, plus any unguaranteed residual value, less the amount of unearned income and net acquisition discount at the reporting date. Direct lease origination costs are amortized using the effective interest method over the life of the leases. Direct financing leases are subject to our accounting for ALLL. See Note 7. Leases for information regarding operating leases where we are the lessor.

The following table provides the components of leases receivable income for the periods indicated:


	Three Months Ended
	March 31,
	2025		2024
	(In thousands)
Component of leases receivable income:
Interest income on net investments in leases	$	4,055	$	4,735

The following table presents the components of leases receivable as of the dates indicated:


	March 31, 2025		December 31, 2024
	(In thousands)
Net Investment in Direct Financing Leases:
Lease payments receivable	$	183,539	$	202,815
Unguaranteed residual assets	21,928		22,489
Deferred costs and other	1,730		1,955
Aggregate net investment in leases	$	207,197	$	227,259

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table presents maturities of leases receivable as of the date indicated:


	March 31, 2025
	(In thousands)
Period ending December 31,
2025	$	53,211
2026	56,995
2027	41,810
2028	27,078
2029	20,169
Thereafter	5,229
Total undiscounted cash flows	204,492
Less: Unearned income	( 20,953 )
Present value of lease payments	$	183,539

Allowance for Loan and Lease Losses

The following tables present a summary of the activity in the ALLL on loans and leases held for investment by loan portfolio segment for the periods indicated:
















	Three Months Ended March 31, 2025
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	145,754	$	10,940	$	67,833	$	14,833	$	239,360

Charge-offs	( 5,789 )		—		( 9,582 )		( 1,180 )		( 16,551 )
Recoveries	311		—		2,104		62		2,477
Net charge-offs	( 5,478 )		—		( 7,478 )		( 1,118 )		( 14,074 )
Provision	( 10,160 )		3,184		15,634		1,042		9,700
Balance, end of period	$	130,116	$	14,124	$	75,989	$	14,757	$	234,986

Ending Allowance by
Evaluation Methodology:
Individually evaluated	$	1,702	$	—	$	1,625	$	—	$	3,327
Collectively evaluated	$	128,414	$	14,124	$	74,364	$	14,757	$	231,659

Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated	$	198,839	$	—	$	11,371	$	—	$	210,210
Collectively evaluated	13,293,819		2,861,038		7,367,428		394,032		23,916,317
Ending balance	$	13,492,658	$	2,861,038	$	7,378,799	$	394,032	$	24,126,527

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)
















	Three Months Ended March 31, 2024
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	186,827	$	33,830	$	45,156	$	15,874	$	281,687
Charge-offs	( 2,477 )		—		( 704 )		( 1,833 )		( 5,014 )
Recoveries	891		—		2,869		70		3,830
Net (charge-offs) recoveries	( 1,586 )		—		2,165		( 1,763 )		( 1,184 )
Provision	13,033		( 3,819 )		( 267 )		2,053		11,000
Balance, end of period	$	198,274	$	30,011	$	47,054	$	16,164	$	291,503

Ending Allowance by
Evaluation Methodology:
Individually evaluated	$	8,336	$	—	$	7	$	—	$	8,343
Collectively evaluated	$	189,938	$	30,011	$	47,047	$	16,164	$	283,160

Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated	$	129,116	$	—	$	14,919	$	4	$	144,039
Collectively evaluated	15,838,283		3,245,354		5,805,648		439,698		25,328,983
Ending balance	$	15,967,399	$	3,245,354	$	5,820,567	$	439,702	$	25,473,022

The allowance for loan and lease losses decreased by $ 4.4 million in the first quarter of 2025 to $ 235.0 million due primarily to a $ 9.7 million provision, offset by net charge-offs of $ 14.1 million. For additional information regarding the calculation of the ALLL using the CECL methodology, including discussion of forecasts used to estimate the allowance, please see Note 1(j). Nature of Operations and Summary of Significant Accounting Policies - Allowance for Credit Losses on Loans and Leases Held for Investment of the Notes to Consolidated Financial Statements contained in "Item 8. Financial Statements and Supplementary Data" of the Form 10-K.

A loan is considered collateral-dependent, and is individually evaluated for reserve purposes, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table summarizes collateral-dependent loans held for investment by collateral type as of the following dates:


	March 31, 2025				December 31, 2024
	Real		Business				Real		Business
	Property		Assets		Total		Property		Assets		Total
	(In thousands)
Real estate mortgage	$	198,839	$	—	$	198,839	$	167,060	$	—	$	167,060

Commercial	—		7,169		7,169		—		10,870		10,870

Total	$	198,839	$	7,169	$	206,008	$	167,060	$	10,870	$	177,930

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Allowance for Credit Losses

The ACL is the combination of the ALLL and the reserve for unfunded loan commitments. The reserve for unfunded loan commitments is included within "Accrued interest payable and other liabilities" on the condensed consolidated balance sheets.

The following tables present a summary of the activity in the ALLL and reserve for unfunded loan commitments for the periods indicated:
















	Three Months Ended
	March 31, 2025
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	239,360	$	29,071	$	268,431
Charge-offs	( 16,551 )		—		( 16,551 )
Recoveries	2,477		—		2,477
Net charge-offs	( 14,074 )		—		( 14,074 )
Provision	9,700		500		10,200
Balance, end of period	$	234,986	$	29,571	$	264,557
















	Three Months Ended
	March 31, 2024
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	281,687	$	29,571	$	311,258
Charge-offs	( 5,014 )		—		( 5,014 )
Recoveries	3,830		—		3,830
Net charge-offs	( 1,184 )		—		( 1,184 )
Provision	11,000		( 1,000 )		10,000
Balance, end of period	$	291,503	$	28,571	$	320,074

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 5. GOODWILL AND OTHER INTANGIBLE ASSETS, NET

Goodwill and other intangible assets arise from the acquisition method of accounting for business combinations. Goodwill and other intangible assets generated from business combinations and deemed to have indefinite lives are not subject to amortization and instead are tested for impairment annually at the reporting unit level unless a triggering event occurs thereby requiring an updated assessment. Our regular annual impairment assessment occurs in the fourth quarter.

Goodwill represents the excess of the purchase price over the fair value of the net assets and other identifiable intangible assets acquired. Impairment exists when the carrying value of the goodwill exceeds the fair value of the reporting unit. An impairment loss would be recognized in an amount equal to that excess as a charge to "Noninterest expense" in the condensed consolidated statements of earnings.

The following table presents the carrying amount of goodwill for the years indicated:


	Goodwill
	(In thousands)


Balance, December 31, 2024	$	214,521

Balance, March 31, 2025	$	214,521

Our other intangible assets with definite lives are CDI and CRI. CDI and CRI are amortized on an accelerated basis over their respective estimated useful lives and reviewed for impairment at least quarterly. The amortization expense represents the estimated decline in the value of the underlying deposits or customer relationships acquired.

The following table presents the carrying amounts of CDI and CRI and the related accumulated amortization for the periods indicated:


	Three Months Ended
	March 31,
	2025		2024
	(In thousands)

Gross carrying amount of CDI and CRI, beginning of period	$	178,764	$	236,264


Accumulated Amortization:
Balance, beginning of period	( 45,820 )		( 70,787 )
Amortization expense	( 7,007 )		( 8,251 )

Balance, end of period	( 52,827 )		( 79,038 )
Net CDI and CRI, end of period	$	125,937	$	157,226

The following table presents the estimated aggregate future amortization expense for our current CDI and CRI as of the date indicated:


	March 31, 2025
	(In thousands)
Period ending December 31,
2025	$	20,650
2026	24,412
2027	21,166
2028	17,920
2029	14,675
Thereafter	27,114
Net CDI and CRI	$	125,937

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 6. OTHER ASSETS

The following table presents the detail of our other assets as of the dates indicated:


	March 31,		December 31,
Other Assets	2025		2024
	(In thousands)
Investments:
LIHTC investments	$	284,968	$	295,964
SBIC investments	113,890		109,636
Alternative energy partnerships (HLBV investments)	17,100		17,472
Other equity and CRA investments	142,504		143,152
Total investments	558,462		566,224
Interest receivable	127,394		125,469
Operating lease ROU assets, net (1)	97,716		100,092
Prepaid expenses	39,783		39,432
Taxes receivable	16,858		18,009
Foreclosed assets, net	5,474		9,734
Equity warrants	3,497		3,763
Other receivables/assets	47,237		51,231
Total other assets	$	896,421	$	913,954

____________________

(1) See Note 7. Leases for further details regarding the operating lease ROU assets.

NOTE 7. LEASES

Operating Leases as a Lessee

Our lease expense is a component of "Occupancy expense" on our condensed consolidated statements of earnings. The following table presents the components of lease expense for the periods indicated:


	Three Months Ended
	March 31,
	2025		2024
	(In thousands)
Operating lease expense:
Fixed costs	$	6,969	$	9,435
Variable costs	112		48
Short-term lease costs	235		66
Sublease income	( 1,132 )		( 1,196 )
Net lease expense	$	6,184	$	8,353

The following table presents supplemental cash flow information related to leases for the periods indicated:


	Three Months Ended
	March 31,
	2025		2024
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,323	$	7,746
ROU assets obtained in exchange for lease obligations:
Operating leases	$	3,942	$	1,183

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table presents supplemental balance sheet and other information related to operating leases as of the dates indicated:


	March 31,			December 31,
	2025			2024
	(Dollars in thousands)
Operating leases:
Operating lease right-of-use assets, net	$	97,716		$	100,092
Operating lease liabilities	$	120,090		$	124,355

Weighted average remaining lease term (in years)	5.9			5.9
Weighted average discount rate	3.59		%	3.53		%

The following table presents the maturities of operating lease liabilities as of the date indicated:


	March 31, 2025
	(In thousands)
Period ending December 31,
2025	$	23,450
2026	28,000
2027	21,490
2028	17,454
2029	13,207
Thereafter	30,403
Total operating lease liabilities	134,004
Less: Imputed interest	( 13,914 )
Present value of operating lease liabilities	$	120,090

Operating Leases as a Lessor

We provide equipment financing to our customers through operating leases where we facilitate the purchase of equipment leased to our customers. The equipment is shown on the condensed consolidated balance sheets as "Equipment leased to others under operating leases" and is depreciated to its estimated residual value at the end of the lease term, shown as "Leased equipment depreciation" in the condensed consolidated statements of earnings, according to our fixed asset accounting policy. We receive periodic rental income payments under the leases, which are recorded as "Noninterest income" in the condensed consolidated statements of earnings. The equipment is tested periodically for impairment. No impairment was recorded on "Equipment leased to others under operating leases" during the three months ended March 31, 2025 and 2024.

The following table presents the rental payments to be received on operating leases as of the date indicated:


	March 31, 2025
	(In thousands)
Period ending December 31,
2025	$	27,224
2026	34,348
2027	27,971
2028	24,925
2029	23,418
Thereafter	45,229
Total undiscounted cash flows	$	183,115

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 8. BORROWINGS AND SUBORDINATED DEBT

Borrowings

The following table summarizes our borrowings as of the dates indicated:


	March 31, 2025				December 31, 2024
			Weighted				Weighted
			Average				Average
	Balance		Rate		Balance		Rate
	(Dollars in thousands)
FHLB secured advances	$	1,379,842	4.07	%	$	1,100,000	3.93	%


Senior Notes	174,000		5.25	%	174,000		5.25	%
Credit-linked notes	117,196		15.07	%	118,838		15.29	%




Total borrowings	1,671,038		4.96	%	1,392,838		5.06	%
Acquisition discount on senior notes	( 256 )				( 1,024 )
Total borrowings, net (1)	$	1,670,782			$	1,391,814

___________________

(1) All borrowings were held at the Bank level with the exception of the 5.25 % Senior Notes due April 2025 ("Senior Notes"), which were issued at the holding company level.

The Bank has established secured and unsecured lines of credit under which it may borrow funds from time to time on a term or overnight basis from the FHLB, the FRBSF, and other financial institutions.

FHLB Secured Line of Credit. The Bank had secured financing capacity with the FHLB as of March 31, 2025 of $ 6.9 billion, collateralized by a blanket lien on $ 10.5 billion of qualifying loans and $ 19.5 million of securities. As of March 31, 2025, there were $ 513.9 million in letters of credit pledged and $ 1.4 billion outstanding. As of December 31, 2024, there were $ 527.9 million in letters of credit pledged and $ 1.1 billion balance outstanding.

The following table presents the interest rates and maturity dates of FHLB secured advances as of the date indicated:


	March 31, 2025
					Maturity
	Balance		Rate		Date
	(Dollars in thousands)
Overnight advance	$	100,000	4.65	%	04/01/2025
Term advance	179,842		4.57	%	05/01/2025
Term advance	150,000		4.59	%	06/26/2026
Term advance	150,000		4.63	%	05/28/2027
Term advance	150,000		4.63	%	06/03/2027
Term advance	150,000		4.39	%	06/03/2027
Callable term advance	500,000		3.18	%	09/18/2034
Total FHLB secured advances	$	1,379,842	4.07	%

FRBSF Secured Line of Credit. The Bank has a secured line of credit with the FRBSF. As of March 31, 2025, the Bank had secured borrowing capacity of $ 5.8 billion collateralized by liens covering $ 5.3 billion of qualifying loans and $ 1.5 billion of securities. As of March 31, 2025 and December 31, 2024, there was no balance outstanding.

Senior Notes. The Senior Notes are unsecured debt obligations and rank equally with our other present and future unsecured unsubordinated obligations. We make interest payments on the Senior Notes semi-annually in arrears. We have the option to redeem the Senior Notes either in whole or in part on or after January 15, 2025 (i.e., 90 days prior to the maturity date of April 15, 2025). Notification of no less than 30 nor more than 60 days is required for redemption. The Senior Notes will be redeemable at a price equal to 100% of the principal amount of the Senior Notes to be redeemed plus accrued and unpaid interest to the date of redemption. On April 4, 2025, the Company repaid the Senior Notes in full that were scheduled to mature on April 15, 2025.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Holding Company Line of Credit Arrangement. On December 23, 2024, Banc of California, Inc. entered into an unsecured revolving line of credit agreement as a borrower for $ 50.0 million. On March 17, 2025, the Company executed an amendment to the credit agreement which increased the Company's unsecured revolving line of credit to $ 100.0 million. The rate is based on 1-month SOFR plus a spread of 2.25 % basis points. As of March 31, 2025 and December 31, 2024, there was no balance outstanding.

Credit-Linked Notes. On September 29, 2022, legacy Pacific Western Bank completed a credit-linked notes transaction. The notes were issued in five classes, each with an interest rate of SOFR plus a spread that ranges from 8.00 % to 13.25 %, with a weighted average spread of 10.74 % at March 31, 2025. The notes are linked to the credit risk of an approximately $ 2.3 billion reference pool of previously purchased single-family residential mortgage loans at March 31, 2025. The notes are due June 27, 2052. Principal payments on the notes are based only on principal that is actually collected on these loans. The notes are reported at fair value of $ 117.2 million at March 31, 2025. See Note 2. Restricted Cash for information regarding the collateral for the notes and Note 11. Fair Value Option for additional information.

Federal Funds Arrangements with Commercial Banks. As of March 31, 2025, the Bank had unsecured lines of credit of $ 265.0 million in the aggregate with several commercial banks for the purchase of overnight funds, subject to availability of funds. These lines are renewable annually and have no unused commitment fees. As of March 31, 2025 and December 31, 2024, there were no balances outstanding. The Bank is a member of the AFX, through which it may either borrow or lend funds on an overnight or short-term basis with a group of pre-approved commercial banks. The availability of funds changes daily. As of March 31, 2025 and December 31, 2024 there was no balance outstanding.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Subordinated Debt

The following table summarizes the terms of each issuance of subordinated debt outstanding as of the dates indicated:


	March 31, 2025				December 31, 2024				Date	Maturity	Rate Index
Series	Balance		Rate (1)		Balance		Rate (1)		Issued	Date	(Quarterly Reset)
	(Dollars in thousands)
Subordinated notes, net (2)(7)	$	381,321	3.25	%	$	381,185	3.25	%	04/30/2021	05/01/2031	Fixed rate (3)
Subordinated notes	75,000		4.375	%	75,000		4.375	%	10/30/2020	10/30/2030	Fixed rate (6)
Trust V	10,310		7.66	%	10,310		7.71	%	08/15/2003	09/17/2033	3-month Term SOFR + 3.10
Trust VI	10,310		7.61	%	10,310		7.67	%	09/03/2003	09/15/2033	3-month Term SOFR + 3.05
Trust CII	5,155		7.51	%	5,155		7.56	%	09/17/2003	09/17/2033	3-month Term SOFR + 2.95
Trust VII	61,856		7.30	%	61,856		7.60	%	02/05/2004	04/23/2034	3-month Term SOFR + 2.75
Trust CIII	20,619		6.25	%	20,619		6.31	%	08/15/2005	09/15/2035	3-month Term SOFR + 1.69
Trust FCCI	16,495		6.16	%	16,495		6.22	%	01/25/2007	03/15/2037	3-month Term SOFR + 1.60
Trust FCBI	10,310		6.11	%	10,310		6.17	%	09/30/2005	12/15/2035	3-month Term SOFR + 1.55
Trust CS 2005-1	82,475		6.51	%	82,475		6.57	%	11/21/2005	12/15/2035	3-month Term SOFR + 1.95
Trust CS 2005-2	128,866		6.50	%	128,866		6.80	%	12/14/2005	01/30/2036	3-month Term SOFR + 1.95
Trust CS 2006-1	51,545		9.45	%	51,545		9.95	%	02/22/2006	04/30/2036	Prime + 1.95
Trust CS 2006-2	51,550		6.50	%	51,550		6.80	%	09/27/2006	10/30/2036	3-month Term SOFR + 1.95
Trust CS 2006-3 (4)	27,878		4.67	%	26,687		5.10	%	09/29/2006	10/30/2036	3-month EURIBOR + 2.05
Trust CS 2006-4	16,470		9.45	%	16,470		9.95	%	12/05/2006	01/30/2037	Prime + 1.95
Trust CS 2006-5	6,650		6.50	%	6,650		6.80	%	12/19/2006	01/30/2037	3-month Term SOFR + 1.95
Trust CS 2007-2	39,177		6.50	%	39,177		6.80	%	06/13/2007	07/30/2037	3-month Term SOFR + 1.95
PMB Statutory Trust III	7,217		7.96	%	7,217		7.99	%	09/16/2002	09/26/2032	3-month Term SOFR + 3.40
PMB Capital Trust III	10,310		6.55	%	10,310		6.89	%	10/04/2004	10/08/2034	3-month Term SOFR + 2.00
Total subordinated debt	1,013,514		5.33	%	1,012,187		5.48	%
Acquisition discount (5)	( 68,606 )				( 70,264 )
Total subordinated debt, net	$	944,908			$	941,923

___________________

(1) Rates do not include the effects of discounts and issuance costs.

(2) Net of unamortized issuance costs of $ 3.7 million.

(3) Interest rate is fixed until May 1, 2026, when it changes to a floating rate and resets quarterly equal to 3-month Term SOFR, plus a spread of 252 basis points.

(4) Denomination is in Euros with a value of € 25.8 million.

(5) Amount represents the fair value adjustment on subordinated debt assumed in acquisitions.

(6) Interest rate is fixed until October 30, 2025, when it changes to a floating rate equal to 3-month Term SOFR, plus a spread of 419.5 basis points.

(7) Subordinated notes, net, issued at the Bank level rather than the holding company level.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 9. DERIVATIVES

We use derivative instruments and other risk management techniques to reduce our exposure to adverse fluctuations in interest rates and foreign currency exchange rates in accordance with our risk management policies and for certain loan clients to allow them to hedge the risk of rising interest rates and on their variable rate loans.

Our derivatives are carried at fair value and recorded in "Other assets" or "Accrued interest payable and other liabilities," as appropriate, in the condensed consolidated balance sheets. On the date we enter into a derivative contract, the derivative is designated as a fair value hedge, cash flow hedge, or a hedge designation is not made as it is a customer-related transaction. When a derivative is designated as a fair value hedge or cash flow hedge, the Company performs an assessment at inception, and at least quarterly thereafter, to determine the effectiveness of the derivative in offsetting changes in the fair value or cash flows of the hedged items.

The following table presents the U.S. dollar notional amounts and fair values of our derivative instruments included in the condensed consolidated balance sheets as of the dates indicated:


	March 31, 2025						December 31, 2024
	Notional		Fair Value				Notional		Fair Value
	Amount		Asset		Liability		Amount		Asset		Liability
	(In thousands)
Derivatives Designated as Hedging Instruments:
Cash flow hedges	$	300,000	$	—	$	2,081	$	300,000	$	1,442	$	—
Derivatives Not Designated as Hedging Instruments:
Interest rate contracts	192,405		5,380		5,308		192,405		6,516		6,428
Foreign exchange contracts	85,726		497		172		36,155		515		1,134
Equity warrant assets	15,447		3,497		—		16,066		3,763		—
Total contracts	$	593,578	$	9,374	$	7,561	$	544,626	$	12,236	$	7,562

Cash Flow Hedge

Cash flow hedges included pay-fixed, receive-floating interest rate swap contracts with notional amounts aggregating $ 300.0 million, five-year terms, and varying maturity dates throughout 2028. These swap contracts were entered into with institutional counterparties to hedge against variability in cash flow attributable to interest rate risk on a portion of the Company's borrowings. The cash flow hedges were deemed highly effective at inception and thereafter. For derivatives designated as cash flow hedges, the portion of changes in fair value considered to be highly effective are reported as a component of AOCI on the condensed consolidated balance sheets until the related cash flows from the hedged items are recognized in earnings. As of March 31, 2025, the fair value of the cash flow hedges represented a net liability of $ 2.1 million, related to which a loss of $ 2.3 million (net of tax) was included in AOCI. The estimated amount to be reclassified in the next 12 months out of AOCI into earnings is $ 0.1 million.

Terminated Cash Flow Hedge

The Company terminated all of the pay-fixed, receive floating interest rate swap contracts classified as cash flow hedges with notional amounts of $ 355.0 million entered into during 2024. At March 31, 2025, we had a pre-tax net loss of $ 0.5 million deferred in AOCI related to terminated cash flow hedges. Amounts deferred in AOCI from terminated cash flow hedges will be amortized into interest expense through the original maturity dates of the hedges as long as the hedged forecasted transactions continue to be expected to occur.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following schedule summarizes amounts deferred in AOCI related to terminated cash flow hedges that will be fully classified into interest expense by the fourth quarter of 2025:


	2025
	(In thousands)
Period AOCI Amortization for Terminated Cash Flow Hedges:

Second quarter	$	320
Third quarter	191
Fourth quarter	1
Total	$	512

Other Interest Rate Swaps, Foreign Exchange Contracts, and Equity Warrant Assets Not Designated for Hedge Accounting

The Company offers borrowers interest rate swaps under a "back-to-back" loan hedging program and offsets these "pay floating/receive fixed" contracts with borrowers with "receive floating/pay fixed" swaps with counterparty banks. The total notional balance of these offsetting hedging contracts was $ 192.4 million at March 31, 2025.

The Company has also hedged the interest rate risk and foreign currency risk on € 25.8 million of subordinated debt utilizing a combined cross currency swap/interest rate swap, which has had the effect of hedging the foreign currency risk and fixing the Euribor-based floating rate instrument at a fixed rate of 2.76 % through July 2025. For the quarter ended March 31, 2025, changes in fair value and fees recorded to "Noninterest income" in the condensed consolidated statements of earnings were immaterial.

See Note 12. Fair Value Measurements for additional information regarding equity warrant assets.

NOTE 10. COMMITMENTS AND CONTINGENCIES

The following table presents a summary of commitments described below as of the dates indicated:


	March 31,		December 31,
	2025		2024
	(In thousands)
Loan commitments to extend credit	$	4,858,960	$	4,887,690
Standby letters of credit	209,495		201,768
Total	$	5,068,455	$	5,089,458

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the condensed consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of involvement that the Company has in particular classes of financial instruments.

Commitments to extend credit are contractual agreements to lend to our customers when customers are in compliance with their contractual credit agreements and when customers have contractual availability to borrow under such agreements. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The estimated exposure to loss from these commitments is included in the reserve for unfunded loan commitments, which amounted to $ 29.6 million at March 31, 2025 and $ 29.1 million at December 31, 2024.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. We provide standby letters of credit in conjunction with several of our lending arrangements and property lease obligations. Most guarantees expire within one year from the date of issuance. If a borrower defaults on its commitments subject to any letter of credit issued under these arrangements, we would be required to meet the borrower's financial obligation but would seek repayment of that financial obligation from the borrower. In some cases, borrowers have pledged cash and investment securities as collateral under these arrangements.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

In addition, we invest in SBICs that call for capital contributions up to an amount specified in the partnership agreements, and in CRA-related loan pools. As of March 31, 2025 and December 31, 2024, we had commitments to contribute capital to these entities totaling $ 84.7 million and $ 79.7 million.

The following table presents the years in which commitments are expected to be paid for our commitments to contribute capital to SBICs and CRA-related loan pools as of the date indicated:


	March 31, 2025
	(In thousands)
Period ending December 31,
2025	$	42,365
2026	42,365




Total	$	84,730

Legal Matters

In the ordinary course of our business, the Company is party to various legal actions, which we believe are incidental to the operation of our business. The outcome of such legal actions and the timing of ultimate resolution are inherently difficult to predict. In the opinion of management, based upon currently available information, any resulting liability, in addition to amounts already accrued, and taking into consideration insurance which may be applicable, would not have a material adverse effect on the Company’s financial statements or operations. The range of any reasonably possible liabilities is also not significant.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 11. FAIR VALUE OPTION

The Company may elect to report financial instruments and certain other items at fair value on an instrument-by-instrument basis with changes in fair value reported in earnings. The election is made upon the initial recognition of an eligible financial asset, financial liability, or firm commitment or when certain specified reconsideration events occur. The fair value election may not otherwise be revoked once an election is made. The changes in fair value are recorded in "Noninterest income" on the condensed consolidated statements of earnings. However, movements in debt valuation adjustments are reported as a component of "Accumulated other comprehensive loss, net" on the condensed consolidated balance sheets. Debt valuation adjustments represent the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk.

Fair Value Option for Certain Debt Liabilities

The Company has elected the fair value option for the credit-linked notes issued in September 2022. The Company elected the fair value option because these exposures are considered to be structured notes, which are financial instruments that contain embedded derivatives. The notes are linked to the credit risk of an approximately $ 2.3 billion reference pool of previously purchased single-family residential mortgage loans. The principal balance of the credit-linked notes was $ 118.1 million at March 31, 2025. The carrying value of the credit-linked notes at March 31, 2025 was the estimated fair value of $ 117.2 million. For the three months ended March 31, 2025 and 2024, interest expense on the credit-linked notes totaled $ 4.5 million and $ 5.0 million, respectively, and was recorded in "Interest expense - borrowings" on the condensed consolidated statements of earnings.

The following table presents the changes in fair value of the credit-linked notes for which the fair value option has been elected for the periods indicated:


	Three Months Ended
	March 31,
Credit-Linked Notes	2025		2024
	(In thousands)
Changes in fair value - gains (losses) included in earnings	$	482	$	( 348 )
Changes in fair value - other comprehensive income (loss)	$	146	$	( 1,251 )

The following table provides information about the credit-linked notes carried at fair value as of the dates indicated:


	March 31,		December 31,
Credit-Linked Notes	2025		2024
	(In thousands)

Carrying value reported on the condensed consolidated balance sheets	$	117,196	$	118,838
Aggregate unpaid principal balance in excess of fair value	$	929	$	301

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 12. FAIR VALUE MEASUREMENTS

The Company uses fair value to measure certain assets and liabilities on a recurring basis, primarily AFS securities, derivatives, and certain debt liabilities. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period and such measurements are therefore considered “nonrecurring” for purposes of disclosing our fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for individually evaluated loans and leases and other real estate owned and also to record impairment on certain assets, such as goodwill, CDI, and other long-lived assets.

For information regarding the valuation methodologies used to measure our assets recorded at fair value (under ASC Topic 820), and for estimating fair value for financial instruments not recorded at fair value (under ASC Topic 825, as amended by ASU 2016-01 and ASU 2018-03), see Note 1. Nature of Operations and Summary of Significant Accounting Policies and Note 15. Fair Value Measurements to the Consolidated Financial Statements of the Company's Form 10-K.

The Company also holds SBIC investments measured at fair value using the NAV per share practical expedient that are not required to be classified in the fair value hierarchy. At March 31, 2025, the fair value of these investments was $ 113.9 million.

The following tables present information on the assets and liabilities measured and recorded at fair value on a recurring basis as of the dates indicated:


	Fair Value Measurements as of
	March 31, 2025
Measured on a Recurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Securities available-for-sale:
Agency residential MBS	$	867,042	$	—	$	867,042	$	—

Agency commercial MBS	61,204		—		61,204		—
Agency residential CMOs	565,068		—		565,068		—
Municipal securities	597		—		597		—
Corporate debt securities	263,403		—		261,243		2,160
Private label residential CMOs	303,327		—		303,327		—
Collateralized loan obligations	242,885		—		242,885		—
Private label commercial MBS	11,446		—		11,446		—
Asset-backed securities	15,224		—		15,224		—
SBA securities	3,862		—		3,862		—
Total securities available-for-sale	$	2,334,058	$	—	$	2,331,898	$	2,160
Equity investments with readily determinable fair values	$	2	$	2	$	—	$	—
Derivatives (1) :
Derivative assets

Interest rate and foreign exchange contracts	5,877		—		5,877		—
Equity warrants	3,497		—		—		3,497
Derivative liabilities
Cash flow hedges	2,081		—		2,081		—
Interest rate and foreign exchange contracts	5,480		—		5,480		—
Credit-linked notes	117,196		—		—		117,196

____________________

(1) For information regarding derivative instruments, see Note 9. Derivatives .

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)


	Fair Value Measurements as of
	December 31, 2024
Measured on a Recurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Securities available-for-sale:
Agency residential MBS	$	861,840	$	—	$	861,840	$	—

Agency commercial MBS	51,564		—		51,564		—
Agency residential CMOs	446,631		—		446,631		—
Municipal securities	594		—		594		—
Corporate debt securities	257,712		—		255,582		2,130
Private label residential CMOs	316,910		—		316,910		—
Collateralized loan obligations	279,416		—		279,416		—
Private label commercial MBS	12,372		—		12,372		—
Asset-backed securities	15,600		—		15,600		—
SBA securities	4,200		—		4,200		—
Total securities available-for-sale	$	2,246,839	$	—	$	2,244,709	$	2,130
Equity investments with readily determinable fair values	$	3	$	3	$	—	$	—
Derivatives (1) :
Derivative assets
Cash flow hedges	1,442		—		1,442		—
Interest rate and foreign exchange contracts	7,031		—		7,031		—
Equity warrants	3,763		—		—		3,763
Derivative liabilities
Interest rate and foreign exchange contracts	7,562		—		7,562		—
Credit-linked notes	118,838		—		—		118,838

____________________

(1) For information regarding derivative instruments, see Note 9. Derivatives .

During the three months ended March 31, 2025, there was no transfer from Level 3 equity warrants to Level 1 equity investments with readily determinable fair values measured on a recurring basis. There was also no transfer of corporate debt securities from Level 3 to Level 2 during the three months ended March 31, 2025 and no transfer of corporate debt securities from Level 2 to Level 3 during the same period.

The following table presents information about quantitative inputs and assumptions used to determine the fair values provided by our third-party pricing service for our Level 3 corporate debt securities available-for-sale measured at fair value on a recurring basis as of the date indicated:


	March 31, 2025
	Corporate Debt Securities
	Input or	Weighted
	Range	Average
Unobservable Inputs	of Inputs	Input (1)
Spread to 10 Year Treasury	7.1 % - 10.4 %	8.7 %
Discount rates	11.3 % - 14.6 %	12.9 %

____________________

(1) Unobservable inputs for corporate debt securities were weighted by the relative fair values of the instruments.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table presents information about quantitative inputs and assumptions used in the modified Black-Scholes option pricing model to determine the fair value for our Level 3 equity warrants measured at fair value on a recurring basis as of the date indicated:


	March 31, 2025
	Equity Warrants
		Weighted
	Range	Average
Unobservable Inputs	of Inputs	Input (1)
Volatility	22.8 % - 165.2 %	24.4 %
Risk-free interest rate	3.9 % - 4.4 %	3.9 %
Remaining life assumption (in years)	0.08 - 4.97	3.23

____________________

(1) Unobservable inputs for equity warrants were weighted by the relative fair values of the instruments.

The following table summarizes activity for our Level 3 corporate debt securities available-for-sale, equity warrants, and credit-linked notes measured at fair value on a recurring basis for the period indicated:


	Corporate		Equity		Credit-Linked
	Debt Securities		Warrants		Notes
	(In thousands)
Balance, December 31, 2024	$	2,130	$	3,763	$	118,838
Total included in earnings	—		( 295 )		( 482 )
Total included in other comprehensive income	30		—		( 146 )

Issuances	—		48		—
Principal payments	—		—		( 1,014 )




Exercises and settlements	—		( 19 )		—


Balance, March 31, 2025	$	2,160	$	3,497	$	117,196

Unrealized net gains (losses) for the period included in other
comprehensive income for securities held at quarter-end	$	( 840 )

The following tables present assets measured at fair value on a non-recurring basis as of the dates indicated:


	Fair Value Measurement as of
	March 31, 2025
Measured on a Non-Recurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Individually evaluated loans and leases	$	32,944	$	—	$	26,271	$	6,673

OREO	1,198		—		1,198		—
Total non-recurring	$	34,142	$	—	$	27,469	$	6,673


	Fair Value Measurement as of
	December 31, 2024
Measured on a Non-Recurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Individually evaluated loans and leases	$	58,948	$	—	$	45,962	$	12,986
OREO	3,372		—		3,372		—
Total non-recurring	$	62,320	$	—	$	49,334	$	12,986

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table presents losses recognized on assets measured on a nonrecurring basis for the periods indicated:


	Three Months Ended
Losses on Assets	March 31,
Measured on a Non-Recurring Basis	2025		2024
	(In thousands)
Individually evaluated loans and leases	$	11,285	$	832

OREO	266		297
Total losses	$	11,551	$	1,129

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis as of the date indicated:

March 31, 2025

Valuation

Unobservable

Input or

Weighted

Asset

Fair Value

Technique

Inputs

Range

Average

(In thousands)

Individually evaluated

loans and leases

1,509

Discounted cash flows

Discount rates

4.25 % - 7.54 %

5.68 %

Individually evaluated

loans and leases

5,164

Third-party appraisals

No discounts

Total non-recurring Level 3

6,673

The following tables present carrying amounts and estimated fair values of certain financial instruments as of the dates indicated:


	March 31, 2025
	Carrying		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	( In thousands )
Financial Assets:
Cash and due from banks	$	215,591	$	215,591	$	215,591	$	—	$	—
Interest-earning deposits in financial institutions	2,128,298		2,128,298		2,128,298		—		—
Securities available-for-sale	2,334,058		2,334,058		—		2,331,898		2,160
Securities held-to-maturity	2,311,912		2,179,910		178,435		1,997,862		3,613
Investment in FRB and FHLB stock	155,330		155,330		—		155,330		—
Loans held for sale	25,797		26,015		—		26,015		—
Loans and leases held for investment, net	23,891,541		22,732,328		—		26,271		22,706,057
Equity investments with readily determinable fair values	2		2		2		—		—
Equity warrants	3,497		3,497		—		—		3,497
Interest rate and foreign exchange contracts	5,877		5,877		—		5,877		—
Servicing rights	19,062		20,336		—		—		20,336

Financial Liabilities:
Demand, checking, money market, and savings deposits	22,707,851		22,707,851		—		22,707,851		—
Time deposits	4,485,340		4,477,629		—		4,477,629		—
Borrowings	1,670,782		1,670,940		100,000		1,453,744		117,196
Subordinated debt	944,908		915,685		—		915,685		—
Cash flow hedges	2,081		2,081		—		2,081		—
Interest rate and foreign exchange contracts	5,480		5,480		—		5,480		—

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)


	December 31, 2024
	Carrying		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	( In thousands )
Financial Assets:
Cash and due from banks	$	192,006	$	192,006	$	192,006	$	—	$	—
Interest-earning deposits in financial institutions	2,310,206		2,310,206		2,310,206		—		—
Securities available-for-sale	2,246,839		2,246,839		—		2,244,709		2,130
Securities held-to-maturity	2,306,149		2,156,694		173,283		1,976,265		7,146
Investment in FRB and FHLB stock	147,773		147,773		—		147,773		—
Loans held for sale	26,331		26,562		—		26,562		—
Loans and leases held for investment, net	23,542,303		22,412,073		—		45,962		22,366,111
Equity investments with readily determinable fair values	3		3		3		—		—
Equity warrants	3,763		3,763		—		—		3,763
Cash flow hedges	1,442		1,442		—		1,442		—
Interest rate and foreign exchange contracts	7,031		7,031		—		7,031		—
Servicing rights	19,623		21,040		—		—		21,040

Financial Liabilities:
Demand, checking, money market, and savings deposits	22,625,485		22,625,485		—		22,625,485		—
Time deposits	4,566,424		4,556,575		—		4,556,575		—
Borrowings	1,391,814		1,382,742		—		1,263,904		118,838
Subordinated debt	941,923		901,532		—		901,532		—
Interest rate and foreign exchange contracts	7,562		7,562		—		7,562		—

Limitations

Fair value estimates are made at a specific point in time and are based on relevant market information and information about the financial instrument. These estimates do not reflect income taxes or any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a portion of the Company’s financial instruments, fair value estimates are based on what management believes to be reasonable judgments regarding expected future cash flows, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimated fair values are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Since the fair values have been estimated as of March 31, 2025, the amounts that will actually be realized or paid at settlement or maturity of the instruments could be significantly different.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 13. EARNINGS PER SHARE

The following tables present the computations of basic and diluted net earnings per share by class of common stock for the periods indicated:


	Three Months Ended March 31, 2025
					Non-Voting
			Class B		Common
	Voting		Non-Voting		Stock		Total
	Common		Common		Equivalents		Common
	(In thousands, except per share amounts)
Basic Earnings Per Share:
Net earnings available to common and equivalent stockholders	$	40,963	$	123	$	2,535	$	43,621

Less: Earnings allocated to unvested restricted stock (1)	( 47 )		—		—		( 47 )
Net earnings allocated to common and equivalent shares	$	40,916	$	123	$	2,535	$	43,574

Weighted average basic shares and unvested restricted
stock outstanding	158,429		477		9,791		168,697
Less: weighted average unvested restricted stock
outstanding	( 202 )		—		—		( 202 )
Weighted average basic shares outstanding	158,227		477		9,791		168,495

Basic earnings per share	$	0.26	$	0.26	$	0.26	$	0.26

Diluted Earnings Per Share:
Net earnings allocated to common and equivalent shares	$	40,963	$	123	$	2,535	$	43,621
Weighted average diluted shares outstanding	158,734		477		10,223		169,434
Diluted earnings per share	$	0.26	$	0.26	$	0.25	$	0.26

________________________

(1) Represents cash dividends paid to holders of unvested restricted stock, net of forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)


	Three Months Ended March 31, 2024
					Non-Voting
			Class B		Common
	Voting		Non-Voting		Stock		Total
	Common		Common		Equivalents		Common
	(In thousands, except per share amounts)
Basic Earnings Per Share:
Net earnings available to common and equivalent stockholders	$	19,521	$	59	$	1,325	$	20,905
Less: Earnings allocated to unvested restricted stock (1)	( 53 )		—		—		( 53 )
Net loss allocated to common and equivalent shares	$	19,468	$	59	$	1,325	$	20,852

Weighted average basic shares and unvested restricted
stock outstanding	157,838		477		10,658		168,973
Less: weighted average unvested restricted stock
outstanding	( 830 )		—		—		( 830 )
Weighted average basic shares outstanding	157,008		477		10,658		168,143

Basic earnings per share	$	0.12	$	0.12	$	0.12	$	0.12

Diluted Earnings Per Share:
Net earnings allocated to common and equivalent shares	$	19,468	$	59	$	1,325	$	20,852
Weighted average diluted shares outstanding	157,008		477		10,658		168,143
Diluted earnings per share	$	0.12	$	0.12	$	0.12	$	0.12

________________________

(1) Represents cash dividends paid to holders of unvested restricted stock, net of forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any.

The following table presents the weighted average outstanding restricted shares and warrants that were not included in the computation of diluted earnings per share because their effect would be anti-dilutive for the periods indicated:


	Three Months Ended
	March 31,
	2025	2024
	(In thousands)
Restricted stock awards and units (1)	202	830
Warrants	18,902	18,902

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 14. REVENUE FROM CONTRACTS WITH CUSTOMERS

Disaggregation of Revenue

The following table presents interest income and noninterest income, the components of total revenue, as disclosed in the condensed consolidated statements of earnings and the related amounts which are from contracts with customers within the scope of ASC Topic 606, " Revenue from Contracts with Customers," for the periods indicated. As illustrated here, substantially all of our revenue is specifically excluded from the scope of ASC Topic 606.


	Three Months Ended March 31,
	2025				2024
	Total		Revenue from		Total		Revenue from
	Recorded		Contracts with		Recorded		Contracts with
	Revenue		Customers		Revenue		Customers
	(In thousands)
Total Interest Income	$	406,655	$	—	$	478,704	$	—
Noninterest Income:
Service charges on deposit accounts	4,543		4,543		4,705		4,705
Other commissions and fees	9,958		5,403		8,142		4,983
Leased equipment income	10,784		—		11,716		—
Gain (loss) on sale of loans	211		—		( 448 )		—

Dividends and gains on equity investments	2,323		—		3,068		—
Warrant (loss) income	( 295 )		—		178		—
LOCOM HFS adjustment	—		—		330		—
Other income	6,126		246		6,125		93
Total noninterest income (loss)	33,650		10,192		33,816		9,781
Total Revenue	$	440,305	$	10,192	$	512,520	$	9,781

The following table presents revenue from contracts with customers based on the timing of revenue recognition for the periods indicated:


	Three Months Ended
	March 31,
	2025		2024
	(In thousands)
Products and services transferred at a point in time	$	4,553	$	4,878
Products and services transferred over time	5,639		4,903
Total revenue from contracts with customers	$	10,192	$	9,781

Contract Balances

The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers as of the dates indicated:


	March 31, 2025		December 31, 2024
	(In thousands)
Receivables, which are included in "Other assets"	$	1,718	$	1,679

Contract liabilities, which are included in "Accrued interest payable and other liabilities"	$	331	$	348

Contract liabilities relate to advance consideration received from customers for which revenue is recognized over the life of the contract. The change in contract liabilities for the three months ended March 31, 2025 due to revenue recognized that was included in the contract liability balance at the beginning of the period was $ 17,000 .

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 15. STOCKHOLDERS' EQUITY

Stock-Based Compensation

At the special meeting of stockholders held on November 22, 2023, the Company's stockholders approved the Amended and Restated Banc of California, Inc. 2018 Stock Incentive Plan (the “Amended and Restated 2018 Plan”). The Company’s Amended and Restated 2018 Plan permits stock-based compensation awards to officers, directors, employees, and consultants and will remain in effect until November 30, 2033. The Amended and Restated 2018 Plan authorizes grants of stock-based compensation instruments to purchase or issue up to 10,717,882 shares. As of March 31, 2025, there wer e 3,290,653 shares available for grant under the Amended and Restated 2018 Plan. In addition to the Amended and Restated 2018 Plan, in connection with the November 30, 2023 merger of PacWest Bancorp with and into Banc of California, Inc. (the “Merger”), the Company assumed the Amended and Restated PacWest Bancorp 2017 Stock Incentive Plan (the "PacWest 2017 Plan") with respect to PacWest's outstanding stock-based awards.

Restricted Stock (RSUs, TRSAs, and PSUs)

Restricted stock amortization totaled $ 5.2 million and $ 4.4 million for the three months ended March 31, 2025 and 2024. Such amounts are included in "Compensation expense" on the condensed consolidated statements of earnings. The amount of unrecognized compensation expense related to all unvested RSUs, TRSAs, and PRSUs as of March 31, 2025 totaled $ 58.2 million .

Restricted Stock Units and Time-Based Restricted Stock Awards

At March 31, 2025, there were 2,785,335 shares of unvested RSUs outstanding pursuant to the Amended and Restated 2018 Plan. At March 31, 2025, there were 189,495 s h ar es of unvested TRSAs outstanding pursuant to the PacWest 2017 Plan. The RSUs and TRSAs generally vest over a service period of three or four years from the date of the grant or immediately upon death of an employee. Compensation expense related to RSUs and TRSAs is based on the fair value of the underlying stock on the award date and is recognized over the vesting period using the straight‑line method. TRSAs were assumed by the Company in connection with the Merger and continue to vest in accordance with the original vesting schedule of the awards.

Performance Stock Units

At March 31, 2025, there were 2,478,485 units of unvested PSUs outstanding. Compensation expense related to the PSUs is based on the fair value of the underlying stock on the award date and is amortized over the vesting period using the straight-line method unless it is determined that: (1) attainment of the financial metrics is less than probable, in which case a portion of the amortization is suspended, or (2) attainment of the financial metrics is improbable, in which case a portion of the previously recognized amortization is reversed and also suspended. Annual PSU expense may vary during the performance period based upon changes in management's estimate of the number of shares that may ultimately vest. In the case where the performance target for the PSUs is based on a market condition (such as total shareholder return), the amortization is neither reversed nor suspended if it is subsequently determined that the attainment of the performance target is less than probable or improbable and the employee continues to meet the service requirement of the award.

Classes of Stock and Equity Instruments

Preferred Stock

Depositary shares each representing 1/40th of a share of 7.75 % Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series F (“Series F Preferred Stock”) are listed on the NYSE under the symbol “BANC/PF.” The Series F Preferred Stock ranks senior to our common stock and common stock equivalents both as to dividends and liquidation preference but generally have no voting rights. There are 50,000,000 total preferred shares authorized, of which 27,000,000 were authorized for the non-voting common stock equivalents (“NVCE”) and 513,250 were authorized and outstanding for the Series F Preferred stock at March 31, 2025 and December 31, 2024.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Common Stock

Our voting common stock is listed on the NYSE under the symbol “BANC” and there were 446,863,844 shares authorized at March 31, 2025 and December 31, 2024 and 155,947,503 shares outstanding at March 31, 2025 and 158,346,529 shares outstanding at December 31, 2024.

Class B Non-Voting Common Stock

Our Class B non-voting common stock is not listed or traded on any national securities exchange or automated quotation system, and there currently is no established trading market for such stock. The Class B non-voting common stock ranks equally with, and has identical rights, preferences, and privileges as the voting common stock with respect to dividends and liquidation preference but generally have no voting rights. There were 3,136,156 shares authorized at March 31, 2025 and December 31, 2024 and 477,321 shares outstanding at March 31, 2025 and at December 31, 2024.

Non-Voting Common Stock Equivalents

In conjunction with the Merger, the Company issued a new class of NVCE from authorized preferred stock, which were issued under the Investment Agreements (as defined below). Our NVCE stock is not listed or traded on any national securities exchange or automated quotation system, and there currently is no established trading market for such stock. The NVCE stock does not have voting rights and ranks equally with, and has identical rights, preferences, and privileges as, the voting common stock with respect to dividends or distributions (including regular quarterly dividends) declared by the Board and rights upon any liquidation, dissolution, winding up or similar proceeding of the Company. There were 27,000,000 shares authorized at March 31, 2025 and December 31, 2024 and 9,790,600 shares outstanding at March 31, 2025 and at December 31, 2024.

Warrants

In conjunction with the Merger and per the terms of the investment agreements, each dated July 25, 2023, entered into by Banc of California, Inc. with the Warburg Investors (such agreement, the "Warburg Investment Agreement") and the Centerbridge Investor (together with the Warburg Investment Agreement, the "Investment Agreements"), respectively, the Warburg Investors received warrants to purchase 15,853,659 shares of NVCE stock (the "Warburg Warrants"), and the Centerbridge Investor received warrants to purchase 3,048,780 shares of voting common stock (the “Centerbridge Warrants”), each with an initial exercise price of $ 15.375 per share, subject to customary anti-dilution adjustments provided for under the warrant agreements. The warrants carry a term of seven years but are subject to mandatory exercise when the market price of the voting common stock reaches or exceeds $ 24.60 for 20 or more trading days during any 30-consecutive trading day period. These warrants are being accounted for as equity. The exercise price of the Centerbridge Warrants will be adjusted downward, per the terms of their warrant agreement, and the conversion price of the Warburg Warrants will also be adjusted, per the terms of their warrant agreement and the NVCE Articles Supplementary, for cash distributions to stockholders of the Company’s voting common stock, including the Company’s quarterly cash dividend.

Stock Repurchase Program

Subsequent to March 31, 2025 and through April 21, 2025, we repurchased an additional 8,809,814 shares of common stock at a weighted average price per share of $ 12.65 , or $ 111.5 million in the aggregate. Since the announcement of the stock repurchase program on March 17, 2025 and through April 21, 2025, we have repurchased a total of 11,494,637 shares of common stock at a weighted average price per share of $ 13.05 , or $ 150.0 million in the aggregate. On April 23, 2025, the Company announced an upsize of its stock repurchase program from $ 150.0 million to $ 300.0 million and expanded the program to cover both the Company's common stock and depositary shares representing its preferred stock. As before, the repurchase authorization expires in March 2026.

Purchases may be made in open-market transactions, in block transactions on or off an exchange, in privately negotiated transactions or by other means as determined by our management and in accordance with the regulations of the SEC. The timing of purchases and the number of shares repurchased under the program will depend on a variety of factors including price, trading volume, corporate and regulatory requirements, and market conditions. The program may be changed, suspended, or discontinued at any time.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 16. SEGMENT REPORTING

The Company provides banking and treasury management services to small-, middle-market, and venture-backed businesses. The principal business activities of the Company are gathering deposits, originating and servicing loans and leases and investing in investment securities. The Company's CODM is the Chief Executive Officer.

The Company operates as one reportable segment - Commercial Banking - based on how the CODM manages the business activities, which are described above. The CODM uses net earnings to evaluate income generated from segment assets, assess performance, decide how to allocate resources, determine dividend availability, establish management's compensation, and guide other strategic decisions. The accounting policies of the Commercial Banking segment are the same as those described in Note 1. Nature of Operations and Summary of Significant Accounting Policies , of our audited consolidated financial statements included in our Form 10-K. Additionally, the Company does not have intra-entity sales or transfers.

The following presents our operating segment income statement, including significant expense categories, regularly reviewed by the CODM, and the reconciliation of segment net earnings to consolidated net earnings for the periods indicated:


	Three Months Ended
Income Statement	March 31,		December 31,		March 31,
Commercial Banking Segment	2025		2024		2024
	(Unaudited)
	(In thousands)




Total interest income	$	406,655	$	424,519	$	478,704




Total interest expense	174,291		189,234		249,602
Net interest income	232,364		235,285		229,102
Provision for credit losses	9,300		12,801		10,000
Net interest income after provision for credit losses	223,064		222,484		219,102











Noninterest income	33,650		28,989		33,816
Noninterest expense:
Compensation	86,417		77,661		92,236
Customer related expense	27,751		31,672		30,919
Insurance and assessments	7,283		11,179		20,461
Occupancy	15,010		15,678		17,968
Information technology and data processing	15,099		14,546		15,418
Intangible asset amortization	7,160		7,770		8,404
Leased equipment depreciation	6,741		7,096		7,520
Other professional services	4,513		5,498		5,075
Loan expense	2,930		4,489		4,491
Acquisition, integration and reorganization costs	—		( 1,023 )		—

Other expense (1)	10,749		6,804		8,026
Total noninterest expense	183,653		181,370		210,518
Earnings before income taxes	73,061		70,103		42,400
Income tax expense	19,493		13,184		11,548
Segment net earnings (2)	$	53,568	$	56,919	$	30,852

_________________________

(1) Includes business development expense, communications expense, stationery and supplies, employee related expenses, operating and other losses, OREO expenses, and other corporate overhead and operating expenses.

(2) Segment earnings is the same as net earnings reported on the condensed consolidated statements of earnings.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following presents our operating segment balance sheet information and the reconciliation of segment assets to consolidated total assets as of the dates indicated:


Balance Sheet Data	March 31,		December 31,
Commercial Banking Segment	2025		2024
	(In thousands)







Segment total assets (1)	$	33,779,918	$	33,542,864

_________________________

(1) Segment total assets is the same as total assets reported on the condensed consolidated balance sheets.

NOTE 17. RELATED PARTY TRANSACTIONS

Certain of our executive officers and directors, and their related interests, are customers of, or have had transactions with, the Bank in the ordinary course of business, including deposits, loans, and other financial services-related transactions. From time to time, the Bank may make loans to executive officers and directors, and their related interests, in the ordinary course of business and on substantially the same terms and conditions, including interest rates and collateral, as those of comparable transactions with non-insiders prevailing at the time, in accordance with the Bank's underwriting guidelines, and do not involve more than the normal risk of collectability or present other unfavorable features. As of March 31, 2025, no related party loans were categorized as nonaccrual, past due, restructured, or potential problem loans.

Transactions with Related Parties

The Company and the Bank have engaged in the transaction described below with the Company's current directors, executive officers, and beneficial owners of more than five percent of the outstanding shares of the Company's voting common stock and certain persons related to them.

The Company is a party to a services agreement with IntraFi Network LLC (“IntraFi”) whereby IntraFi provides the Bank with certain insured cash sweep services from time to time. Affiliates of funds managed by Warburg Pincus LLC hold a material investment interest in IntraFi. Additionally, one of Warburg Pincus LLC’s principals, Todd Schell, who currently serves as a member of the Board, is a member of the board of directors of IntraFi. Affiliates of funds managed by Warburg Pincus LLC beneficially owned approximately 9.97 % of the Company’s outstanding voting common stock as of March 31, 2025, based on information reported on a Schedule 13D filed with the SEC on August 1, 2024. For the three months ended March 31, 2025 and 2024, the amounts paid to IntraFi for certain insured cash sweep services were $ 1.8 million and $ 2.3 million .

NOTE 18. SUBSEQUENT EVENTS

Stock Repurchase Program

Subsequent to March 31, 2025 and through April 21, 2025, we repurchased 8,809,814 shares of common stock at a weighted average price per share of $ 12.65 , or $ 111.5 million in the aggregate. Since the announcement of the stock repurchase program on March 17, 2025 and through April 21, 2025, we have repurchased a total of 11,494,637 shares of common stock at a weighted average price per share of $ 13.05 per share, or $ 150.0 million in the aggregate. On April 23, 2025, the Company announced an upsize of its stock repurchase program from $ 150.0 million to $ 300.0 million and expanded the program to cover both the Company's common stock and depositary shares representing its preferred stock. As before, the repurchase authorization expires in March 2026.

Purchases may be made in open-market transactions, in block transactions on or off an exchange, in privately negotiated transactions or by other means as determined by the Company's management and in accordance with the regulations of the SEC. The timing of purchases and the number of shares repurchased under the program will depend on a variety of factors including price, trading volume, market conditions, and corporate and regulatory requirements. The program may be changed, suspended, or discontinued at any time.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Payoff of Senior Notes

On April 4, 2025, the Company repaid in full all of the 5.25 % Senior Notes, which had an aggregate principal amount of $ 174.0 million, that were originally issued on March 31, 2015 and scheduled to mature on April 15, 2025.

Common Stock Dividend

On May 8, 2025, the Company announced that the Board of Directors had declared a quarterly cash dividend of $ 0.10 per common share. The cash dividend is payable on July 1, 2025, to stockholders of record at the close of business on June 16, 2025.

Preferred Stock Dividend

On May 8, 2025, the Company announced that the Board of Directors had declared a quarterly cash dividend of $ 0.4845 per Depositary Share. The cash dividend is payable on June 2, 2025 to stockholders of record at the close of business on May 19, 2025.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is management's discussion and analysis of the major factors that influenced our results of operations and financial condition as of and for the three and three months ended March 31, 2025. This analysis should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024 (the "Form 10-K") and with the unaudited condensed consolidated financial statements and notes thereto set forth in this Quarterly Report on Form 10-Q.

Forward-Looking Information

This Quarterly Report on Form 10-Q contains certain “forward-looking statements” about the Company and its subsidiaries within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, strategies, goals, and projections and including statements about our expectations regarding our operating expenses, profitability, allowance for credit losses, net interest margin, net interest income, deposit growth, loan and lease portfolio growth and production, acquisitions and related integrations, maintaining capital adequacy, liquidity, goodwill, and interest rate risk management. All statements contained in this Quarterly Report on Form 10-Q that are not clearly historical in nature are forward-looking, and the words “anticipate,” “assume,” “intend,” “believe,” “forecast,” “expect,” “estimate,” “plan,” “continue,” “will,” “should,” “look forward” and similar expressions are generally intended to identify forward-looking statements. All forward-looking statements (including statements regarding future financial and operating results and future transactions and their results) involve risks, uncertainties, and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Actual results could differ materially from those contained or implied by such forward-looking statements for a variety of factors, including without limitation:

• changes in general economic conditions, either nationally or in our market areas, including the impact of tariffs, supply chain disruptions, and the risk of recession or an economic downturn;

• changes in the interest rate environment, including the recent and potential future changes in the FRB benchmark rate, which could adversely affect our revenue and expenses, the value of assets and obligations, the realization of deferred tax assets, the availability and cost of capital and liquidity, and the impacts of continuing or renewed inflation;

• the credit risks of lending activities, which may be affected by deterioration in real estate markets and the financial condition of borrowers, and the operational risk of lending activities, including the effectiveness of our underwriting practices and the risk of fraud, any of which may lead to increased loan delinquencies, losses, and non-performing assets, and may result in our allowance for credit losses not being adequate;

• fluctuations in the demand for loans, and fluctuations in commercial and residential real estate values in our market area;

• the quality and composition of our securities portfolio;

• our ability to develop and maintain a strong core deposit base, including among our venture banking clients, or other low cost funding sources necessary to fund our activities particularly in a rising or high interest rate environment;

• the rapid withdrawal of a significant amount of demand deposits over a short period of time;

• the costs and effects of litigation;

• risks related to the Company's acquisitions, including disruption to current plans and operations; difficulties in customer and employee retention; fees, expenses and charges related to these transactions being significantly higher than anticipated; and our inability to achieve expected revenues, cost savings, synergies, and other benefits;

• results of examinations by regulatory authorities of the Company and the possibility that any such regulatory authority may, among other things, limit our business activities, restrict our ability to invest in certain assets, refrain from issuing an approval or non-objection to certain capital or other actions, increase our allowance for credit losses, result in write-downs of asset values, restrict our ability or that of our bank subsidiary to pay dividends, or impose fines, penalties or sanctions;

• legislative or regulatory changes that adversely affect our business, including changes in tax laws and policies, accounting policies and practices, privacy laws, and regulatory capital or other rules;

• the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses;

• errors in estimates of fair values of certain of our assets and liabilities, which may result in significant changes in valuation;

• failures or security breaches with respect to the network, applications, vendors, and computer systems on which we depend, including due to cybersecurity threats;

• our ability to attract and retain key members of our senior management team;

• the effects of climate change, severe weather events, natural disasters such as earthquakes and wildfires, pandemics, epidemics, and other public health crises, acts of war or terrorism, and other external events on our business;

• the impact of bank failures or other adverse developments at other banks on general depositor and investor sentiment regarding the stability and liquidity of banks;

• the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital;

• our existing indebtedness, together with any future incurrence of additional indebtedness, could adversely affect our ability to raise additional capital and to meet our debt obligations;

• the risk that we may incur significant losses on future asset sales; and

• other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described in our Form 10-K and from time to time in other documents that we file with or furnish to the SEC.

All forward-looking statements included in this Quarterly Report on Form 10-Q are based on information available at the time the statement is made. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

Overview

Banc of California, Inc., a Maryland corporation, was incorporated in March 2002 and serves as the holding company for its wholly owned subsidiary, Banc of California (the “Bank”), a California state-chartered bank and member of the FRB. When we refer to the “holding company," we are referring to Banc of California, Inc., the parent company, on a stand-alone basis. When we refer to “we,” “us,” “our,” or the “Company,” we are referring to Banc of California, Inc. and its consolidated subsidiaries including the Bank, collectively. The Bank is a premier relationship-based business bank, providing banking and treasury management services to small-, middle-market, and venture-backed businesses. The Bank offers a broad range of loan and deposit products and services through full-service branches throughout California and in Denver, Colorado, and Durham, North Carolina, as well as through regional offices nationwide. The Bank also provides full-stack payment processing solutions through its subsidiary, Deepstack Technologies, and serves the community association management industry nationwide with its technology-forward platform, SmartStreet TM .

Recent Events

Stock Repurchase Program

On March 17, 2025, the Company announced that our Board of Directors authorized a stock repurchase program of up to $150.0 million of our common stock. During the first quarter of 2025, common stock repurchased under the stock repurchase program totaled 2,684,823 shares at a weighted average price per share of $14.36, or $38.5 million in the aggregate. Through April 21, 2025, repurchases of Company common stock totaled 11,494,637 shares at a weighted average price per share of $13.05, or $150.0 million in the aggregate. On April 23, 2025, the Company announced an upsize of its stock repurchase program from $150.0 million to $300.0 million and expanded the program to cover both the Company's common stock and depositary shares representing its preferred stock.

The repurchase authorization expires in March 2026. Purchases may be made in open-market transactions, in block transactions on or off an exchange, in privately negotiated transactions or by other means as determined by our management and in accordance with the regulations of the SEC. The timing of purchases and the number of shares repurchased under the program will depend on a variety of factors including price, trading volume, corporate and regulatory requirements, and market conditions. The program may be changed, suspended, or discontinued at any time.

Key Performance Indicators

Among other factors, our operating results generally depend on the following key performance indicators:

The Level of Net Interest Income

Net interest income is the excess of interest earned on our interest-earning assets over the interest paid on our interest-bearing liabilities. Net interest margin is net interest income (annualized if related to a quarterly period) expressed as a percentage of average interest-earning assets.

Net interest income is affected by changes in both interest rates and the volume of average interest-earning assets and interest-bearing liabilities. Our primary interest-earning assets are loans and investment securities, and our primary interest-bearing liabilities are deposits and borrowings. While our deposit balances will fluctuate depending on our customers’ liquidity and cash flow, market conditions, and competitive pressures, we seek to minimize the impact of these variances by attracting a high percentage of noninterest-bearing deposits. We continue to focus on growing granular relationship-based deposits as a key component of our core deposit strategy, which supports a stable funding base and strengthens our client franchise.

Loan and Lease Production

We actively seek new lending opportunities under an array of lending products. Our lending activities include real estate mortgage loans, real estate construction and land loans, commercial loans and leases, and a small amount of consumer lending. Our commercial real estate loans and real estate construction loans are secured by a range of property types. Our commercial loans and leases portfolio is diverse and generally includes various asset-secured loans, lender finance loans, equipment-secured loans and leases, venture capital loans to support venture capital firms’ operations and the operations of entrepreneurial and venture-backed companies during the various phases of their early life cycles, warehouse loans, and secured business loans.

Our loan origination process emphasizes credit quality. On occasion, to augment our internal loan production, we have purchased loans such as single-family residential mortgage loans, multi-family loans from other banks, and private student loans from third-party lenders. These loan purchases help us manage the concentrations in our portfolio as they diversify the geographic risk, interest-rate risk, credit risk, and product composition of our loan portfolio. Achieving net loan growth is subject to many factors, including maintaining strict credit standards, competition from other lenders, and borrowers that opt to prepay loans.

The Magnitude of Credit Losses

We emphasize credit quality in originating and monitoring our loans and leases, and we measure our success by the levels of our classified loans and leases, nonaccrual loans and leases, and net charge-offs. We maintain an ACL on loans and leases, which is the sum of the ALLL and the reserve for unfunded loan commitments. Provisions for credit losses are charged to operations as and when needed for both on and off-balance sheet credit exposures. Loans and leases that are deemed uncollectible are charged off and deducted from the ALLL. Recoveries on loans and leases previously charged off are added to the ALLL. The provision for credit losses on the loan and lease portfolio is based on our allowance methodology, which considers the impact of assumptions and is reflective of historical experience, economic forecasts viewed to be reasonable and supportable by management, the current loan and lease composition, and relative credit risks known as of the balance sheet date. For originated and acquired credit-deteriorated loans, a provision for credit losses may be recorded to reflect credit deterioration after the origination date or after the acquisition date, respectively.

We regularly review loans and leases to determine whether there has been any deterioration in credit quality resulting from borrower operations or changes in collateral value or other factors which may affect the collectability of our loans and leases. Changes in economic conditions, such as the rate of economic growth, the unemployment rate, rate of inflation, increases in the general level of interest rates, declines in real estate values, changes in commodity prices, and adverse conditions in borrowers’ businesses, could negatively impact our borrowers and cause us to adversely classify loans and leases. An increase in classified loans and leases generally results in increased provisions for credit losses and an increased ACL. Any deterioration in the commercial real estate market may lead to increased provisions for credit losses because our loans are concentrated in commercial real estate loans.

The Level of Noninterest Expense

Our noninterest expense includes fixed and controllable overhead, the largest components of which are compensation expense, customer related expense, information technology and data processing expense, and occupancy expense. Customer related expenses are primarily earnings credit rate ("ECRs") payments to customers and are mostly driven by the Homeowners Association ("HOA") business. ECRs are rate-sensitive and fluctuate in response to changes in the federal funds rate. Additionally, noninterest expense included insurance and assessments, intangible asset amortization, leased equipment depreciation, other professional services, loan expenses, acquisition, integration and organization costs, and other expense. We monitor our efficiency ratio as a key measure of operational performance.

Critical Accounting Policies and Estimates

The following discussion and analysis of financial condition and results of operations are based upon our condensed consolidated financial statements and the notes thereto, which have been prepared in accordance with U.S. GAAP. The preparation of the condensed consolidated financial statements requires us to make a number of estimates and assumptions that affect the reported amounts and disclosures in the condensed consolidated financial statements. On an ongoing basis, we evaluate our estimates and assumptions based upon historical experience and various other factors and circumstances. We believe that our estimates and assumptions are reasonable; however, actual results may ultimately differ significantly from these estimates and assumptions, which could have a material adverse effect on the carrying value of assets and liabilities at the balance sheet dates and on our results of operations for the reporting periods.

Our accounting policies and estimates are fundamental to understanding the following discussion and analysis of financial condition and results of operations. We identify critical policies and estimates as those that require management to make particularly difficult, subjective, and/or complex judgments about matters that are inherently uncertain and because of the likelihood that materially different amounts would be reported under different conditions or using different assumptions. These policies and estimates relate to the ACL on loans and leases held for investment, business combinations, the carrying value of goodwill and other intangible assets, and the realization of deferred income tax assets and liabilities.

Our critical accounting policies and estimates are described in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Form 10-K.

Non-GAAP Financial Measures

We use certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP. The methodology for determining these non-GAAP measures may differ among companies and may not be comparable. We used the following non-GAAP measures in this Quarterly Report on Form 10-Q:

• Return on average tangible common equity, tangible common equity, tangible book value per common share, and efficiency ratio: Given that the use of these measures is prevalent among banking regulators, investors, and analysts, we disclose them in addition to the related GAAP measures of return on average equity, book value per common share, and noninterest expense to total revenue, respectively. The reconciliations of these non-GAAP measures to the GAAP measures are presented in the following tables for and as of the periods presented.


		Three Months Ended
		March 31,			December 31,			March 31,
Return on Average Tangible Common Equity		2025			2024			2024
		(Dollars in thousands)
Net earnings		$	53,568		$	56,919		$	30,852

Earnings before income taxes		$	73,061		$	70,103		$	42,400
Add:	Intangible asset amortization	7,160			7,770			8,404

	Adjusted earnings before income taxes	80,221			77,873			50,804
Adjusted income tax expense (1)		20,296			19,281			13,412
	Adjusted net earnings	59,925			58,592			37,392
Less:	Preferred stock dividends	9,947			9,947			9,947
	Adjusted net earnings available to
	common and equivalent stockholders	$	49,978		$	48,645		$	27,445

Average stockholders' equity		$	3,524,181		$	3,486,164		$	3,390,532
Less:	Average intangible assets	344,610			352,907			360,680
Less:	Average preferred stock	498,516			498,516			498,516
	Average tangible common equity	$	2,681,055		$	2,634,741		$	2,531,336

Return on average equity (2)		6.16		%	6.50		%	3.66		%
Return on average tangible common equity (3)		7.56		%	7.35		%	4.36		%

___________________________________

(1) Effective tax rates of 25.30%, 24.76% a nd 26.40% used for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

(2) Annualized net earnings divided by average stockholders' equity.

(3) Annualized adjusted net earnings available to common and equivalent stockholders divided by average tangible common equity.


Tangible Common Equity and	March 31,		December 31,
Tangible Book Value Per Common Share	2025		2024
	(Dollars in thousands, except per share data)
Stockholders’ equity	$	3,521,656	$	3,499,949
Less: Preferred stock	498,516		498,516
Total common equity	3,023,140		3,001,433
Less: Goodwill and intangible assets	340,458		347,465
Tangible common equity	$	2,682,682	$	2,653,968







Book value per common share (1)	$	18.17	$	17.78
Tangible book value per common share (2)	$	16.12	$	15.72
Common and equivalent shares outstanding (3)	166,403,086		168,825,656

_______________________________________

(1) Total common equity divided by common and equivalent shares outstanding.

(2) Tangible common equity divided by common and equivalent shares outstanding.

(3) Common and equivalent shares outstanding include non-voting common stock equivalents that are participating securities.


	Three Months Ended
	March 31,			December 31,			March 31,
Efficiency Ratio	2025			2024			2024
	(Dollars in thousands)
Noninterest expense (1)	$	183,653		$	181,370		$	210,518
Less: Intangible asset amortization	(7,160)			(7,770)			(8,404)
Less: Acquisition, integration, and
reorganization costs	—			1,023			—
Noninterest expense used for
efficiency ratio	$	176,493		$	174,623		$	202,114

Net interest income	$	232,364		$	235,285		$	229,102
Noninterest income	33,650			28,989			33,816
Total revenue	266,014			264,274			262,918
Add: Loss on sale of securities	—			454			—
Total revenue used for efficiency ratio	$	266,014		$	264,728		$	262,918

Noninterest expense to total revenue	69.04		%	68.63		%	80.07		%
Efficiency ratio (2)	66.35		%	65.96		%	76.87		%

_______________________________________

(1) Includes customer related expense of $27,751, $31,672, and $30,919 for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

(2) Noninterest expense used for efficiency ratio divided by total revenue used for efficiency ratio.

Results of Operations

The Company reported net earnings available to common and equivalent stockholders of $43.6 million, or $0.26 per diluted common share, for the first quarter of 2025. This compares to net earnings available to common and equivalent stockholders of $47.0 million, or $0.28 per diluted common share, for the fourth quarter of 2024, and net earnings available to common and equivalent stockholders of $20.9 million, or $0.12 per diluted common share, for the first quarter of 2024.

Financial results for the first quarter of 2025 included:

• Total loans of $24.1 billion grew by 6% annualized or $344.9 million from the fourth quarter of 2024 driven primarily by growth in the commercial and industrial ("C&I") loan portfolio subclasses of lender finance, equity fund loans, and warehouse lending, as well as an increase in multi-family real estate mortgage loans.

• New loan originations totaled $2.6 billion including production, purchased loans, and unfunded new commitments with a weighted average interest rate on production of 7.20%.

• Repurchase of $38.5 million of common stock with a weighted average price per share of $14.36 during the first quarter, and $150.0 million with a weighted average price per share of $13.05 cumulatively through April 21, 2025, or 6.8% of common shares outstanding as of March 17, 2025, the date that the $150 million authorization was announced.

• Net interest margin up 4 basis points from the fourth quarter of 2024 to 3.08% and up 42 basis points from the first quarter of 2024.

• Average total cost of deposits declined by 14 basis points to 2.12% from the fourth quarter of 2024 and down 54 basis points from the first quarter of 2024.

• Average noninterest-bearing deposits stable at 29% of average total deposits for the first quarter of 2025 and fourth quarter of 2024, and up from 26% for the first quarter of 2024.

• High liquidity levels, with available on-balance sheet liquidity and unused borrowing capacity of $15.1 billion at March 31, 2025, which was 2.1 times greater than uninsured and uncollateralized deposits.

• Strong capital ratios well above the regulatory thresholds for "well capitalized" banks, including a 12.86% Tier 1 capital ratio and a 10.45% CET 1 capital ratio.

• Continued growth in book value per share of 2.2% to $18.17 and tangible book value per share (1) of 2.5% to $16.12 from the fourth quarter of 2024, with both metrics increasing by 6.1% and 7.3%, respectively, from the first quarter of 2024.

• Strong credit quality with low net charge-offs at 0.24% of average loans and leases. Appropriate credit reserves with the ACL ratio mostly flat at 1.10% of total loans and leases.

___________________________________

(1) See "- Non-GAAP Financial Measures."

The following table presents financial results and performance ratios for the periods indicated:


	Three Months Ended
	March 31,			December 31,			March 31,
	2025			2024			2024
	(Dollars in thousands, except per share data)
Earnings Summary:
Interest income	$	406,655		$	424,519		$	478,704
Interest expense	(174,291)			(189,234)			(249,602)
Net interest income	232,364			235,285			229,102
Provision for credit losses	(9,300)			(12,801)			(10,000)
Noninterest income	33,650			28,989			33,816
Operating expense	(183,653)			(182,393)			(210,518)
Acquisition, integration and reorganization costs	—			1,023			—


Earnings before income taxes	73,061			70,103			42,400
Income tax expense	(19,493)			(13,184)			(11,548)
Net earnings	53,568			56,919			30,852
Preferred stock dividends	(9,947)			(9,947)			(9,947)
Net earnings available to
common and equivalent stockholders	$	43,621		$	46,972		$	20,905

Per Common Share Data:
Diluted earnings per share (1)	$	0.26		$	0.28		$	0.12
Book value per share (1)	$	18.17		$	17.78		$	17.13
Tangible book value per share (1)(2)	$	16.12		$	15.72		$	15.03

Performance Ratios:
Return on average assets	0.65		%	0.67		%	0.33		%
Return on average tangible common equity (2)	7.56		%	7.35		%	4.36		%
Net interest margin	3.08		%	3.04		%	2.66		%
Yield on average loans and leases	5.90		%	6.01		%	6.08		%
Cost of average total deposits	2.12		%	2.26		%	2.66		%
Noninterest expense to average total assets	2.24		%	2.15		%	2.26		%
Noninterest expense to total revenue (3)	69.04		%	68.63		%	80.07		%
Efficiency ratio (4)	66.35		%	65.96		%	76.87		%

Capital Ratios (consolidated):
Common equity tier 1 capital ratio	10.45		%	10.55		%	10.09		%
Tier 1 capital ratio	12.86		%	12.97		%	12.38		%
Total capital ratio	16.93		%	17.05		%	16.40		%
Tier 1 leverage capital ratio	10.19		%	10.15		%	9.12		%
Risk-weighted assets	$	26,104,878		$	25,976,675		$	27,513,193

_____________________________

(1) Shares include non-voting common stock equivalents that are participating securities.

(2) See "- Non-GAAP Financial Measures."

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

(4) Ratio calculated by dividing noninterest expense (less intangible asset amortization and acquisition, integration and reorganization costs) by total revenue (less gain(loss) on sale of securities). See "- Non-GAAP Financial Measures." Noninterest expense includes customer related expense of $27,751, $31,672, and $30,919 for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

Net Interest Income and Net Interest Margin

The following tables summarize the distribution of average assets, liabilities, and stockholders’ equity, as well as interest income and yields earned on average interest-earning assets and interest expense and rates paid on average interest-bearing liabilities, presented on a tax equivalent basis, for the periods indicated:


	Three Months Ended
	March 31, 2025						December 31, 2024						March 31, 2024
			Interest		Yields				Interest		Yields				Interest		Yields
	Average		Income/		and		Average		Income/		and		Average		Income/		and
	Balance		Expense		Rates		Balance		Expense		Rates		Balance		Expense		Rates
	(Dollars in thousands)
ASSETS:
Loans and leases (1)	$	23,788,647	$	346,103	5.90	%	$	23,649,271	$	357,303	6.01	%	$	25,518,590	$	385,465	6.08	%
Investment securities	4,734,037		37,862		3.24	%	4,700,742		37,743		3.19	%	4,721,556		34,303		2.92	%
Deposits in financial institutions	2,088,139		22,690		4.41	%	2,474,732		29,473		4.74	%	4,374,968		58,936		5.42	%
Total interest‑earning assets	30,610,823		406,655		5.39	%	30,824,745		424,519		5.48	%	34,615,114		478,704		5.56	%
Other assets	2,697,562						2,737,283						2,925,593
Total assets	$	33,308,385					$	33,562,028					$	37,540,707

LIABILITIES AND STOCKHOLDERS’ EQUITY:
Interest checking	$	7,343,451	47,879		2.64	%	$	7,659,320	56,408		2.93	%	$	7,883,177	61,549		3.14	%
Money market	5,415,716		33,003		2.47	%	5,003,118		31,688		2.52	%	5,737,837		41,351		2.90	%
Savings	1,948,649		12,857		2.68	%	1,954,625		14,255		2.90	%	2,036,129		18,030		3.56	%
Time	4,498,268		46,791		4.22	%	4,645,115		51,734		4.43	%	6,108,321		73,877		4.86	%
Total interest‑bearing deposits	19,206,084		140,530		2.97	%	19,262,178		154,085		3.18	%	21,765,464		194,807		3.60	%
Borrowings	1,397,720		18,421		5.34	%	1,399,080		18,993		5.40	%	2,892,406		38,124		5.30	%
Subordinated debt	942,817		15,340		6.60	%	942,221		16,156		6.82	%	937,005		16,671		7.16	%
Total interest‑bearing liabilities	21,546,621		174,291		3.28	%	21,603,479		189,234		3.48	%	25,594,875		249,602		3.92	%
Noninterest‑bearing demand deposits	7,714,830						7,905,750						7,685,027
Other liabilities	522,753						566,635						870,273
Total liabilities	29,784,204						30,075,864						34,150,175
Stockholders’ equity	3,524,181						3,486,164						3,390,532
Total liabilities and stockholders' equity	$	33,308,385					$	33,562,028					$	37,540,707
Net interest income			$	232,364					$	235,285					$	229,102
Net interest rate spread					2.11	%					2.00	%					1.64	%
Net interest margin					3.08	%					3.04	%					2.66	%

Total deposits (2)	$	26,920,914	$	140,530	2.12	%	$	27,167,928	$	154,085	2.26	%	$	29,450,491	$	194,807	2.66	%
Total funds (3)	$	29,261,451	$	174,291	2.42	%	$	29,509,229	$	189,234	2.55	%	$	33,279,902	$	249,602	3.02	%

_____________________

(1) Total loans are net of deferred fees, related direct costs, and premiums and discounts, but exclude the allowance for loan losses. Includes net loan discount accretion of $16.0 million, $20.7 million, and $22.4 million for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024.

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

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

First Quarter of 2025 Compared to Fourth Quarter of 2024

Net interest income decreased by $2.9 million to $232.4 million for the first quarter of 2025 from $235.3 million for the fourth quarter of 2024 attributable primarily to the following:

• A decrease of $11.2 million in interest income from loans due primarily to lower day count, lower loan prepayments, and lower market interest rates reflective of a full quarter impact of the cumulative 50 basis points federal funds rate cuts in the fourth quarter.

• A decrease of $6.8 million in interest income from deposits in financial institutions driven by lower balances, as we maintained a lower cash target level in the first quarter of 2025, and lower market interest rates.

This was partially offset by:

• A decrease of $13.6 million in interest expense due primarily to lower interest paid on interest-bearing deposits as a result of deposit rate repricing driven by the federal funds rate cuts in the fourth quarter and lower day count.

• A decrease of $1.4 million in interest expense paid on our borrowings and subordinated debt driven by lower market interest rates.

The net interest margin was 3.08% for the first quarter of 2025 compared to 3.04% for the fourth quarter of 2024. Our net interest margin increased by 4 basis points primarily driven by a lower average total cost of funds, offset partially by a lower average yield on interest-earning assets as described below:

• The average total cost of funds decreased by 13 basis points to 2.42% for the first quarter of 2025 compared to 2.55% for the fourth quarter of 2024 due mainly to lower market interest rates and a lower balance of average total deposits. The average cost of deposits decreased by 14 basis points to 2.12% in the first quarter of 2025 from 2.26% for the fourth quarter of 2024 reflecting a full quarter impact of the federal funds rate cuts. Average total deposits decreased by $247.0 million , with average noninterest-bearing deposits decreasing by $190.9 million for the first quarter of 2025 compared to the fourth quarter of 2024, and average interest-bearing deposits decreasing by $56.1 million for those same comparative periods. Average noninterest-bearing deposits represented 29% of average total deposits in both quarters.

• The average yield on interest-earning assets decreased by 9 basis points to 5.39% for the first quarter of 2025 compared to 5.48% for the fourth quarter of 2024 due mainly to the average yield on deposits in financial institutions decreasing by 33 basis points and the average yield on loans and leases decreasing by 11 basis points, offset partially by the average yield on investment securities increasing by 5 basis points. The average yield on deposits in financial institutions was 4.41% for the first quarter of 2025 compared to 4.74% for the fourth quarter of 2024, driven by the federal funds rate cuts as described above. The average yield on loans and leases was 5.90% for the first quarter of 2025 compared to 6.01% for the fourth quarter of 2024 due primarily to aforementioned lower loan prepayments and lower market interest rates. These decreases were partially offset by an increase in the average yield on investment securities, which was 3.24% in the first quarter of 2025 compared to 3.19% in the fourth quarter of 2024 as we continued to benefit from the balance sheet repositioning actions taken in 2024 and the purchase of and reinvestment into higher-yielding securities. Additionally, average deposits in financial institutions decreased by $386.6 million to $2.1 billion in the first quarter of 2025 from $2.5 billion in the fourth quarter of 2024 as we maintained a lower cash target level.

First Quarter of 2025 Compared to First Quarter of 2024

Net interest income increased by $3.3 million to $232.4 million for the first quarter of 2025 from $229.1 million for the first quarter of 2024 attributable primarily to the following:

• A decrease of $54.3 million in interest expense paid on deposits, including a $26.3 million reduction in interest expense paid on interest-bearing non-brokered deposits, driven by lower average balances and lower market interest rates following the federal funds rate cuts of 100 basis points during 2024. In addition, interest expense paid on brokered deposits decreased by $28.0 million as higher-cost wholesale funding were paid down during 2024 as we executed our strategy to reduce overall funding costs.

• A decrease of $21.0 million in interest expense paid on our borrowings and subordinated debt, primarily due to a lower balance resulting from the payoff of higher-cost Bank Term Funding Program borrowings, which were partially replaced with lower-cost long-term FHLB advances.

• An increase of $3.6 million in interest income from investment securities reflecting the benefit from the balance sheet repositioning actions taken in 2024 and the purchase of and reinvestment into higher-yielding securities.

This was partially offset by:

• A decrease of $39.4 million in interest income from loans due primarily to lower loan balances mainly resulting from the $1.95 billion sale of the Civic loan portfolio in the third quarter of 2024, lower market interest rates, and a lower day count relative to the first quarter of 2024, which included an additional day due to the leap year.

• A decrease of $36.2 million in interest income from deposits in financial institutions driven by lower balances, as we right-sized our balance sheet and reduced our cash target level after the merger as well as lower market interest rates.

The net interest margin was 3.08% for the first quarter of 2025 compared to 2.66% for the first quarter of 2024. Our net interest margin increased by 42 basis points primarily driven by a lower average total cost of funds, offset partially by a lower average yield on interest-earning assets as described below:

• The average total cost of funds decreased by 60 basis points to 2.42% for the first quarter of 2025 compared to 3.02% for the first quarter of 2024 due mainly to lower market interest rates and an improved funding mix. The average cost of deposits decreased by 54 basis points to 2.12% in the first quarter of 2025 from 2.66% for the first quarter of 2024 mainly driven by the federal funds rate cuts. The improved funding mix is reflected in the increase in average noninterest-bearing deposits, which represent 29% of average total deposits for the first quarter of 2025 compared to 26% of average total deposits for the first quarter of 2024. The shift reflects the success of our relationship-based strategy to grow our deposit base. Additionally, average brokered deposits represented 10% of average total deposits for the first quarter of 2025 compared to 14% of average total deposits for the first quarter of 2024, as we reduced our reliance on higher-cost wholesale funding and lower overall funding costs.

• The average yield on interest-earning assets decreased by 17 basis points to 5.39% for the first quarter of 2025 compared to 5.56% for the first quarter of 2024 due mainly to the average yield on deposits in financial institutions decreasing by 101 basis points and the average yield on loans and leases decreasing by 18 basis points, offset partially by the average yield on investment securities increasing by 32 basis points and an improved funding mix. The average yield on deposits in financial institutions was 4.41% for the first quarter of 2025 compared to 5.42% for the first quarter of 2024, driven by the federal funds rate cuts as described above. The average yield on loans and leases was 5.90% for the first quarter of 2025 compared to 6.08% for the first quarter of 2024 due primarily to lower market interest rates. These decreases were partially offset by an increase in the average yield on investment securities, which was 3.24% in the first quarter of 2025 compared to 2.92% in the first quarter of 2024 and benefited from the balance sheet repositioning actions taken in 2024 and the purchase of and reinvestment into higher-yielding securities. The improved funding mix is reflected by the percentage of average loans and leases to average interest-earning assets increasing to 78% for the first quarter of 2025 from 74% in the first quarter of 2024, and the percentage of average deposits in financial institutions to average interest-earning assets decreasing to 7% for the first quarter of 2025 from 13% for the first quarter of 2024. Average loans and leases decreased by $1.7 billion to $23.8 billion in the first quarter of 2025 from $25.5 billion in the first quarter of 2025, attributable primarily to the $1.95 billion sale of Civic loans in the third quarter of 2024. Additionally, average deposits in financial institutions decreased by $2.3 billion to $2.1 billion in the first quarter of 2025 from $4.4 billion in the first quarter of 2024 as excess cash was used to pay down higher-cost funding and we reduce cash target levels following the merger.

Provision for Credit Losses

The following table sets forth the details of the provision for credit losses on loans and leases held for investment and securities and information regarding credit quality metrics for the periods indicated:


	Three Months Ended
	March 31,			December 31,			March 31,
	2025			2024			2024
	(Dollars in thousands)
Provision For Credit Losses:

Addition to allowance for loan and lease losses	$	9,700		$	11,500		$	11,000

Addition to (reduction in) reserve for unfunded loan commitments	500			1,500			(1,000)
Total loan-related provision	10,200			13,000			10,000
Reduction in allowance for held-to-maturity securities	(900)			—			—
Reduction in allowance for available-for-sale securities	—			(199)			—
Total provision for credit losses	$	9,300		$	12,801		$	10,000

Credit Quality Metrics:

Net charge-offs on loans and leases held for investment (1)	$	14,074		$	26,485		$	1,184

Annualized net charge-offs to average loans and leases	0.24		%	0.45		%	0.02		%
At quarter-end:
Allowance for credit losses	$	264,557		$	268,431		$	320,074

Allowance for credit losses to loans and leases held for investment	1.10		%	1.13		%	1.26		%

Allowance for credit losses to nonaccrual loans and leases held
for investment	123.9		%	141.6		%	219.6		%
Nonaccrual loans and leases held for investment	$	213,480		$	189,605		$	145,785

Nonaccrual loans and leases held for investment to loans and leases
held for investment	0.88		%	0.80		%	0.57		%
Classified loans and leases held for investment	$	764,723		$	563,502		$	366,729
Special mention loans and leases held for investment	$	937,014		$	1,097,315		$	556,509

______________________

(1) See "- Balance Sheet Analysis - Allowance for Credit Losses on Loans and Leases Held for Investment " for detail of charge-offs and recoveries by loan portfolio segment, class, and subclass for the periods presented.

Provision for credit losses are charged to earnings for the ALLL, the reserve for unfunded loan commitments, and the ACL on HTM and AFS securities. The provision for credit losses on our loans and leases held for investment is based on our allowance methodology and is an expense that, in our judgment, is required to maintain an adequate ACL. For further details on our loan-related ACL methodology, see “- Balance Sheet Analysis - Allowance for Credit Losses on Loans and Leases Held for Investment ” contained herein.

First Quarter of 2025 Compared to Fourth Quarter of 2024 and First Quarter of 2024

The provision for credit losses was $9.3 million for the first quarter of 2025 compared to $12.8 million for the fourth quarter of 2024 and $10.0 million for the first quarter of 2024.

• The first quarter of 2025 provision included a $9.7 million provision for loan losses and a $0.5 million provision for unfunded loan commitments, offset partially by a $0.9 million reversal of the provision for credit losses related to HTM securities. The first quarter of 2025 provision for loans and unfunded loan commitments was primarily driven by net charge-off activity experienced during the quarter, partially offset by lower specific reserves and changes in portfolio mix driven by growth in loan segments with low expected credit losses.

• The fourth quarter of 2024 provision included an $11.5 million provision for loan losses and a $1.5 million provision for unfunded loan commitments, offset partially by a $0.2 million reversal of the provision for credit losses related to AFS securities. The fourth quarter of 2024 provision for loans and unfunded loan commitments was driven primarily by net charge-off activity during the quarter.

• The first quarter of 2024 provision included an $11.0 million provision for loan losses offset partially by a $1.0 million reduction in the provision for unfunded commitments. The first quarter of 2024 provision was driven by an increase in qualitative reserves related to loans secured by office properties and an increase in quantitative reserves due to an increase in nonaccrual and classified loans and leases.

Certain circumstances may lead to increased provisions for credit losses on loans and leases in the future. Examples of such circumstances include deterioration in economic conditions and forecasts, an increased amount of classified and/or criticized loans and leases, and net loan and lease and unfunded commitment growth. Deterioration in economic conditions and forecasts may include the rate of economic growth, the unemployment rate, the rate of inflation, changes in the general level of interest rates, changes in real estate values, and adverse conditions in borrowers’ businesses. See further discussion in “- Balance Sheet Analysis - Allowance for Credit Losses on Loans and Leases Held for Investment ” contained herein.

Noninterest Income

The following table summarizes noninterest income by category for the periods indicated:


	Three Months Ended
	March 31,		December 31,		March 31,
Noninterest Income	2025		2024		2024
	(In thousands)
Leased equipment income	$	10,784	$	10,730	$	11,716
Other commissions and fees	9,958		8,231		8,142
Service charges on deposit accounts	4,543		4,770		4,705
Gain (loss) on sale of loans and leases	211		20		(448)
Loss on sale of securities	—		(454)		—
Dividends and gains on equity investments	2,323		18		3,068
Warrant (loss) income	(295)		343		178
LOCOM HFS adjustment	—		(3)		330
Other	6,126		5,334		6,125
Total noninterest income	$	33,650	$	28,989	$	33,816

First Quarter of 2025 Compared to Fourth Quarter of 2024

Noninterest income increased by $4.7 million to $33.7 million for the first quarter of 2025 from $29.0 million for the fourth quarter of 2024 due mainly to a $2.3 million increase in dividends and gains on equity investments, a $1.7 million increase in other commissions and fees, and a $0.8 million increase in other income. The increase in dividends and gains on equity investments was due to higher gains from SBIC investments. The increase in other commissions and fees was due to higher loan-related fee income and higher customer service fees. The increase in other income was mainly driven by a $0.7 million increase in the fair value mark on credit-linked notes.

First Quarter of 2025 Compared to First Quarter of 2024

Noninterest income decreased by $0.2 million to $33.7 million for the first quarter of 2025 compared to $33.8 million for the first quarter of 2024 due mainly to a $0.9 million decrease in leased equipment income, a $0.7 million decrease in dividends and gains on equity investments, and a $0.5 million decrease in warrant income, offset partially by a $1.8 million increase in other commissions and fees, and a $0.7 million higher gain on sale of loans and leases. The decrease in leased equipment income reflected lower overall activity, partially offset by a higher gain from early lease terminations. Dividends and gains on equity investments also declined, largely driven by lower gains and income from SBIC investments and a loss recorded on HLBV investments in the first quarter of 2025. In addition, warrant income declined due to a loss from warrant revaluation in the first quarter of 2025 compared to a gain from warrant in the first quarter of 2024. These decreases were partially offset by an increase in other commissions and fees, which benefited from higher loan-related fee income due to higher loan volume, as well as higher customer service fees driven by increased activity. Gain on sale of loans and leases increased compared to the first quarter of 2024, which included a loss recognized from the sale of the lender finance loan portfolio.

Noninterest Expense

The following table summarizes noninterest expense by category for the periods indicated:


	Three Months Ended
	March 31,		December 31,		March 31,
Noninterest Expense	2025		2024		2024
	(In thousands)
Compensation	$	86,417	$	77,661	$	92,236
Customer related expense	27,751		31,672		30,919
Information technology and data processing	15,099		14,546		15,418
Occupancy	15,010		15,678		17,968
Insurance and assessments	7,283		11,179		20,461
Intangible asset amortization	7,160		7,770		8,404
Leased equipment depreciation	6,741		7,096		7,520
Other professional services	4,513		5,498		5,075
Loan expense	2,930		4,489		4,491
Other	10,749		6,804		8,026
Total operating expense	183,653		182,393		210,518
Acquisition, integration and reorganization costs	—		(1,023)		—

Total noninterest expense	$	183,653	$	181,370	$	210,518

First Quarter of 2025 Compared to Fourth Quarter of 2024

Noninterest expense increased by $2.3 million to $183.7 million for the first quarter of 2025 from $181.4 million for the fourth quarter of 2024 due mainly to increases of $8.8 million in compensation expenses and $3.9 million in other expenses, offset partially by decreases of $3.9 million in customer related expense, $3.9 million in insurance and assessments expenses, and $1.6 million in loan expense. The increase in compensation was primarily due to seasonality as resets of accruals for incentive compensation, payroll taxes, and benefits occur during the first quarter of the year. The increase in other expenses was primarily due to higher donations including a $1.0 million donation to the Banc of California Wildfire Relief and Recovery Fund. The decrease in customer related expense was driven by lower ECR expenses related to the HOA Business which were impacted by the lower federal funds rate. The decrease in insurance and assessments expense was mainly due to a lower FDIC assessment and FDIC expense true-ups. The decrease in loan expenses was mostly attributable to lower legal fees driven by higher recoveries in the first quarter.

First Quarter of 2025 Compared to First Quarter of 2024

Noninterest expense decreased by $26.9 million to $183.7 million for the three months ended March 31, 2025 compared to $210.5 million for the three months ended March 31, 2024 due mainly t o decreases of $13.2 million in insurance and assessments, $5.8 million in compensation, $3.2 million in customer related expense, $3.0 million in occupancy, and $1.6 million in loan expenses. The decrease in insurance and assessments was primarily due to incremental FDIC special assessments recorded in the first quarter of 2024, resulting from higher assessment rates. Compensation expense decreased mainly due to lower headcount. Customer related expense decreased due to lower ECR expenses which were impacted by the lower federal funds rate. Occupancy expenses were also lower reflecting cost savings from branch consolidations following the merger. Loan expenses decreased largely due to lower loan servicing costs primarily as a result of the Civic loan sale completed in the third quarter of 2024.

Income Taxes

First Quarter of 2025 Compared to Fourth Quarter of 2024

Income tax expense of $19.5 million was recorded for the first quarter of 2025 resulting in an effective tax rate of 26.7% compared to income tax expense of $13.2 million for the fourth quarter of 2024 and an effective tax rate of 18.8%. The lower fourth quarter effective tax rate was due primarily to tax benefits resulting from recording deferred tax assets at higher state tax rates.

First Quarter of 2025 Compared to First Quarter of 2024

Income tax expense of $19.5 million was recorded for the first quarter of 2025 resulting in an effective tax rate of 26.7% compared to income tax expense of $11.5 million for the first quarter of 2024 and an effective tax rate of 27.2%. The lower effective tax rate in the first quarter of 2025 was primarily attributable to lower disallowed FDIC insurance premium deduction.

Balance Sheet Analysis

The following table provides a summary of our balance sheet highlights as of the dates indicated:


	March 31,		December 31,		Increase
Balance Sheet Highlights	2025		2024		(Decrease)
	(In thousands)
Cash and cash equivalents	$	2,343,889	$	2,502,212	$	(158,323)
Securities available-for-sale	2,334,058		2,246,839		87,219
Securities held-to-maturity	2,311,912		2,306,149		5,763
Loans held for sale	25,797		26,331		(534)
Loans and leases held for investment	24,126,527		23,781,663		344,864
Total assets	33,779,918		33,542,864		237,054

Noninterest-bearing deposits	$	7,593,950	$	7,719,913	$	(125,963)
Total deposits	27,193,191		27,191,909		1,282
Borrowings	1,670,782		1,391,814		278,968
Subordinated debt	944,908		941,923		2,985
Total liabilities	30,258,262		30,042,915		215,347
Total stockholders' equity	3,521,656		3,499,949		21,707

Cash and Cash Equivalents

Cash and cash equivalents decreased by $158.3 million during the first quarter of 2025 to $2.3 billion at March 31, 2025 compared to $2.5 billion at December 31, 2024, primarily reflecting a lower cash target level being maintained during the quarter.

Securities Available-for-Sale

The following table presents the composition and durations of our AFS securities as of the dates indicated:


	March 31, 2025					December 31, 2024
	Fair		% of		Duration	Fair		% of		Duration
Security Type	Value		Total		(in years)	Value		Total		(in years)
	(Dollars in thousands)
Agency residential MBS	$	867,042	37	%	7.8	$	861,840	38	%	7.6
Agency residential CMOs	565,068		24	%	2.8	446,631		20	%	3.2
Private label residential CMOs	303,327		13	%	4.1	316,910		14	%	3.9
Collateralized loan obligations	242,885		10	%	—	279,416		12	%	0.3
Corporate debt securities	263,403		11	%	1.2	257,712		12	%	1.4
Agency commercial MBS	61,204		3	%	1.6	51,564		2	%	1.9
Asset-backed securities	15,224		1	%	0.1	15,600		1	%	0.1
Private label commercial MBS	11,446		1	%	3.5	12,372		1	%	3.6
SBA securities	3,862		—	%	3.3	4,200		—	%	3.2
Municipal securities	597		—	%	0.9	594		—	%	3.7

Total securities available-for-sale	$	2,334,058	100	%	4.3	$	2,246,839	100	%	4.4

AFS securities increased by $87.2 million during the first quarter of 2025 to $2.3 billion at March 31, 2025 compared to $2.2 billion at December 31, 2024. The increase was primarily driven by purchases of $148.5 million and a $38.5 million increase in the fair value of AFS securities due to higher interest rates, partially offset by $97.9 million of principal paydowns and $1.9 million of net amortization. As principal paydowns occurred, we reinvested in higher-yield securities to enhance our investment yield.

As of March 31, 2025, AFS securities had aggregate unrealized net after-tax losses in AOCI of $172.5 million compared to $200.1 million at December 31, 2024.

Securities Held-to-Maturity

The following table presents the composition and duration of our HTM securities as of the dates indicated:


	March 31, 2025					December 31, 2024
	Amortized		% of		Duration	Amortized		% of		Duration
Security Type	Cost		Total		(in years)	Cost		Total		(in years)
	(Dollars in thousands)

Municipal securities	$	1,252,455	55	%	8.2	$	1,251,364	55	%	8.0
Agency commercial MBS	442,172		19	%	5.7	440,476		19	%	5.9
Private label commercial MBS	356,586		15	%	5.4	355,342		15	%	5.6
U.S. Treasury securities	190,726		8	%	5.7	189,985		8	%	5.9
Corporate debt securities	70,573		3	%	4.4	70,482		3	%	4.0




Total securities held-to-maturity	$	2,312,512	100	%	7.0	$	2,307,649	100	%	7.0

HTM securities increased by $5.8 million in the first quarter to $2.3 billion at March 31, 2025 compared to $2.3 billion at December 31, 2024. The increase was primarily due to the accretion of $8.3 million of the remaining unrealized losses balance deferred in other comprehensive income ("OCI") from a prior transfer of securities from AFS to HTM on June 1, 2022, and the release of $0.9 million in credit loss reserve, partially offset by $3.2 million of net amortization and $0.3 million of principal paydowns.

As of March 31, 2025, HTM securities had aggregate unrealized net after-tax losses in AOCI of $151.9 million remaining from the balance established at the time of the AFS to HTM transfer, compared to $157.9 million at December 31, 2024.

The following table shows the geographic composition of the majority of our HTM municipal securities portfolio as of the date indicated:


	March 31, 2025
	Amortized		% of
Municipal Securities by State	Cost		Total
	(Dollars in thousands)
California	$	314,235	25	%
Texas	277,718		22	%
Washington	188,396		15	%
Oregon	80,261		6	%
Maryland	64,278		5	%
Georgia	55,314		4	%
Colorado	48,578		4	%
Minnesota	34,719		3	%
Tennessee	31,075		3	%
Florida	21,954		2	%
Total of ten largest states	1,116,528		89	%
All other states	135,927		11	%
Total municipal securities held-to-maturity	$	1,252,455	100	%

Loans and Leases Held for Investment

The following table presents the composition of our loans and leases held for investment by loan portfolio segment, class, and subclass as of the dates indicated:


	March 31, 2025				December 31, 2024
			% of				% of
Loan and Lease Portfolio	Balance		Total		Balance		Total
	(Dollars in thousands)
Real Estate Mortgage:
Commercial real estate	$	3,451,440	14	%	$	3,540,612	15	%
SBA program	630,071		3	%	630,412		2	%
Hotel	408,032		2	%	407,748		2	%
Total commercial real estate mortgage	4,489,543		19	%	4,578,772		19	%
Multi-family	6,216,084		26	%	6,041,713		26	%
Residential mortgage	2,684,213		11	%	2,682,667		11	%
Investor-owned residential	86,672		—	%	102,778		1	%
Residential renovation	16,146		—	%	21,729		—	%
Total other residential real estate	2,787,031		11	%	2,807,174		12	%
Total real estate mortgage	13,492,658		56	%	13,427,659		57	%
Real Estate Construction and Land:
Commercial	733,684		3	%	799,131		3	%
Residential	2,127,354		9	%	2,373,162		10	%
Total real estate construction and land (1)	2,861,038		12	%	3,172,293		13	%
Total real estate	16,353,696		68	%	16,599,952		70	%
Commercial:
Lender finance	954,294		4	%	727,913		3	%
Equipment finance	626,020		2	%	621,888		3	%
Premium finance	517,761		2	%	546,393		2	%
Other asset-based	207,250		1	%	191,775		1	%
Total asset-based	2,305,325		9	%	2,087,969		9	%
Equity fund loans	955,981		4	%	746,655		3	%
Venture lending	777,093		3	%	791,121		3	%
Total venture capital	1,733,074		7	%	1,537,776		6	%
Secured business loans	816,196		3	%	756,612		3	%
Warehouse lending	1,601,143		7	%	1,473,074		6	%
Other lending	923,061		4	%	923,398		4	%
Total other commercial	3,340,400		14	%	3,153,084		13	%
Total commercial	7,378,799		30	%	6,778,829		28	%
Consumer	394,032		2	%	402,882		2	%
Total loans and leases held for investment	$	24,126,527	100	%	$	23,781,663	100	%

Total unfunded loan commitments	$	4,858,960			$	4,887,690

________________________________

(1) Includes land and acquisition and development loans of $221.4 million at March 31, 2025 and $223.9 million at December 31, 2024.

Total loans and leases held for investment increased by $344.9 million in the first quarter and totaled $24.1 billion at March 31, 2025 compared to $23.8 billion at December 31, 2024. The increase in loans and leases held for investment was due primarily to increased balances in the asset-based, venture capital, other commercial, and multi-family loan portfolios, offset partially by a decrease in the real estate construction and land loan segment, and the commercial real estate mortgage and other residential real estate mortgage loan portfolios. Loan originations including production, purchased loans, and unfunded new commitments were $2.6 billion in the first quarter, most of which onboarded towards the end of the quarter, with a weighted average interest rate on production of 7.20%.

The following table presents the geographic composition of our real estate loans held for investment by the top 10 states and all other states combined (in the order presented for the current quarter-end) as of the dates indicated:


	March 31, 2025				December 31, 2024
			% of				% of
Real Estate Loans by State	Balance		Total		Balance		Total
	(Dollars in thousands)
California	$	11,556,371	71	%	$	11,722,323	71	%
Colorado	1,162,155		7	%	1,224,295		7	%
Arizona	574,955		4	%	540,726		3	%
Texas	540,773		3	%	542,312		3	%
Florida	432,305		3	%	437,987		3	%
Nevada	390,585		2	%	388,627		2	%
Washington	386,025		2	%	393,584		2	%
Oregon	296,754		2	%	307,088		2	%
Utah	144,705		1	%	147,205		1	%
Illinois	105,845		—	%	106,463		1	%
Total of 10 largest states	15,590,473		95	%	15,810,610		95	%
All other states	763,223		5	%	789,342		5	%
Total real estate loans held for investment	$	16,353,696	100	%	$	16,599,952	100	%

At March 31, 2025 and December 31, 2024, 71% and 71% of our real estate loans were collateralized by property located in California because our full-service branches and our community banking activities are primarily located in California.

When considering the markets in which to pursue real estate loans, we consider the market conditions, our current loan portfolio concentrations by property type and by market, and our past experiences with the borrower, within the specific market, and with the property type.

When underwriting real estate loans, we seek to mitigate risk by using the following framework:

• requiring borrowers to invest and maintain a meaningful cash equity interest in the properties securing our loans;

• reviewing each loan request and renewal individually;

• using a credit committee approval process for the approval of loan requests (or aggregated credit exposures) over a certain dollar amount;

• adhering to written loan acceptance standards, including among other factors, maximum loan to acquisition or construction cost ratios, maximum loan to as-is or stabilized value ratios, and minimum operating cash flow requirements;

• considering market rental and occupancy rates relative to our underwritten or projected rental and occupancy rates;

• considering the experience of our borrowers and our borrowers’ abilities to operate and manage the properties securing our loans;

• evaluating the supply of comparable real estate and new supply under construction in the collateral's market area;

• obtaining independent third-party appraisals that are reviewed by our appraisal department;

• obtaining environmental risk assessments; and

• obtaining seismic studies where appropriate.

The following table presents a roll forward of loans and leases held for investment for the period indicated:


	Three Months Ended
Roll Forward of Loans and Leases Held for Investment	March 31, 2025
	(In thousands)
Balance, beginning of period	$	23,781,663
Additions:
Production	923,890
Disbursements	2,986,024
Total production and disbursements	3,909,914
Reductions:
Payoffs	(2,690,992)
Paydowns	(855,063)
Total payoffs and paydowns	(3,546,055)
Sales	(1,090)
Transfers to foreclosed assets	(1,354)
Charge-offs	(16,551)

Total reductions	(3,565,050)


Net increase	344,864
Balance, end of period	$	24,126,527

Allowance for Credit Losses on Loans and Leases Held for Investment

The ACL on loans and leases held for investment is the combination of the ALLL and the reserve for unfunded loan commitments. The ALLL is reported as a reduction of the amortized cost basis of loans and leases, while the reserve for unfunded loan commitments is included within "Accrued interest payable and other liabilities" on the condensed consolidated balance sheets. The amortized cost basis of loans and leases does not include accrued interest receivable, which is included in "Other assets" on the condensed consolidated balance sheets. The "Provision for credit losses" on the condensed consolidated statement of earnings is a combination of the provision for loan and lease losses, the provision for unfunded loan commitments, the provision for AFS debt securities, and the provision for HTM debt securities.

Under the CECL methodology, expected credit losses reflect losses over the remaining contractual life of an asset, considering the effect of prepayments and available information about the collectability of cash flows, including information about relevant historical experience, current conditions, and reasonable and supportable forecasts of future events and circumstances. Thus, the CECL methodology incorporates a broad range of information in developing credit loss estimates.

For further information regarding the calculation of the ACL on loans and leases held for investment using the CECL methodology, see Note 1. Nature of Operations and Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements contained in "Item 8. Financial Statements and Supplementary Data" of our Form 10-K.

In calculating our ACL, we continued to consider higher inflation rates, the Federal Reserve's monetary policy, the risk of a recession, technical or otherwise, and the impact of various geopolitical risks on the economy in our process for estimating expected credit losses given the changes in economic forecasts and assumptions along with the uncertainty related to the severity and duration of the economic consequences resulting from such events. Our methodology and framework along with the 4-quarter reasonable and supportable forecast period and 2-quarter reversion period have remained consistent since the implementation of CECL on January 1, 2020. Certain management assumptions are reassessed every quarter based on current expectations for credit losses, while other assumptions are assessed and updated on at least an annual basis.

For the first quarter of 2025, we used the Moody’s March 31, 2025 Baseline and S2 Downside 75th Percentile for the calculation of our quantitative component. The weightings of the scenarios were based on management’s current expectations for the economic forecast, acknowledging the risk of recession over our reasonable and supportable forecast period and the current economic uncertainty.

The primary drivers behind higher quantitative reserves compared to the prior quarter were higher reserves due to risk rating migration. The increase in quantitative reserves was partially offset by changes in portfolio mix along with charge-off activity. The Company has successfully grown portfolios with lower risk of loss during the quarter, such as warehouse lending, fund finance and lender finance, while portfolios requiring higher reserves, such as commercial real estate, have lower overall balances.

As part of our ACL methodology, we consistently incorporate the use of qualitative factors in determining the overall ACL to capture risks that may not be appropriately reflected in our quantitative models. Such qualitative factors may include, but are not limited to: economic conditions not captured in in the quantitative reserve; collateral dependency related to certain loan portfolios including loans secured by office properties that were directly impacted by flexible/hybrid work environment; concentrations of credit within the loan portfolio including the commercial real estate portfolio; the quality of the Company’s credit review system; the volume and severity of adversely classified financial assets; the Company’s lending policies and procedures; and the effect of other external factors such as the regulatory and legal environments. During the first quarter of 2025, reserves associated with the qualitative adjustments decreased when compared to the prior quarter. Primary qualitative adjustments were related to loans secured by office properties and concentration of credit associated with commercial real estate loans, multi-family loans, and construction loans.

The use of different economic forecasts, whether based on different scenarios, the use of multiple or single scenarios, or updated economic forecasts and scenarios, can change the outcome of the calculations. In addition to the economic forecasts, there are numerous components and assumptions that are integral to the overall estimation of the ACL. As part of our ACL process, sensitivity analyses are performed to assess how changing certain assumptions could impact the estimated ACL. At times, these analyses can provide information to further assist management in making decisions related to certain assumptions. We calculated alternative values for our ACL using various alternative forecast scenarios weightings and the calculated amounts for the quantitative component differed from the probability-weighted multiple scenario forecast ranging from increasing the dollar amount of the quantitative component of the ACL by 1.74% to lower reserves by 5.22%. However, from a sensitivity analysis perspective, changing key assumptions such as the macro-economic variable inputs from the economic forecasts, the reasonable and supportable forecast period, prepayment rates, loan segmentation, historical loss factors and/or periods, among others, would all change the outcome of the quantitative components of the ACL. Those results would then need to be assessed from a qualitative perspective, potentially requiring further adjustments to the qualitative component to arrive at a reasonable and appropriate ACL.

The determination of the ACL is complex and highly dependent on numerous models, assumptions, and judgments made by management. Management's current expectation for credit losses on loans and leases held for investment as quantified in the ACL incorporates certain management assumptions and is reflective of historical credit experience, economic forecasts viewed to be reasonable and supportable, current loan and lease composition, and relative credit risks known as of the balance sheet date.

Management believes the ACL is appropriate for the current expected credit losses in our loan and lease portfolio and associated unfunded loan commitments, and the credit risk ratings and inherent loss rates currently assigned are reasonable and appropriate as of the reporting date. It is possible that others, given the same information, may at any point in time reach different conclusions that could result in a significant impact to the Company's financial statements.

The following table presents information regarding the ACL on loans and leases held for investment as of the dates indicated:


	March 31,			December 31,
Allowance for Credit Losses Data	2025			2024
	(Dollars in thousands)
Allowance for loan and lease losses	$	234,986		$	239,360
Reserve for unfunded loan commitments	29,571			29,071
Total allowance for credit losses	$	264,557		$	268,431

Allowance for loan and lease losses to loans and leases held for investment	0.97		%	1.01		%


Allowance for credit losses to loans and leases held for investment	1.10		%	1.13		%

The following table presents the changes in our ACL on loans and leases held for investment for the periods indicated:


	Three Months Ended
Roll Forward of Allowance for Credit Losses	March 31,			December 31,			March 31,
on Loans and Leases Held for Investment	2025			2024				2024
	(Dollars in thousands)
Balance, beginning of period	$	268,431		$	281,916			$	311,258

Provision for credit losses:

Addition to allowance for loan and lease losses	9,700			11,500				11,000

Addition to (reduction in) reserve for unfunded loan commitments	500			1,500				(1,000)
Total provision for credit losses	10,200			13,000				10,000
Loans and leases charged off:
Real estate mortgage	(5,789)			(6,119)				(2,477)
Real estate construction and land	—			—				—
Commercial	(9,582)			(20,507)				(704)
Consumer	(1,180)			(1,070)				(1,833)
Total loans and leases charged off	(16,551)			(27,696)				(5,014)
Recoveries on loans and leases charged off:
Real estate mortgage	312			230				891
Real estate construction and land	—			—				—
Commercial	2,103			755				2,869
Consumer	62			226				70
Total recoveries on loans and leases charged off	2,477			1,211				3,830
Net charge-offs	(14,074)			(26,485)				(1,184)
Balance, end of period	$	264,557		$	268,431			$	320,074

Annualized net charge-offs to
average loans and leases	0.24		%	0.45		%		0.02		%

The following table presents charge-offs by loan portfolio segment, class, and subclass for the periods indicated:


	Three Months Ended
	March 31,		December 31,		March 31,
Allowance for Credit Losses Charge-offs	2025		2024			2024
	(In thousands)
Real Estate Mortgage:
Commercial real estate	$	4,701	$	2,065		$	—
SBA program	306		228			37
Hotel	—		—			—
Total commercial real estate mortgage	5,007		2,293			37
Multi-family	—		—			—
Residential mortgage	129		175			—
Investor-owned residential	526		3,585			1,520
Residential renovation	127		66			920
Total other residential real estate	782		3,826			2,440
Total real estate mortgage	5,789		6,119			2,477
Real Estate Construction and Land:
Commercial	—		—			—
Residential	—		—			—
Total real estate construction and land	—		—			—
Total real estate	5,789		6,119			2,477
Commercial:
Lender finance	—		—			—
Equipment finance	—		—			—
Premium finance	—		—			—
Other asset-based	—		—			—
Total asset-based	—		—			—
Equity fund loans	—		—			—
Venture lending	5,121		14,000			141
Total venture capital	5,121		14,000			141
Secured business loans	524		3,547			211
Warehouse lending	—		—			—
Other lending	3,937		2,960			352
Total other commercial	4,461		6,507			563
Total commercial	9,582		20,507			704
Consumer	1,180		1,070			1,833
Total charge-offs	$	16,551	$	27,696		$	5,014

The following table presents recoveries by portfolio segment, class, and subclass for the periods indicated:


	Three Months Ended
	March 31,		December 31,		March 31,
Allowance for Credit Losses Recoveries	2025		2024			2024
	(In thousands)
Real Estate Mortgage:
Commercial real estate	$	78	$	—		$	243
SBA program	162		224			101
Hotel	—		—			—
Total commercial real estate mortgage	240		224			344
Multi-family	—		—			—
Residential mortgage	11		3			1
Investor-owned residential	—		3			301
Residential renovation	61		—			245
Total other residential real estate	72		6			547
Total real estate mortgage	312		230			891
Real Estate Construction and Land:
Commercial	—		—			—
Residential	—		—			—
Total real estate construction and land	—		—			—
Total real estate	312		230			891
Commercial:
Lender finance	—		—			—
Equipment finance	—		—			—
Premium finance	4		—			—
Other asset-based	—		—			—
Total asset-based	4		—			—
Equity fund loans	—		—			—
Venture lending	50		230			357
Total venture capital	50		230			357
Secured business loans	301		164			263
Warehouse lending	—		—			—
Other lending	1,748		361			2,249
Total other commercial	2,049		525			2,512
Total commercial	2,103		755			2,869
Consumer	62		226			70
Total recoveries	$	2,477	$	1,211		$	3,830

Credit Quality

The overall quality of our loan portfolio remains strong, supported by disciplined underwriting, borrower strength, and robust credit metrics. In light of the current economic uncertainty, we enhanced our credit monitoring process to more proactively manage potential risks. In the first quarter of 2025, credit downgrades were primarily driven by rate-sensitive loans, although these loans are well-collateralized with low loan-to-value ("LTV") ratios that we believe mitigate the risk of potential losses.

Nonperforming Assets, Classified Loans and Leases, and Special Mention Loans and Leases

The following table presents information on our nonperforming assets, classified loans and leases, and special mention loans and leases as of the dates indicated:


	March 31,			December 31,
	2025			2024
	(Dollars in thousands)
Nonaccrual loans and leases held for investment	$	213,480		$	189,605
Accruing loans contractually past due 90 days or more	—			—
Total nonperforming loans and leases	213,480			189,605
Foreclosed assets, net	5,474			9,734
Total nonperforming assets	$	218,954		$	199,339

Classified loans and leases held for investment	$	764,723		$	563,502
Special mention loans and leases held for investment	$	937,014		$	1,097,315
Nonaccrual loans and leases held for investment to loans and leases held for investment	0.88		%	0.80		%
Nonperforming assets to loans and leases held for investment and foreclosed assets, net	0.91		%	0.84		%
Allowance for credit losses to nonaccrual loans and leases held for investment	123.9		%	141.6		%
Classified loans and leases held for investment to loans and leases held for investment	3.17		%	2.37		%
Special mention loans and leases held for investment to loans and leases held for investment	3.88		%	4.61		%

Nonaccrual Loans and Leases Held for Investment

The following table presents our nonaccrual loans and leases held for investment and accruing loans and leases past due between 30 and 89 days by loan portfolio segment and class as of the dates indicated:


	March 31, 2025				December 31, 2024				Increase (Decrease)
			Accruing				Accruing				Accruing
			and 30-89				and 30-89				and 30-89
			Days Past				Days Past				Days Past
	Nonaccrual		Due		Nonaccrual		Due		Nonaccrual		Due
	(In thousands)
Real estate mortgage:
Commercial	$	131,595	$	16,266	$	97,655	$	—	$	33,940	$	16,266
Multi-family	22,614		1,796		22,763		9,442		(149)		(7,646)
Other residential	44,739		35,734		46,788		34,417		(2,049)		1,317
Total real estate mortgage	198,948		53,796		167,206		43,859		31,742		9,937
Real estate construction and land:
Commercial	—		—		—		—		—		—
Residential	—		—		—		—		—		—
Total real estate construction and land	—		—		—		—		—		—
Commercial:
Asset-based	3,640		173		1,940		1,795		1,700		(1,622)
Venture capital	163		—		6,291		—		(6,128)		—
Other commercial	9,737		1,954		13,544		2,331		(3,807)		(377)
Total commercial	13,540		2,127		21,775		4,126		(8,235)		(1,999)
Consumer	992		2,076		624		2,804		368		(728)
Total held for investment	$	213,480	$	57,999	$	189,605	$	50,789	$	23,875	$	7,210

During the three months ended March 31, 2025, nonperforming loan and leases held for investment incr eased by $23.9 million to $213.5 million at March 31, 2025 compared to $189.6 million at December 31, 2024, due mainly to additions of $67.8 million, offset par tially by principal and other reductions of $30.8 million , charge-offs of $12.6 million, and tr ansfers to accrual status of $0.5 million. The additions to nonperforming loans and leases were largely related to one commercial real estate loan which is full recourse to the guarantor and we believe has adequate collateral coverage. As of March 31, 2025, the Company's three largest loan relationships on nonaccrual status had an aggregate carrying value of $73.9 million and represented 35% of total nonaccrual loans and leases.

Loans and leases accruing 30-89 days past due increased by $7.2 million to $58.0 million as of March 31, 2025 compared to $50.8 million at December 31, 2024, due mainly to increases of $16.3 million in commercial real estate mortgage delinquent loans, offset partially by a decrease of $7.6 million in multi-family real estate mortgage delinquent loans.

Foreclosed Assets, Net

The following table presents foreclosed assets (primarily OREO), net of the valuation allowance, by property type as of the dates indicated:


	March 31,		December 31,
Property Type	2025		2024
	(In thousands)

Single-family residential	$	5,454	$	9,714


Total OREO, net	5,454		9,714
Other foreclosed assets	20		20
Total foreclosed assets, net	$	5,474	$	9,734

During the three months ended March 31, 2025, foreclosed assets decreased by $4.3 million to $5.5 million at March 31, 2025 compared to $9.7 million at December 31, 2024, due mainly to sales of $5.3 million and a decrease in the provision for losses of $0.3 million, offset partially by transfers from loans of $1.4 million.

Classified and Special Mention Loans and Leases Held for Investment

The following table presents the credit risk ratings of our loans and leases held for investment as of the dates indicated:


	March 31,		December 31,
Loan and Lease Credit Risk Ratings	2025		2024
	(In thousands)
Pass	$	22,424,790	$	22,120,846
Special mention	937,014		1,097,315
Classified	764,723		563,502
Total loans and leases held for investment	$	24,126,527	$	23,781,663

Classified and special mention loans and leases fluctuate from period to period as a result of loan repayments and downgrades or upgrades from our ongoing active portfolio management.

The following table presents the classified and special mention credit risk rating categories for loans and leases held for investment by loan portfolio segment and class and the related net changes as of the dates indicated:


	March 31, 2025				December 31, 2024				Increase (Decrease)
			Special				Special				Special
	Classified		Mention		Classified		Mention		Classified		Mention
	(In thousands)
Real estate mortgage:
Commercial	$	317,427	$	300,298	$	301,278	$	348,014	$	16,149	$	(47,716)
Multi-family	216,093		149,159		113,164		202,690		102,929		(53,531)
Other residential	44,757		1,260		47,993		14,351		(3,236)		(13,091)
Total real estate mortgage	578,277		450,717		462,435		565,055		115,842		(114,338)
Real estate construction and land:
Commercial	69,324		224,152		—		148,024		69,324		76,128
Residential	3,120		39,730		—		203,220		3,120		(163,490)
Total real estate construction and land	72,444		263,882		—		351,244		72,444		(87,362)
Commercial:
Asset-based	3,640		37,746		5,003		9,547		(1,363)		28,199
Venture capital	84,412		153,942		75,406		125,320		9,006		28,622
Other commercial	24,676		25,489		19,949		38,741		4,727		(13,252)
Total commercial	112,728		217,177		100,358		173,608		12,370		43,569
Consumer	1,274		5,238		709		7,408		565		(2,170)
Total	$	764,723	$	937,014	$	563,502	$	1,097,315	$	201,221	$	(160,301)

During the three months ended March 31, 2025, classified loans and leases increased by $201.2 million to $764.7 million at March 31, 2025 compared to $563.5 million at December 31, 2024, due mainly to increases of $102.9 million in multi-family real estate mortgage classified loans, $69.3 million in commercial real estate construction and land classified loans, and $16.1 million in commercial real estate mortgage classified loans . Increases in the multi-family real estate mortgage classified loans were largely driven by migration of rate-sensitive loans, all of which remain current, maintain strong collateral values, and are located in attractive locations in California.

During the three months ended March 31, 2025 , special mention loans and leases decreased by $160.3 million to $937.0 million at March 31, 2025 compared to $1.1 billion at December 31, 2024, due mainly to decreases o f 163.5 million in residential real estate construction and land special mention loans, $53.5 million in multi-family real estate mortgage special mention loans , and $47.7 million in commercial real estate mortgage special mention loans, offset partially by increases of $76.1 million in commercial real estate construction and land special mention loans and $28.6 million in venture capital special mention loans.

Deposits

The following table presents the composition of our deposit portfolio by account type as of the dates indicated:


	March 31, 2025				December 31, 2024
			% of				% of		Increase
Deposit Type	Balance		Total		Balance		Total		(Decrease)
	(Dollars in thousands)
Noninterest-bearing checking	$	7,593,950	28	%	$	7,719,913	28	%	$	(125,963)
Interest-bearing:
Checking	7,747,051		29	%	7,610,705		28	%	136,346
Money market	5,367,788		20	%	5,361,635		20	%	6,153
Savings	1,999,062		7	%	1,933,232		7	%	65,830
Time:
Non-brokered	2,490,639		9	%	2,488,217		9	%	2,422
Brokered	1,994,701		7	%	2,078,207		8	%	(83,506)
Total time deposits	4,485,340		16	%	4,566,424		17	%	(81,084)
Total interest-bearing	19,599,241		72	%	19,471,996		72	%	127,245
Total deposits	$	27,193,191	100	%	$	27,191,909	100	%	$	1,282

The following table presents time deposits based on the $250,000 FDIC insured limit as of the dates indicated:


	March 31, 2025				December 31, 2024
			% of				% of
			Total				Total
Time Deposits	Balance		Deposits		Balance		Deposits
	(Dollars in thousands)
Time deposits $250,000 and under	$	3,384,127	12	%	$	3,468,376	13	%
Time deposits over $250,000	1,101,213		4	%	1,098,048		4	%
Total time deposits	$	4,485,340	16	%	$	4,566,424	17	%

Total deposits remained stable at $27.2 billion at March 31, 2025 and December 31, 2024. The slight increase of $1.3 million in total deposits during the first quarter of 2025 was due primarily to increases of $136.3 million in checking accounts and $65.8 million in savings accounts, offset partially by decreases of $126.0 million in noninterest-bearing checking accounts and $83.5 million in brokered time deposits. At March 31, 2025, noninterest-bearing deposits totaled $7.6 billion , or 28% , of total deposits and interest-bearing deposits totaled $19.6 billion , or 72% , of total deposits, compared to noninterest-bearing deposits of $7.7 billion, or 28% of total deposits and interest-bearing deposits of $19.5 billion, or 72% of total deposits at December 31, 2024.

As of March 31, 2025, FDIC-insured deposits represented approximately 70% of total deposits, including accounts eligible for pass-through insurance, down from 72% as of December 31, 2024. Available liquidity (on-balance sheet liquidity plus unused borrowing capacity and unpledged AFS securities) was $15.1 billion at March 31, 2025, which exceeded uninsured and uncollateralized deposits of $7.4 billion , with a coverage ratio of 205% as compared to a coverage ratio of 221% at December 31, 2024. Available liquidity also represente d 56% of total deposits at March 31, 2025.

The following table summarizes the maturities of time deposits as of the date indicated:


	Time Deposits
	$250,000		Over
March 31, 2025	and Under		$250,000		Total
	(In thousands)
Maturities:
Due in three months or less	$	974,382	$	191,101	$	1,165,483
Due in over three months through six months	789,104		461,613		1,250,717
Due in over six months through 12 months	1,003,556		375,238		1,378,794
Total due within 12 months	2,767,042		1,027,952		3,794,994
Due in over 12 months through 24 months	612,597		66,652		679,249
Due in over 24 months	4,488		6,609		11,097
Total due over twelve months	617,085		73,261		690,346
Total	$	3,384,127	$	1,101,213	$	4,485,340

Client Investment Funds

In addition to deposit products, we also offer select clients non-depository cash investment options through BAM, our registered investment adviser subsidiary, and third-party money market sweep products. BAM provides customized investment advisory and asset management solutions. At March 31, 2025, total off-balance sheet client investment funds were $1.6 billion , of which $0.8 billion was managed by BAM. At December 31, 2024, total off-balance sheet client investment funds were $1.5 billion, of which $0.7 billion was managed by BAM.

Borrowings

The following table summarizes our borrowings as of the dates indicated:


	March 31, 2025				December 31, 2024
			Weighted				Weighted
			Average				Average
	Balance		Rate		Balance		Rate
	(Dollars in thousands)
FHLB secured advances	$	1,379,842	4.07	%	$	1,100,000	3.93	%


Senior Notes	174,000		5.25	%	174,000		5.25	%
Credit-linked notes	117,196		15.07	%	118,838		15.29	%




Total borrowings	1,671,038		4.96	%	1,392,838		5.06	%
Acquisition discount on senior notes	(256)				(1,024)
Total borrowings, net (1)	$	1,670,782			$	1,391,814

___________________

(1) All borrowings were held at the Bank level with the exception of the 5.25% Senior Notes due April 2025 ("Senior Notes"), which were issued at the holding company level.

Borrowings increased by $279.0 million to $1.7 billion at March 31, 2025 compared to $1.4 billion at December 31, 2024 due to higher short-term borrowings. We utilized short-term borrowings to manage liquidity needs, including, but not limited to, accommodating liability maturities and deposit withdrawals, funding asset growth, and supporting business operations.

Subordinated Debt

As of March 31, 2025, the carrying value of subordinated debt totaled $944.9 million compared to $941.9 million at December 31, 2024. The increase was mainly driven by the accretion of the acquisition discount on acquired subordinated debt and higher valuation of the Euribor-based subordinated debt. At March 31, 2025, $131.0 million was included in the Company's Tier I capital and $798.9 million was included in Tier II capital.

Regulatory Matters

Capital

Bank regulatory agencies measure capital adequacy through standardized risk-based capital guidelines that compare different levels of capital (as defined by such guidelines) to risk-weighted assets and off-balance sheet obligations. At March 31, 2025, banks considered to be “well capitalized” must maintain a minimum Tier 1 leverage ratio of 5.00%, a minimum common equity Tier 1 capital ratio of 6.50%, a minimum Tier 1 capital ratio of 8.00%, and a minimum Total capital ratio of 10.00%.

Regulatory capital requirements limit the amount of DTAs that may be included when determining the amount of regulatory capital. Deferred tax asset amounts in excess of the calculated limit are disallowed from regulatory capital. At March 31, 2025, such disallowed amounts were $309.5 million for the Company and none for the Bank. No assurance can be given that the regulatory capital deferred tax asset limitation will not increase in the future or that the Company and the Bank will not have increased DTAs that are disallowed.

In 2020, the federal bank regulatory authorities approved a rule that delays the estimated impact on regulatory capital resulting from the adoption of CECL. We elected the CECL phase-in option provided by regulatory capital rules which delayed for two years the estimated impact of CECL on regulatory capital and phases it in over a three-year transition period beginning in the first quarter of 2022. The full impact of the CECL standard was phased-in to regulatory capital through December 31, 2024 under this phase-in option, and in the first quarter of 2025, CECL was fully reflected in our regulatory capital.

Basel III currently requires all banking organizations to maintain a 2.50% capital conservation buffer above the minimum risk-based capital requirements to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively comprised of common equity Tier 1 capital, and it applies to each of the three risk-based capital ratios but not to the leverage ratio. Effective January 1, 2019, the common equity Tier 1, Tier 1, and Total capital ratio minimums inclusive of the capital conservation buffer were 7.00%, 8.50%, and 10.50%. At March 31, 2025, the Company and the Bank were in compliance with the capital conservation buffer requirements.

The following tables present a comparison of our actual capital ratios to the minimum required ratios and well capitalized ratios as of the dates indicated:


			Minimum Required
			For Capital	For Capital	For Well
	March 31,	December 31,	Adequacy	Conservation	Capitalized
	2025	2024	Purposes	Buffer	Classification
Banc of California, Inc.:
Tier 1 leverage capital ratio	10.19%	10.15%	4.00%	N/A	N/A
CET1 capital ratio	10.45%	10.55%	4.50%	7.00%	N/A
Tier 1 capital ratio	12.86%	12.97%	6.00%	8.50%	N/A
Total capital ratio	16.93%	17.05%	8.00%	10.50%	N/A

Banc of California:
Tier 1 leverage capital ratio	10.88%	11.08%	4.00%	N/A	5.00%
CET1 capital ratio	13.74%	14.17%	4.50%	7.00%	6.50%
Tier 1 capital ratio	13.74%	14.17%	6.00%	8.50%	8.00%
Total capital ratio	16.22%	16.65%	8.00%	10.50%	10.00%

The Company's consolidated risk-based capital ratios decreased during the three months ended March 31, 2025 due mainly to the impact of stock repurchase, lower net earnings, and an increase in risk-weighted assets mostly driven by the growth in loan balances. The consolidated Tier 1 leverage ratio increased during the three months ended March 31, 2025 due mainly to lower average assets.

Dividends on Common Stock and Interest on Subordinated Debt

As a bank holding company, Banc of California, Inc. is required to notify and receive approval from the FRB prior to declaring and paying a dividend to common stockholders during any period in which quarterly and/or cumulative twelve-month net earnings are insufficient to fund the dividend amount, among other requirements. Interest payments made on subordinated debt are considered dividend payments under FRB regulations. We may not pay a dividend if the FRB objects or until such time as we receive approval from the FRB or we no longer need to provide notice under applicable regulations. The Company currently is required to receive FRB approval to declare or pay a dividend to stockholders. Further, if the Company defaults or elects to defer the interest payments on its subordinated debt, it is restricted from paying dividends on its Series F preferred and common stock.

Dividends on Preferred Stock

The Company's ability to pay dividends on the Series F preferred stock depends on the ability of the Bank to pay dividends to the holding company. The ability of the Company and the Bank to pay dividends in the future is subject to bank regulatory requirements, including capital regulations and policies established by the FRB, and the DFPI, as applicable. Dividends on the Series F preferred stock will not be declared, paid, or set aside for payment to the extent such act would cause us to fail to comply with applicable laws and regulations, including applicable FRB capital adequacy regulations and policies.

Dividends on the Series F preferred stock are not cumulative or mandatory. If the Company's Board of Directors does not declare a dividend on the Series F preferred stock in respect of a dividend period, then no dividend shall be deemed to be payable for such dividend period or be cumulative, and the Company will have no obligation to pay any dividend for that dividend period, whether or not the Board of Directors declares a dividend on the Series F preferred stock or any other class or series of its capital stock for any future dividend period. However, if dividends on the Series F preferred stock have not been declared or paid for the equivalent of six dividend payments, whether or not for consecutive dividend periods, holders of the outstanding shares of Series F preferred stock, together with holders of any other series of the Company's preferred stock ranking equal with the Series F preferred stock with similar voting rights, will generally be entitled to vote for the election of two additional directors. Additionally, so long as any share of Series F preferred stock remains outstanding, unless dividends on all outstanding shares of Series F preferred stock for the most recently completed dividend period have been paid in full or declared and a sum sufficient for the payment thereof has been set aside for payment, no dividend shall be declared or paid or set aside for payment and no distribution shall be declared or made or set aside for payment on the Company's common stock.

Liquidity

Liquidity Management

Liquidity is the ongoing ability to accommodate liability maturities and deposit withdrawals, fund asset growth and business operations, and meet contractual obligations through unconstrained access to funding at reasonable market rates. Liquidity management involves forecasting funding requirements and maintaining sufficient capacity to meet the needs and accommodate fluctuations in asset and liability levels due to changes in the Company’s business operations or unanticipated events.

We have a Management Finance Committee ("MFC") that is comprised of members of senior management and is responsible for managing commitments to meet the needs of customers while achieving our financial objectives. MFC meets regularly to review funding capacities, current and forecasted loan demand, and investment opportunities.

We manage our liquidity by maintaining pools of liquid assets on-balance sheet, consisting of cash and receivables due from banks, interest-earning deposits in other financial institutions, and unpledged AFS securities, which we refer to as our primary liquidity. We also maintain available borrowing capacity under secured credit lines with the FHLB and the FRBSF, which we refer to as our secondary liquidity.

As a member of the FHLB, the Bank had secured borrowing capacity with the FHLB of $6.9 billion at March 31, 2025, offset partially by $513.9 million pledged for letters of credit and a balance outstanding of $1.4 billion as of that date. The FHLB secured credit line was collateralized by a blanket lien on $10.5 billion of certain qualifying loans and $19.5 million of securities. The Bank also had secured borrowing capacity with the FRBSF under the Discount Window program totaling $5.8 billion at March 31, 2025, of which $5.8 billion was available. The FRBSF Discount Window secured credit line was collateralized by liens on $5.3 billion of qualifying loans and $1.5 billion of pledged securities.

In addition to its secured lines of credit with the FHLB and FRBSF, the Bank also maintains unsecured lines of credit for the purpose of borrowing overnight funds, subject to availability, of $265.0 million in the aggregate with several correspondent banks. As of March 31, 2025, there was no balance outstanding related to these unsecured lines of credit. The Bank is a member of the AFX, through which it may either borrow or lend funds on an overnight or short-term basis with a group of pre-approved commercial banks. The availability of funds changes daily. As of March 31, 2025, there was no outstanding balance through the AFX. Additionally, the holding company has a $100.0 million unsecured revolving line of credit. As of March 31, 2025, there was no balance outstanding.

The following tables provide a summary of the Company's primary and secondary liquidity levels at the dates indicated:


	March 31,			December 31,
Primary Liquidity - On-Balance Sheet	2025			2024
	(Dollars In thousands)
Cash and due from banks	$	215,591		$	192,006
Interest-earning deposits in financial institutions	2,128,298			2,310,206
Less: Restricted cash	(187,782)			(184,159)
Securities available-for-sale, at fair value	2,334,058			2,246,839

Less: Pledged securities available-for-sale, at fair value	(3,863)			(4,200)

Less: Haircut on securities available-for-sale	(189,282)			(193,191)
Total primary liquidity	$	4,297,020		$	4,367,501

Ratio of primary liquidity to total assets	12.7		%	13.0		%


Secondary Liquidity - Off-Balance Sheet	March 31,		December 31,
Available Secured Borrowing Capacity	2025		2024
	(In thousands)
Total secured borrowing capacity with the FHLB	$	6,900,262	$	6,853,652
Less: Letters of credit	(513,908)		(527,893)
Less: Secured advances outstanding	(1,379,842)		(1,100,000)
Available secured borrowing capacity with the FHLB	5,006,512		5,225,759


Available secured borrowing capacity with the FRBSF	5,842,135		6,295,540
Total secondary liquidity	$	10,848,647	$	11,521,299

During the three months ended March 31, 2025, the Company's primary liquidity decreased by $70.5 million to $4.3 billion at March 31, 2025 due mainly to a $181.9 million decrease in interest-earning deposits in financial institutions, offset partially by increases of $87.2 million in AFS securities and $23.6 million in cash and due from banks. We also include certain unencumbered HTM securities in our internal liquidity stress test buffer which are not included in our primary liquidity. During the three months ended March 31, 2025, the Company's secondary liquidity decreased by $672.7 million to $10.8 billion at March 31, 2025 due to decreases in available secured borrowing capacity with the FHLB of $219.2 million and available secured borrowing capacity with the FRB of $453.4 million.

Obtaining new customer deposits, or having existing customers increase their deposit balances with us, are the primary sources of funding for our operations and is one of the highest priorities of the Company. See "- Balance Sheet Analysis - Deposits" for additional information and detail of our deposits. Additionally, we fund our operations with cash flows from our loan and securities portfolios.

Our deposit balances may decrease if customers withdraw funds from the Bank. In order to address the Bank’s liquidity risk from fluctuating deposit balances, the Bank maintains adequate levels of available liquidity on and off the balance sheet.

We use brokered deposits, the availability of which is uncertain and subject to competitive market forces and regulations, for liquidity management purposes. At March 31, 2025, brokered deposits totaled $2.7 billion, consisting of $0.7 billion of non-maturity brokered accounts and $2.0 billion of brokered time deposits. At December 31, 2024, brokered deposits totaled $2.7 billion, consisting of $0.6 billion of non-maturity brokered accounts and $2.1 billion of brokered time deposits.

Our Liquidity Management Policy includes guidelines, which are governed by the Company's Risk Appetite Statement, which include the following metrics: Primary Liquidity Ratio (unencumbered liquid assets, which reflects cash and cash equivalents excluding restricted cash and the market value of unpledged AFS securities, net of a haircut, divided by total assets), Primary + Secondary Liquidity (unencumbered liquid assets, which reflect cash and cash equivalents excluding restricted cash and the market value of unpledged AFS securities, net of a haircut, and available borrowing capacity at the FHLB and FRB, divided by total assets), Brokered Deposits to Total Funding Ratio (brokered deposits to total deposits plus borrowings), Total Borrowings to Total Funding Ratio (borrowings to total deposits and borrowings), and Non-Core Funding to Total Funding Ratio (brokered deposits and borrowings to total deposits plus borrowings). At March 31, 2025, the Bank was in compliance with all of its funding concentration liquidity guidelines.

Holding Company Liquidity

Banc of California, Inc. acts as a source of financial strength for the Bank which can also include being a source of liquidity. The primary sources of liquidity for the holding company include dividends from the Bank, intercompany tax payments from the Bank, and Banc of California, Inc.'s ability to raise capital, issue subordinated and senior debt, and secure outside borrowings. Banc of California, Inc.'s ability to obtain funds for the payment of dividends to our stockholders, the repurchase of shares of common and preferred stock, and other cash requirements is largely dependent upon the Bank’s earnings. The Bank is subject to restrictions under certain federal and state laws and regulations that limit its ability to transfer funds to the holding company through intercompany loans, advances, or cash dividends. Banc of California, Inc.'s ability to pay dividends is also subject to the restrictions set forth by the FRB, and by certain covenants contained in our subordinated debt. See "- Regulatory Matters - Dividend on Preferred Stock " for information regarding the payment of dividends on the Series F preferred stock.

On December 23, 2024, Banc of California, Inc. entered into an unsecured revolving line of credit agreement as a borrower for $50.0 million. On March 17, 2025, the Company executed an amendment to the credit agreement which increased the Company's unsecured revolving line of credit to $100.0 million. As of March 31, 2025 and December 31, 2024, there was no balance outstanding.

On March 17, 2025, we announced that our Board of Directors authorized the repurchase of up to $150.0 million of our common stock. The repurchase authorization expires in March 2026. During the three months ended March 31, 2025, common stock repurchased under the program totaled 2,684,823 shares at a weighted average price per share of $14.36, or $38.5 million in the aggregate. As of March 31, 2025, the Company had $111.5 million remaining under the stock repurchase authorization. Through April 21, 2025, repurchases of Company common stock totaled 11,494,637 shares at a weighted average price per share of $13.05, or $150.0 million in the aggregate. On April 23, 2025, the Company announced an upsize of its stock repurchase program from $150.0 million to $300.0 million and expanded the program to cover both the Company's common stock and depositary shares representing its preferred stock. The program may be changed, suspended, or discontinued at any time.

At March 31, 2025, Banc of California, Inc. had $326.6 million in cash and cash equivalents, of which a substantial amount was on deposit at the Bank. We believe this amount of cash, along with anticipated future dividends from the Bank, will be sufficient to fund the holding company’s cash flow needs over the next 12 months.

Commitments and Contingencies

Our obligations also include off-balance sheet arrangements consisting of loan commitments, of which only a portion is expected to be funded, and standby letters of credit. At March 31, 2025, our loan commitments and standby letters of credit were $4.9 billion and $209.5 million. The loan commitments, a portion of which will eventually result in funded loans, increase our profitability through net interest income when drawn and unused commitment fees prior to being drawn. We manage our overall liquidity taking into consideration funded and unfunded commitments as a percentage of our liquidity sources. Our liquidity sources, as described in "- Liquidity - Liquidity Management ," have been and are expected to be sufficient to meet the cash requirements of our lending activities. For further information on loan commitments, see Note 10. Commitments and Contingencies , of our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

This analysis should be read in conjunction with text under the caption " Quantitative and Qualitative Disclosures About Market Risk " in our Annual Report on Form 10-K for the year ended December 31, 2024, which text is incorporated herein by reference. Our analysis of market risk and market-sensitive financial information contains forward-looking statements and is subject to the disclosure at the beginning of Item 2 regarding such forward-looking information.

Market Risk - Foreign Currency Exposure

We enter into foreign exchange contracts with our clients and counterparty banks primarily for the purpose of offsetting or hedging clients' foreign currency exposures arising out of commercial transactions, and we enter into cross currency swaps and foreign exchange contracts to hedge exposures to loans and debt instruments denominated in foreign currencies. We have experienced and will continue to experience fluctuations in our net earnings as a result of transaction gains or losses related to revaluing certain asset and liability balances that are denominated in currencies other than the U.S. Dollar and the derivatives that hedge those exposures. As of March 31, 2025, the U.S. Dollar notional amounts of loans receivable and subordinated debt payable denominated in foreign currencies were $59.4 million and $27.9 million, and the U.S. Dollar notional amounts of derivatives outstanding to hedge these foreign currency exposures were $57.0 million and $28.5 million. We recognized a foreign currency translation net loss of $278,000 for the three months ended March 31, 2025 and a foreign currency translation net loss of $190,000 for the three months ended March 31, 2024.

Asset/Liability Management and Interest Rate Sensitivity

Interest Rate Risk - Company Governance. On at least a quarterly basis, we measure our IRR position using two methods: (i) Net Interest Income ("NII") simulation analysis and (ii) Economic Value of Equity ("EVE") modeling. The Management Finance Committee ("MFC") and the Finance Committee of the Company's Board of Directors review the results of these analyses at least quarterly. As discussed in more detail below, if projected changes to interest rates cause changes to our simulated net present value of equity and/or net interest income to be outside our pre-established IRR limits, we may adjust our asset and liability mix in an effort to bring our interest rate risk exposure within our established limits.

The pre-established IRR Limits are recommended by management, determined based on analytical review and available peer data published by regulatory agencies about the IRR Limits utilized by other regional banks, and documented in the Company's ALM Policy. The ALM Policy is approved by MFC and the Finance Committee of the Board of Directors annually. We believe our ALM Policy IRR Limits are consistent with prevailing practice in the regional banking industry.

We use a balance sheet simulation model (the "IRR Model") to estimate changes in NII and EVE that would result from immediate and sustained changes in interest rates as of the measurement date. This IRR Model assesses the changes in NII and EVE that would occur in response to an instantaneous and sustained increase and decrease in market interest rates of +-100, +-200, +-300, and +-400 basis points. This model is an IRR management tool, and the results are not necessarily an indication of our future net interest income. The IRR Model has inherent limitations and the model's results are based on a given set of rate changes and assumptions at a single point in time.

The IRR Model is updated at least quarterly, and the IRR Model results are reported to MFC and the Finance Committee of the Company's Board of Directors at each quarterly meeting, as applicable.

Our Risk When Interest Rates Change. The rates of interest we earn on assets and pay on liabilities generally are established contractually for a period of time, except for non-maturity deposits. Market interest rates change over time. Accordingly, our results of operations, like those of other financial institutions, are impacted by changes in interest rates and the interest rate sensitivity of our assets and liabilities. The risk associated with changes in interest rates and our ability to adapt to these changes is known as interest rate risk and is our most significant market risk.

How We Measure Our Risk of Interest Rate Changes. As part of our attempt to manage our exposure to changes in interest rates and comply with applicable regulations, we have established asset/liability committees to monitor our interest rate risk. In monitoring interest rate risk, we continually analyze and manage assets and liabilities based on their payment streams and interest rates, the timing of their maturities and/or prepayments, and their sensitivity to actual or potential changes in market interest rates.

100

The Management Finance Committee ("MFC") is comprised of select members of senior management. The Company also has a Finance Committee of the Boards of Directors of the Company and the Bank (together with MFC, the “ALCOs”). In order to manage the risk of potential adverse effects of material and prolonged or volatile changes in interest rates on our results of operations, we have adopted asset/liability management policies to align maturities and repricing terms of interest-earning assets to interest-bearing liabilities. The asset/liability management policies establish guidelines for the volume and mix of assets and funding sources taking into account relative costs and spreads, interest rate sensitivity and liquidity needs, while management monitors adherence to those guidelines with oversight by the ALCOs. The objectives are to manage assets and funding sources to produce results that are consistent with liquidity, capital adequacy, growth, risk, and profitability goals. The ALCOs meet no less than quarterly to review, among other things, economic conditions and interest rate outlook, current and projected liquidity needs and capital position, anticipated changes in the volume and mix of assets and liabilities and interest rate risk exposure limits versus current projections pursuant to our economic value of equity analysis.

In order to manage our assets and liabilities and achieve the desired liquidity, credit quality, interest rate risk, profitability, and capital targets, we evaluate various strategies including:

• Complementing our current loan origination platform through strategic acquisitions of whole loans,

• Strategically managing multiple warehouse relationships,

• Originating shorter-term consumer loans,

• Managing the level of investments and duration of investment securities,

• Managing our deposits to establish stable deposit relationships, and

• Using certain derivatives such as swaps as hedges to align maturities and repricing terms.

At times, depending on the level of general interest rates, the relationship between long- and short-term interest rates, market conditions and competitive factors, the ALCOs may decide to increase our interest rate risk position within the asset/liability tolerance set forth by our Board of Directors. As part of its procedures, the ALCOs regularly review interest rate risk by forecasting the impact of alternative interest rate environments on net interest income and our economic value of equity.

Interest Rate Sensitivity of Economic Value of Equity and Net Interest Income

Interest rate risk results from our banking activities and is the primary market risk for us. Interest rate risk is caused by the following factors:

• Repricing risk - timing differences in the repricing and maturity of interest-earning assets and interest-bearing liabilities;

• Option risk - changes in the expected maturities of assets and liabilities, such as borrowers’ ability to prepay loans and depositors’ ability to redeem certificates of deposit before maturity;

• Yield curve risk - changes in the yield curve where interest rates increase or decrease in a nonparallel fashion; and

• Basis risk - changes in spread relationships between different yield curves, such as U.S. Treasuries, U.S. Prime Rate, and SOFR.

Since our earnings are primarily dependent on our ability to generate net interest income, we focus on actively monitoring and managing the effects of adverse changes in interest rates on our net interest income. Management of our interest rate risk is overseen by the Finance Committee of the Boards of Directors of the Company and Bank, which delegates the day-to-day management of interest rate risk to the MFC. MFC ensures that the Bank is following the appropriate and current regulatory guidance in the formulation and implementation of our interest rate risk program. The Finance Committee of the Boards of Directors of the Company and the Bank reviews the results of our interest rate risk modeling at least quarterly to ensure that we have appropriately measured our interest rate risk, mitigated our exposures appropriately and any residual risk is acceptable. In addition to our annual review of our asset liability management policy, our Board of Directors periodically reviews the interest rate risk policy limits.

Interest rate risk management is an active process that encompasses monitoring loan and deposit flows complemented by investment and funding activities. Effective management of interest rate risk begins with understanding the dynamic repricing characteristics of our assets and liabilities and determining the appropriate interest rate risk posture given business forecasts, management objectives, market expectations, and policy constraints.

101

Our interest rate risk exposure is measured and monitored through various risk management tools, including a simulation model that performs interest rate sensitivity analysis under multiple scenarios. The simulation model is based on the actual maturities and re-pricing characteristics of the Bank’s interest-rate sensitive assets and liabilities. The simulated interest rate scenarios include an instantaneous parallel shift in the yield curve (“Rate Shock”). We then evaluate the simulation results using two approaches: Net Interest Income at Risk (“NII at Risk”), and Economic Value of Equity (“EVE”). Under NII at Risk, the impact on net interest income from changes in interest rates on interest-earning assets and interest-bearing liabilities is modeled utilizing various assumptions for assets, liabilities, and derivatives.

We used a NII simulation model to measure the estimated changes in NII that would result over the next twelve months from immediate and sustained changes in interest rates as of March 31, 2025. We have assumed no growth or changes in the product mix of either our total interest-sensitive assets or liabilities over the next twelve months, therefore the results reflect an interest rate shock to a static balance sheet. This model is an interest rate risk management tool, and the results are not necessarily an indication of our future net interest income.

EVE measures the period end present value of assets minus the present value of liabilities. Asset liability management uses this value to measure the changes in the economic value of the Company under various interest rate scenarios. In some ways, the economic value approach provides a broader scope than net interest income volatility approach since it captures all anticipated future cash flows.

The balance sheet is considered “asset sensitive” when an increase in interest rates is expected to expand our net interest income, as rates earned on our interest-earning assets reprice higher at a pace faster than rates paid on our interest-bearing liabilities. Conversely, the balance sheet is considered “liability sensitive” when an increase in interest rates is expected to compress our net interest income, as rates paid on our interest-bearing liabilities reprice higher at a pace faster than rates earned on our interest-earning assets.

At both March 31, 2025 and December 31, 2024, our interest rate risk profile remained "neutral." This position reflects our balanced composition of repricing assets and beta-adjusted repricing deposits and other interest-bearing liabilities over the course of the next twelve months. Given the uncertainty of the magnitude, timing, and direction of future interest rate movements, as well as the shape of the yield curve, actual results may vary materially from those predicted by our model.

The following table presents the projected change in the Company’s economic value of equity at March 31, 2025 and net interest income over the next twelve months, which would occur upon an immediate change in interest rates, but without giving effect to any steps that management might take to counteract that change:


	Change in Interest Rates in Basis Points (bps) (1)
	Economic Value of Equity						Net Interest Income
			Amount		Percentage				Amount		Percentage
March 31, 2025	Amount		Change		Change		Amount		Change		Change
	(Dollars in millions)


+200 bps	$	5,131	$	(297)	(5.5)	%	$	1,007	$	3	0.3	%
+100 bps	$	5,289	$	(138)	(2.5)	%	$	1,009	$	5	0.5	%
0 bps	$	5,427					$	1,004
-100 bps	$	5,588	$	161	3.0	%	$	999	$	(5)	(0.5)	%
-200 bps	$	5,674	$	247	4.6	%	$	989	$	(15)	(1.5)	%

____________________

(1) Assumes an instantaneous uniform change in interest rates at all maturities and no rate shock has a rate lower than zero percent.

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Earnings-at-Risk

In addition to interest rate risk associated with net interest income, certain noninterest expense items are also sensitive to changes in market interest rates. One such item is the cost of earnings credit rates ("ECRs") provided on certain deposit accounts, primarily those associated with our HOA business. ECRs fluctuate in response to changes in the federal funds rate and can therefore influence the Company's overall earnings sensitivity profile. We expect that a declining interest rate environment would reduce ECR costs and thereby reduce noninterest expense, conversely, when interest rates rise, ECR costs would also rise, thereby increasing noninterest expense. The Company's Earnings-at-Risk ("EaR") modeling incorporates the impact of these rate-sensitive noninterest expenses, in addition to interest income and expense, to assess the effect of interest rate movements on projected earnings over a twelve-month horizon.

As of March 31, 2025, HOA deposits eligible for ECRs totaled approximately $3.7 billion. Taking into account the rate sensitivity of ECRs, which are primarily attributable to such deposits, the Company's overall earnings profile would be considered "liability sensitive".

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ITEM 4. CONTROLS AND PROCEDURES

(a) Evaluation of disclosure controls and procedures. Our Chief Executive Officer and Chief Financial Officer have evaluated our disclosure controls and procedures as of March 31, 2025 and have concluded that these disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. These disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports we file or submit is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

(b) Changes in Internal Control Over Financial Reporting. There were no changes in our internal control over financial reporting that occurred during the first quarter of 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The information set forth in Note 10. Commitments and Contingencies of our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q is incorporated herein by reference.

In addition, in the ordinary course of our business, we are party to various legal actions, which we believe are incidental to the operation of our business. The outcome of such legal actions and the timing of ultimate resolution are inherently difficult to predict. In the opinion of management, based upon information currently available to us, any resulting liability, in addition to amounts already accrued, and taking into consideration insurance which may be applicable, would not have a material adverse effect on the Company’s financial statements or operations.

ITEM 1A. RISK FACTORS

For information regarding factors that could affect the Company's results of operations, financial condition, and liquidity, see the risk factors disclosed in the " Risk Factors " section of our Form 10-K. See also "Forward-Looking Information" disclosed in Part I, Item 2 of this Quarterly Report on Form 10-Q. There have been no material changes to the risk factors previously disclosed in our Form 10-K.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table sets forth information regarding repurchases of shares of our common stock during the three months ended March 31, 2025:


				Total Number of	Approximate Dollar
				Shares Purchased	Value of Shares
	Total			as Part of	That May Yet
	Number of	Average		Publicly	Be Purchased
	Shares	Price Paid		Announced	Under the
Period	Purchased (1)	Per Share		Program (2)	Program (2)
	(Dollars in thousands, except per share amounts)
January 1 - January 31, 2025	4,326	$	14.82	—	$	—
February 1 - February 28, 2025	157,543	$	14.74	—	$	—
March 1 - March 31, 2025	2,706,434	$	14.36	2,684,823	$	111,454
Total	2,868,303	$	14.38	2,684,823

__________________________

(1) Includes shares repurchased pursuant to net settlement by employees in satisfaction of income tax withholding obligations incurred through the vesting of Company stock awards, and shares repurchased pursuant to the Company's publicly announced Stock Repurchase Program described in (2) below.

(2) On March 17, 2025, the Company announced that its Board of Directors authorized a Stock Repurchase Program to purchase up to $150.0 million of its common stock, with the authorization expiring in March 2026.

On March 17, 2025, we announced a repurchase program of up to $150.0 million of our common stock. The repurchase authorization expires in March 2026.

On April 23, 2025, the Company announced an upsize of its stock repurchase program from $150.0 million to $300.0 million and expanded the program to cover both the Company's common stock and depositary shares representing its preferred stock. As before, the repurchase authorization expires in March 2026.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Trading Arrangements

During the quarter ended March 31, 2025, none of our directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (in each case, as defined in Item 408 of Regulation S-K) for the purchase or sale of the Company’s securities.

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ITEM 6. EXHIBITS


Exhibit Number			Description
2.1			Agreement and Plan of Merger, dated as of July 25, 2023, by and among PacWest Bancorp, Banc of California, Inc. and Cal Merger Sub, Inc. (Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed on July 28, 2023 and incorporated herein by reference).
3.1			Third Articles of Restatement of Banc of California, Inc., restated as of February 27, 2024 (Exhibit 3.1 to the Registrant's Annual Report on Form 10-K filed on February 29, 2024 and incorporated herein by reference).
3.2			Sixth Amended and Restated Bylaws of Banc of California, Inc. (Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed on May 15, 2023 and incorporated herein by reference.)
31.1			Section 302 Certification of Chief Executive Officer (Filed herewith).
31.2			Section 302 Certification of Chief Financial Officer (Filed herewith).
32.1+			Section 906 Certification of Chief Executive Officer (Furnished herewith).
32.2+			Section 906 Certification of Chief Financial Officer (Furnished herewith).
101			Interactive data files pursuant to Rule 405 of Regulation S-T formatted in Inline XBRL: (i) the Condensed Consolidated Balance Sheets as of March 31, 2025, and December 31, 2024 , (ii) the Condensed Consolidated Statements of Earnings for the three months ended March 31, 2025, December 31, 2024 , and March 31, 2024 , (iii) the Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024 , (iv) the Condensed Consolidated Statement of Changes in Stockholders’ Equity for the three months ended March 31, 2025 and 2024 , (v) the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025, and March 31, 2024 , and (vi) the Notes to Condensed Consolidated Financial Statements. (Filed herewith).
104			Cover page of Banc of California, Inc.'s Quarterly Report on Form 10-Q formatted as Inline XBRL and contained in Exhibit 101.

__________________

+ This exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933, as amended, or the Exchange Act.

The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

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Signatures

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, thereunto duly authorized.


		BANC OF CALIFORNIA, INC.

Date:	May 9, 2025	/s/ Jared M. Wolff
		Jared M. Wolff
		President and Chief Executive Officer
		(Principal Executive Officer)




Date:	May 9, 2025	/s/ Joseph Kauder
		Joseph Kauder
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)




Date:	May 9, 2025	/s/ Karen Hon
		Karen Hon
		Executive Vice President and Chief Accounting Officer
		(Principal Accounting Officer)

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TABLE OF CONTENTS

Part I. Financial Information Item 1. Condensed Consolidated Financial Statements (unaudited)Note 1. Organization and Summary Of Significant Accounting Policies Note 2. Restricted Cash Note 3. Investment Securities Note 4. Loans and Leases Note 5. Goodwill and Other Intangible Assets, Net Note 6. Other Assets Note 7. Leases Note 8. Borrowings and Subordinated Debt Note 9. Derivatives Note 10. Commitments and Contingencies Note 11. Fair Value Option Note 12. Fair Value Measurements Note 13. Earnings Per Share Note 14. Revenue From Contracts with Customers Note 15. Stockholders' Equity Note 16. Segment Reporting Note 17. Related Party Transactions Note 18. Subsequent Events Item 2. Management's Discussion and Analysis Of Financial Condition and Results Of Operations Item 3. Quantitative and Qualitative Disclosures About Market Risk Item 4. Controls and Procedures Part II. Other Information Item 1. Legal Proceedings Item 1A. Risk Factors Item 2. Unregistered Sales Of Equity Securities and Use Of Proceeds Item 3. Defaults Upon Senior Securities Item 4. Mine Safety Disclosures Item 5. Other Information Item 6. Exhibits

Exhibits

2.1 Agreement and Plan of Merger, dated as of July 25, 2023, by and among PacWest Bancorp, Banc of California, Inc. and Cal Merger Sub, Inc. (Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed on July 28, 2023 and incorporated herein by reference). 3.1 Third Articles of Restatement of Banc of California, Inc., restated as of February 27, 2024 (Exhibit 3.1 to the Registrant's Annual Report on Form 10-K filed on February 29, 2024 and incorporated herein by reference). 3.2 Sixth Amended and Restated Bylaws of Banc of California, Inc. (Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed on May 15, 2023 and incorporated herein by reference.) 31.1 Section 302 Certification of Chief Executive Officer (Filed herewith). 31.2 Section 302 Certification of Chief Financial Officer (Filed herewith). 32.1+ Section 906 Certification of Chief Executive Officer (Furnished herewith). 32.2+ Section906 Certification of Chief Financial Officer (Furnished herewith).

BANC 10-Q Quarter ended March 31, 2025

Exhibits