EX-99.1 2 d917447dex991.htm EX-99.1

EX-99.1

Exhibit 99.1

Banc of California Reports First Quarter Results

IRVINE, Calif., (April 29, 2015) – Banc of California, Inc. (NYSE: BANC) today reported net income of $12.6 million and net income available to common shareholders of $11.7 million, or $0.29 per diluted common share for the quarter ended March 31, 2015. This compares to net income available to common shareholders of $9.2 million, or $0.25 per diluted common share, for the quarter ended December 31, 2014, and a net loss to common shareholders of $0.2 million, or $(0.01) per diluted common shares, for the year ago quarter ended March 31, 2014.

“We are proud of our strong first quarter results which were marked by record net income for the Company,” said Steven Sugarman, President and Chief Executive Officer. “This quarter’s strength was supported by a full quarter of benefit from the Popular transaction. We are also particularly proud of obtaining an investment grade credit rating for the Company and the Bank subsidiary, which highlights the strength of the Company’s balance sheet and validates our ability to serve the diverse needs of clients across the state as California’s Bank.”

The Company’s consolidated assets totaled $6.1 billion at March 31, 2015, an increase of $0.1 billion compared to the prior quarter, and an increase of $2.1 billion compared to a year ago.

Return on average assets for the first quarter was 0.9%, and return on average tangible common equity was 13.5% for the first quarter.

Total loans and leases, representing both loans held for investment and held for sale, of $5.2 billion at March 31, 2015 increased by $38 million compared to the prior quarter, and have increased by $1.8 billion compared to the year ago quarter. First quarter origination volumes remained strong and totaled $1.5 billion. Held for investment loan balances declined slightly from the prior quarter, as net loan growth was muted by pay downs and payoffs as well as the sale of $29 million of multifamily loans during the quarter.

Total deposits of $4.9 billion at March 31, 2015 increased by $190 million, or 4%, compared to the prior quarter, and have increased by $1.8 billion, or 56%, compared to the year ago quarter. Noninterest-bearing deposits increased by $87 million, or 13%, compared to the prior quarter.

Total revenue of $98.0 million for the first quarter increased by $10.8 million, or 12%, compared with the prior quarter, and increased by $37.5 million, or 62%, compared to the year ago quarter.

First quarter net interest income of $52.0 million increased by $5.7 million, or 12%, from the prior quarter, and increased by $16.8 million, or 48%, compared to the year ago quarter.

The consolidated net interest margin for the first quarter was 3.69%, an increase of 4 basis points from 3.65% reported in the prior quarter. The net interest margin for Banc of California, N.A. was 3.84% for the first quarter, an increase of 2 basis points from prior quarter. Cost of total deposits for the first quarter was 0.54%, down 6 basis points, or 10%, from the prior quarter, and was the primary driver of margin expansion during the quarter as overall loan yields remained relatively stable at 4.59%.

Noninterest income for the first quarter totaled $46.0 million, compared to $40.9 million for the prior quarter and $25.3 million for the year ago quarter. Mortgage banking income totaled $37.9 million for the first quarter, compared to $25.0 million for the prior quarter and $17.3 million for the year ago quarter. Both origination volumes and gain on sale margins increased in the first quarter, contributing to higher mortgage banking income.

18500 Von Karman Ave. ● Suite 1100 ● Irvine, CA 92612 ● (949) 236-5250 ● www.bancofcal.com

Total noninterest expense for the first quarter totaled $75.9 million, a decrease of $2.3 million compared to the prior quarter. The prior quarter included approximately $5.9 million of non-recurring costs, primarily related to the Popular acquisition. Noninterest expense for the first quarter includes a full quarter of ongoing expenses related to operation of the acquired Popular branch locations. Higher mortgage banking origination volumes during the first quarter contributed to the sequential quarter increase in expenses excluding the $5.9 million of one-time costs in the prior quarter.

The Company’s allowance for loan and lease losses (ALLL) ended the quarter at $29.3 million, and equaled 1.35% of originated loans, and represented a coverage ratio of 69% of nonperforming loans at March 31, 2015. There was no provision for loan losses for the first quarter, compared to $4.2 million in the prior quarter. The ratio of delinquent non-PCI loans to total non-PCI loans equaled 1.66% for the first quarter, up from 1.55% at the prior quarter, and down from 2.21% a year ago. The ratio of nonperforming assets to total assets stood at 0.71% for the first quarter. Net charge offs for the first quarter were $0.1 million, compared to a net recovery of less than $0.1 million during the prior quarter.

The Company remains well-capitalized with a Tier 1 Risk-Based Capital Ratio of 10.9%, a Tier 1 Leverage Ratio of 8.0%, and a Tangible Equity to Tangible Assets Ratio (TE/TA) of 7.6%, as of March 31, 2015. On a pro-forma basis, as a result of the debt and preferred offerings in early April, the Company had a Tier 1 Risk-Based Capital Ratio of 13.2%, a Tier 1 Leverage Ratio of 9.9%, and a Tangible Equity to Tangible Assets Ratio (TE/TA) of 9.0% based on applying the net proceeds raised to the March 31, 2015 consolidated balance sheet.

The Company will host a conference call to discuss its first quarter financial results at 8:00 a.m. Pacific Time (PT) on Thursday, April 30, 2015. Interested parties are welcome to attend the conference call by dialing 888-317-6003, and referencing event code 5076389. A live audio webcast will also be available and the webcast link will be posted on the Company’s website under the Investors section. The slide presentation for the call will also be available on the Company’s website prior to the call.

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) has total assets over $6 billion and is the largest bank holding company headquartered in Orange County, CA. The Company’s principal subsidiary, Banc of California, N.A., provides banking services to California’s diverse private businesses, entrepreneurs and homeowners. Banc of California operates over 100 offices, including 38 full-service branch locations in California.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by Banc of California, Inc. with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements and Banc of California, Inc. undertakes no obligation to update any such statements to reflect circumstances or events that occur after the date on which the forward-looking statement is made.

Source: Banc of California, Inc.

INVESTOR RELATIONS INQUIRIES:		MEDIA INQUIRIES:
Banc of California, Inc.		Vectis Strategies
Timothy Sedabres, (855) 361-2262		David Herbst, (213) 973-4113 x101

- 2 -

Banc of California, Inc

Consolidated Statements of Financial Condition

(Dollars in thousands)

(Unaudited)

		March 31, 2015				December 31, 2014				September 30, 2014				June 30, 2014				March 31, 2014
ASSETS
Cash and cash equivalents		$	265,402			$	231,199			$	184,985			$	258,051			$	333,639
Time deposits in financial institutions			1,900				1,900				1,900				2,145				1,745
Securities available for sale			393,586				345,695				310,385				233,013				107,525
Loans held for sale			1,240,942				1,187,090				1,127,339				1,095,741				1,000,394
Loans and leases receivable			3,933,715				3,949,122				2,712,068				2,602,213				2,396,995
Allowance for loan and lease losses			(29,345	)			(29,480	)			(25,283	)			(22,627	)			(20,003	)
Federal Home Loan Bank and other bank stock			39,844				42,241				35,432				34,392				26,801
Servicing rights, net			21,829				19,566				11,745				10,191				18,880
Other real estate owned, net			498				423				605				605				150
Premises and equipment, net			78,285				78,685				67,323				67,457				67,278
Goodwill			31,591				31,591				31,591				32,150				32,868
Other intangible assets, net			23,708				25,252				10,829				10,959				11,213
Deferred income tax (1)			14,157				16,373				8,663				2,546				—
Income tax receivable			—				—				—				—				2,769
Bank-owned life insurance investment			19,154				19,095				19,038				18,984				18,928
Other assets (1)			62,089				52,545				41,206				40,511				31,283
Total assets		$	6,097,355			$	5,971,297			$	4,537,826			$	4,386,331			$	4,030,465
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-bearing deposits		$	749,129			$	662,295			$	457,743			$	408,404			$	430,925
Interest-bearing deposits			4,112,863				4,009,536				3,173,967				2,938,951				2,678,221
Total deposits			4,861,992				4,671,831				3,631,710				3,347,355				3,109,146
Advances from Federal Home Loan Bank			545,000				633,000				305,000				450,000				395,000
Other borrowings			15,000				—				—				—				70,000
Notes payable, net			92,668				93,569				95,549				96,481				82,416
Reserve for loss reimbursements on sold loans			8,432				8,303				7,045				6,174				5,866
Income taxes payable			4,488				56				2,158				31				—
Accrued expenses and other liabilities			55,615				61,223				49,653				47,163				42,880
Total liabilities			5,583,195				5,467,982				4,091,115				3,947,204				3,705,308
Commitments and contingent liabilities
Preferred stock, Series A, non-cumulative perpetual preferred stock			31,934				31,934				31,934				31,934				31,934
Preferred stock, Series B, non-cumulative perpetual preferred stock			10,000				10,000				10,000				10,000				10,000
Preferred stock, Series C, 8.00% non-cumulative perpetual preferred stock			37,943				37,943				37,943				37,943				37,943
Common stock			367				358				297				287				211
Common stock, class B non-voting non-convertible			—				6				6				6				6
Additional paid-in capital			424,636				422,910				371,738				369,530				258,861
Retained earnings (1)			36,880				29,589				24,692				18,588				14,229
Treasury stock			(29,798	)			(29,798	)			(29,798	)			(29,652	)			(27,726	)
Accumulated other comprehensive (loss)/income, net			2,198				373				(101	)			491				(301	)
Total stockholders’ equity			514,160				503,315				446,711				439,127				325,157
Total liabilities and stockholders’ equity		$	6,097,355			$	5,971,297			$	4,537,826			$	4,386,331			$	4,030,465

(1) Amounts for 2014 periods have been updated to reflect the first quarter 2015 adoption of ASU 2014-1 related to investment in low income housing tax credit.

1

Banc of California, Inc

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

(Unaudited)

		Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2015				2014				2014				2014				2014
Interest and dividend income
Loans, including fees		$	58,155			$	52,599			$	44,555			$	42,077			$	41,530
Securities			1,927				1,781				1,460				993				924
Dividends and other interest-earning assets			698				700				634				564				322
Total interest and dividend income			60,780				55,080				46,649				43,634				42,776
Interest expense
Deposits			6,361				6,440				6,165				6,071				5,735
Federal Home Loan Bank advances			353				210				118				99				100
Notes payable and other interest-bearing liabilities			2,069				2,099				2,180				1,889				1,756
Total interest expense			8,783				8,749				8,463				8,059				7,591
Net interest income			51,997				46,331				38,186				35,575				35,185
Provision for loan and lease losses			—				4,159				2,780				2,108				1,929
Net interest income after provision for loan and lease losses			51,997				42,172				35,406				33,467				33,256
Noninterest income
Customer service fees			910				651				230				356				253
Net gain on sale of loans			4,472				3,927				10,260				3,038				2,603
Mortgage banking income			37,933				25,030				26,943				26,133				17,324
Advisory service fees			1,197				6,722				3,264				1,808				1,110
Loan brokerage income			1,141				2,314				2,033				2,416				1,911
All other income			327				2,245				1,368				1,621				2,077
Total noninterest income			45,980				40,889				44,098				35,372				25,278
Noninterest expense
Salaries and employee benefits			49,771				47,974				41,094				39,130				34,681
Occupancy and equipment			9,771				9,512				7,969				7,425				8,537
Professional fees			3,435				7,096				4,758				3,528				3,865
Data processing			1,835				1,884				1,286				1,270				791
Amortization of intangible assets			1,544				1,306				890				944				939
All other expenses (1)			9,523				10,448				11,357				8,007				8,781
Total noninterest expense			75,879				78,220				67,354				60,304				57,594
Income before income taxes			22,098				4,841				12,150				8,535				940
Income tax (benefit) expense (1)			9,524				(5,269	)			903				436				191
Net income			12,574				10,110				11,247				8,099				749
Preferred stock dividends			910				910				910				910				910
Net income (loss) available to common stockholders		$	11,664			$	9,200			$	10,337			$	7,189			$	(161	)
Basic earnings (loss) per total common share		$	0.30			$	0.25			$	0.31			$	0.27			$	(0.01	)
Diluted earnings (loss) per total common share		$	0.29			$	0.25			$	0.31			$	0.27			$	(0.01	)

(1) Amounts for 2014 periods have been updated to reflect the first quarter 2015 adoption of ASU 2014-1 related to investment in low income housing tax credit.

2

Banc of California, Inc

Selected Financial Data

(Dollars in thousands)

(Unaudited)

		Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2015				2014				2014				2014				2014
Average balances:
Total assets		$	5,931,426			$	5,223,463			$	4,391,523			$	4,034,447			$	3,728,170
Total gross loans and leases			5,139,399				4,534,428				3,829,204				3,553,693				3,289,689
Securities available for sale			354,475				310,454				257,067				168,230				163,007
Total interest earning assets			5,713,766				5,033,973				4,228,555				3,858,772				3,568,092
Total interest-bearing deposits			4,085,673				3,699,464				3,070,130				2,855,650				2,592,884
Total borrowings			583,979				406,531				378,671				319,774				350,631
Interest bearing liabilities			4,669,652				4,105,995				3,448,801				3,175,424				2,943,515
Total stockholders’ equity			517,335				487,578				449,392				385,098				329,617
Profitability and other ratios:
Return on average assets (1)			0.86	%			0.77	%			1.02	%			0.81	%			0.08	%
Return on average equity (1)			9.86	%			8.23	%			9.93	%			8.44	%			0.92	%
Dividend payout ratio (2)			40.00	%			48.00	%			38.71	%			44.44	%			—
Net interest spread			3.55	%			3.49	%			3.41	%			3.52	%			3.81	%
Net interest margin (1)			3.69	%			3.65	%			3.58	%			3.70	%			4.00	%
Noninterest income to total revenue (3)			46.93	%			46.88	%			53.59	%			49.86	%			41.81	%
Noninterest income to average total assets (1)			3.14	%			3.11	%			3.98	%			3.52	%			2.75	%
Noninterest expense to average total assets (1)			5.19	%			5.94	%			6.08	%			6.00	%			6.27	%
Efficiency ratio (4)			77.45	%			89.68	%			81.86	%			85.00	%			95.25	%
Average held for investment loans and leases to average deposits			81.72	%			79.08	%			75.39	%			74.60	%			80.27	%
Average securities available for sale to average total assets			5.98	%			5.94	%			5.85	%			4.17	%			4.37	%
Average stockholders’ equity to average total assets			8.72	%			9.33	%			10.23	%			9.55	%			8.84	%
Allowance for loan and lease losses (ALLL):
Balance at beginning of period		$	29,480			$	25,283			$	22,627			$	20,003			$	18,805
Loans and leases charged off			(357	)			(25	)			(312	)			(383	)			(203	)
Recoveries of loans and leases previously charged off			222				63				96				641				435
Transfer of loans from (to) held-for-sale			—				—				92				258				(963	)
Provision for loan and lease losses			—				4,159				2,780				2,108				1,929
Balance at end of period		$	29,345			$	29,480			$	25,283			$	22,627			$	20,003
Reserve for loss on repurchased loans
Balance at beginning of period		$	8,303			$	7,045			$	6,174			$	5,866			$	5,427
Provision for loan repurchases			1,328				1,149				1,556				968				571
Payment made for loss reimbursement on sold loans			(1,199	)			109				(685	)			(660	)			(132	)
Balance at end of period		$	8,432			$	8,303			$	7,045			$	6,174			$	5,866

(1) Ratios are presented on an annualized basis

(2) Dividends declared per common share divided by basic earnings per share. Not applicable for the three months ended March 31, 2014, due to the net loss attributable to stockholders.

(3) Total revenue is equal to the sum of net interest income before provision and noninterest income.

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

3

Banc of California, Inc

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

		March 31,				December 31,				September 30,				June 30,				March 31,
		2015				2014				2014				2014				2014
Asset quality information and ratios:
30 to 89 days delinquent, excluding PCI loans		$	40,641			$	40,694			$	35,531			$	44,894			$	29,726
90+ days delinquent, excluding PCI loans			20,538				16,835				15,672				16,925				16,419
Total delinquent loans, excluding PCI loans			61,179				57,529				51,203				61,819				46,145
PCI loans, 30 to 89 days delinquent			16,375				17,641				18,743				25,109				19,898
PCI loans, 90+ days delinquent			6,986				5,761				4,017				12,398				12,110
Total delinquent PCI loans			23,361				23,402				22,760				37,507				32,008
Total delinquent loans		$	84,540			$	80,931			$	73,963			$	99,326			$	78,153
Total delinquent non-PCI loans to total non-PCI loans			1.66	%			1.55	%			2.08	%			2.69	%			2.21	%
Total delinquent loans to gross loans			2.15	%			2.05	%			2.73	%			3.82	%			3.26	%
Non-performing loans, excluding PCI loans		$	42,754			$	38,381			$	38,333			$	41,611			$	32,440
90+ days delinquent and still accruing loans, excluding PCI loans			—				—				—				—				—
Other real estate owned			498				423				605				605				150
Non-performing assets		$	43,252			$	38,804			$	38,938			$	42,216			$	32,590
ALLL to non-performing loans			68.64	%			76.81	%			65.96	%			54.38	%			61.66	%
Non-performing loans to gross loans			1.09	%			0.97	%			1.41	%			1.60	%			1.35	%
Non-performing assets to total assets			0.71	%			0.65	%			0.86	%			0.96	%			0.81	%

4

Banc of California, Inc

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

		March 31,				December 31,				September 30,				June 30,				March 31,
		2015				2014				2014				2014				2014
Loan and lease breakdown by ALLL evaluation type:
Originated loans and leases
Individually evaluated for impairment		$	29,301			$	29,287			$	29,030			$	29,763			$	13,504
Collectively evaluated for impairment			1,947,211				1,892,240				1,668,004				1,447,077				1,210,993
Acquired loans through business acquisitions - non-impaired
Individually evaluated for impairment			2,818				4,191				8,004				6,173				1,759
Collectively evaluated for impairment			1,358,184				1,411,927				377,554				409,745				438,816
Seasoned SFR mortgage loan pools - non-impaired			354,402				364,580				376,575				404,398				418,501
Acquired with deteriorated credit quality			241,799				246,897				252,901				305,057				313,422
Total loans		$	3,933,715			$	3,949,122			$	2,712,068			$	2,602,213			$	2,396,995
ALLL breakdown:
Originated loans and leases
Individually evaluated for impairment		$	1,199			$	1,288			$	517			$	309			$	62
Collectively evaluated for impairment			25,474				25,263				22,011				19,427				17,398
Acquired loans through business acquisitions - non-impaired
Individually evaluated for impairment			—				—				7				—				—
Collectively evaluated for impairment			2,466				2,906				2,748				2,570				2,347
Seasoned SFR mortgage loan pools - non-impaired			—				—				—				—				—
Acquired with deteriorated credit quality			206				23				—				321				196
Total ALLL		$	29,345			$	29,480			$	25,283			$	22,627			$	20,003
Discount on Purchased/Acquired Loans:
Acquired loans through business acquisitions - non-impaired		$	16,877			$	16,441			$	6,512			$	6,536			$	7,479
Seasoned SFR mortgage loan pools - non-impaired			28,967				29,955				30,811				33,044				34,619
Acquired with deteriorated credit quality			53,381				55,865				57,961				84,876				89,302
Total Discount		$	99,225			$	102,261			$	95,284			$	124,456			$	131,400
Ratios:
To originated loans:
Individually evaluated for impairment			4.09	%			4.40	%			1.78	%			1.04	%			0.46	%
Collectively evaluated for impairment			1.31	%			1.34	%			1.32	%			1.34	%			1.44	%
Total ALLL			1.35	%			1.38	%			1.33	%			1.34	%			1.43	%
To originated and acquired non-impaired loans:
Individually evaluated for impairment			3.73	%			3.85	%			1.41	%			0.86	%			0.41	%
Collectively evaluated for impairment			0.85	%			0.85	%			1.21	%			1.18	%			1.20	%
Total ALLL			0.87	%			0.88	%			1.21	%			1.18	%			1.19	%
Total ALLL and discount (1)			1.38	%			1.38	%			1.53	%			1.52	%			1.64	%
To total loans:
Individually evaluated for impairment			3.73	%			3.85	%			1.41	%			0.86	%			0.41	%
Collectively evaluated for impairment			0.76	%			0.77	%			1.02	%			0.97	%			0.95	%
Total ALLL			0.75	%			0.75	%			0.93	%			0.87	%			0.83	%
Total ALLL and discount (1)			3.27	%			3.34	%			4.45	%			5.65	%			6.32	%

(1) The ratios were calculated by dividing a sum of ALLL and discounts by carrying value of loans.

5

Banc of California, Inc

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

		March 31,				December 31,				September 30,				June 30,				March 31,
		2015				2014				2014				2014				2014
Composition of held for investment loans and leases
Commercial real estate		$	975,734			$	999,857			$	521,867			$	535,744			$	560,581
Multi-family			940,053				955,683				367,364				234,179				155,382
Construction			38,081				42,198				25,997				30,761				25,144
Commercial and industrial			489,229				490,900				366,416				368,540				299,184
SBA			48,254				36,155				25,729				28,684				26,541
Lease financing			102,012				85,749				72,027				57,754				48,537
Total commercial loans			2,593,363				2,610,542				1,379,400				1,255,662				1,115,369
Single family residential mortgage			1,169,134				1,171,662				1,191,021				1,212,813				1,158,863
Other consumer			171,218				166,918				141,647				133,738				122,763
Total consumer loans			1,340,352				1,338,580				1,332,668				1,346,551				1,281,626
Total gross loans and leases		$	3,933,715			$	3,949,122			$	2,712,068			$	2,602,213			$	2,396,995
Composition percentage of held for investment loans and leases
Commercial real estate			24.8	%			25.3	%			19.2	%			20.6	%			23.4	%
Multi-family			23.9	%			24.2	%			13.5	%			9.0	%			6.5	%
Construction			1.0	%			1.1	%			1.0	%			1.2	%			1.0	%
Commercial and industrial			12.4	%			12.4	%			13.5	%			14.2	%			12.5	%
SBA			1.2	%			0.9	%			0.9	%			1.1	%			1.1	%
Lease financing			2.6	%			2.2	%			2.7	%			2.2	%			2.0	%
Total commercial loans			65.9	%			66.1	%			50.8	%			48.3	%			46.5	%
Single family residential mortgage			29.7	%			29.7	%			44.0	%			46.6	%			48.4	%
Other consumer			4.4	%			4.2	%			5.2	%			5.1	%			5.1	%
Total consumer loans			34.1	%			33.9	%			49.2	%			51.7	%			53.5	%
Total gross loans and leases			100.0	%			100.0	%			100.0	%			100.0	%			100.0	%
Composition of deposits
Noninterest-bearing checking		$	749,129			$	662,295			$	457,743			$	408,404			$	430,925
Interest-bearing checking			1,032,482				1,054,828				779,704				688,699				644,649
Money market			1,136,562				1,074,432				769,291				618,231				502,368
Savings			898,483				985,646				932,133				985,028				986,201
Certificates of deposit			1,045,336				894,630				692,839				646,993				545,003
Total deposits		$	4,861,992			$	4,671,831			$	3,631,710			$	3,347,355			$	3,109,146
Composition percentage of deposits
Noninterest-bearing checking			15.4	%			14.2	%			12.6	%			12.2	%			13.9	%
Interest-bearing checking			21.2	%			22.6	%			21.5	%			20.6	%			20.7	%
Money market			23.4	%			23.0	%			21.2	%			18.5	%			16.2	%
Savings			18.5	%			21.1	%			25.6	%			29.4	%			31.7	%
Certificates of deposit			21.5	%			19.1	%			19.1	%			19.3	%			17.5	%
Total deposits			100.0	%			100.0	%			100.0	%			100.0	%			100.0	%

6

Banc of California, Inc

Average Balance, Average Yield Earned, and Average Cost Paid

(Dollars in thousands)

(Unaudited)

		Three months ended
		March 31, 2015												December 31, 2014												September 30, 2014
		Average Balance				Interest				Yield / Cost				Average Balance				Interest				Yield / Cost				Average Balance				Interest				Yield / Cost
Interest earning assets:
Loans held for sale and SFR mortgage		$	1,868,085			$	17,477				3.79	%		$	1,778,112			$	16,741				3.74	%		$	1,757,890			$	16,979				3.83	%
Seasoned SFR mortgage loan pools			591,724				9,413				6.45	%			606,879				9,605				6.28	%			675,083				11,753				6.91	%
Commercial real estate, multi-family, and construction			1,956,830				22,508				4.66	%			1,486,406				17,993				4.80	%			827,934				9,592				4.60	%
Commercial and industrial, SBA, and lease financing			572,726				7,239				5.13	%			523,194				6,192				4.70	%			451,992				5,060				4.44	%
Other consumer			150,034				1,518				4.10	%			139,837				2,068				5.87	%			116,305				1,171				3.99	%
Gross loans and leases			5,139,399				58,155				4.59	%			4,534,428				52,599				4.60	%			3,829,204				44,555				4.62	%
Securities			354,475				1,927				2.20	%			310,454				1,781				2.28	%			257,067				1,460				2.25	%
Other interest-earning assets			219,892				698				1.29	%			189,091				700				1.47	%			142,284				634				1.77	%
Total interest-earning assets			5,713,766				60,780				4.31	%			5,033,973				55,080				4.34	%			4,228,555				46,649				4.38	%
Allowance for loan and lease losses			(29,623	)											(26,105	)											(23,266	)
BOLI and non-interest earning assets			247,283												215,595												186,234
Total assets		$	5,931,426											$	5,223,463											$	4,391,523
Interest-bearing liabilities:
Savings		$	945,530			$	1,748				0.75	%		$	960,253			$	1,963				0.81	%		$	953,925			$	2,215				0.92	%
Interest-bearing checking			1,042,895				2,041				0.79	%			937,623				2,078				0.88	%			745,635				2,037				1.08	%
Money market			1,092,987				958				0.36	%			964,414				841				0.35	%			681,576				673				0.39	%
Certificates of deposit			1,004,261				1,614				0.65	%			837,174				1,558				0.74	%			688,994				1,240				0.71	%
Total interest-bearing deposits			4,085,673				6,361				0.63	%			3,699,464				6,440				0.69	%			3,070,130				6,165				0.80	%
FHLB advances			487,600				353				0.29	%			307,859				210				0.27	%			276,739				118				0.17	%
Long-term debt and other interest-bearing liabilities			96,379				2,069				8.71	%			98,672				2,099				8.44	%			101,932				2,180				8.48	%
Total interest-bearing liabilities			4,669,652				8,783				0.76	%			4,105,995				8,749				0.85	%			3,448,801				8,463				0.97	%
Noninterest-bearing deposits			682,492												577,623												448,825
Non-interest-bearing liabilities			61,947												52,267												44,505
Total liabilities			5,414,091												4,735,885												3,942,131
Total stockholders’ equity			517,335												487,578												449,392
Total liabilities and stockholders’ equity		$	5,931,426											$	5,223,463											$	4,391,523
Net interest income/spread						$	51,997				3.55	%						$	46,331				3.49	%						$	38,186				3.41	%
Net interest margin											3.69	%											3.65	%											3.58	%
Ratio of interest-earning assets to interest-bearing liabilities			122.36	%											122.60	%											122.61	%
Total deposits		$	4,768,165			$	6,361				0.54	%		$	4,277,087			$	6,440				0.60	%		$	3,518,955			$	6,165				0.70	%
Total funding (1)		$	5,352,144			$	8,783				0.67	%		$	4,683,618			$	8,749				0.76	%		$	3,897,626			$	8,463				0.88	%

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

7

Banc of California, Inc

Average Balance, Average Yield Earned, and Average Cost Paid, Continued

(Dollars in thousands)

(Unaudited)

		Three months ended
		June 30, 2014												March 31, 2014
		Average Balance				Interest				Yield / Cost				Average Balance				Interest				Yield / Cost
Interest earning assets:
Loans held for sale and SFR mortgage		$	1,590,982			$	15,158				3.82	%		$	1,397,650			$	13,391				3.89	%
Seasoned SFR mortgage loan pools			701,006				11,723				6.71	%			751,191				13,072				7.06	%
Commercial real estate, multi-family, and construction			734,472				8,689				4.75	%			684,063				8,220				4.87	%
Commercial and industrial, SBA, and lease financing			418,170				5,413				5.19	%			357,673				5,893				6.68	%
Other consumer			109,063				1,094				4.02	%			99,112				954				3.90	%
Gross loans and leases			3,553,693				42,077				4.75	%			3,289,689				41,530				5.12	%
Securities			168,230				993				2.37	%			163,007				924				2.30	%
Other interest-earning assets			136,849				564				1.65	%			115,396				322				1.13	%
Total interest-earning assets			3,858,772				43,634				4.54	%			3,568,092				42,776				4.86	%
Allowance for loan and lease losses			(20,567	)											(19,392	)
BOLI and non-interest earning assets			196,242												179,470
Total assets		$	4,034,447											$	3,728,170
Interest-bearing liabilities:
Savings		$	990,894			$	2,425				0.98	%		$	966,361			$	2,516				1.06	%
Interest-bearing checking			660,341				1,864				1.13	%			593,126				1,715				1.17	%
Money market			603,917				639				0.42	%			515,131				572				0.45	%
Certificates of deposit			600,498				1,143				0.76	%			518,266				932				0.73	%
Total interest-bearing deposits			2,855,650				6,071				0.85	%			2,592,884				5,735				0.90	%
FHLB advances			226,429				99				0.18	%			259,611				100				0.16	%
Long-term debt and other interest-bearing liabilities			93,345				1,889				8.12	%			91,020				1,756				7.82	%
Total interest-bearing liabilities			3,175,424				8,059				1.02	%			2,943,515				7,591				1.05	%
Noninterest-bearing deposits			428,221												416,074
Non-interest-bearing liabilities			45,704												38,964
Total liabilities			3,649,349												3,398,553
Total stockholders’ equity			385,098												329,617
Total liabilities and stockholders’ equity		$	4,034,447											$	3,728,170
Net interest income/spread						$	35,575				3.52	%						$	35,185				3.81	%
Net interest margin											3.70	%											4.00	%
Ratio of interest-earning assets to interest-bearing liabilities			121.52	%											121.22	%
Total deposits		$	3,283,871			$	6,071				0.74	%		$	3,008,958			$	5,735				0.77	%
Total funding (1)		$	3,603,645			$	8,059				0.90	%		$	3,359,589			$	7,591				0.92	%

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

8

Banc of California, Inc

Capital Ratios

(Unaudited)

		March 31, 2015 (1)				December 31, 2014				September 30, 2014				June 30, 2014				March 31, 2014
Capital Ratios:
Banc of California, Inc.
Total risk-based capital ratio:			11.58	%			11.28	%			14.97	%			15.19	%			11.93	%
Tier 1 risk-based capital ratio:			10.86	%			10.54	%			14.03	%			14.10	%			10.86	%
Common equity tier 1 capital ratio (1)			9.04	%			N/A				N/A				N/A				N/A
Tier 1 leverage ratio:			8.02	%			8.57	%			9.28	%			9.89	%			7.59	%
Banc of California, NA
Total risk-based capital ratio:			13.61	%			12.04	%			15.75	%			14.88	%			14.52	%
Tier 1 risk-based capital ratio:			12.89	%			11.29	%			14.80	%			13.79	%			13.45	%
Common equity tier 1 capital ratio (1)			12.89	%			N/A				N/A				N/A				N/A
Tier 1 leverage ratio:			9.51	%			9.17	%			9.80	%			9.72	%			9.41	%

(1) From the first quarter of 2015, BASEL III common equity tier 1 capital ratio is required.

9

Banc of California, Inc

Non-GAAP Measures

(Dollars in thousands, except per share data)

(Unaudited)

Non-GAAP performance measure:

Tangible common equity to tangible assets ratio and return on average tangible common equity are supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP measures are used by management in the analysis of Banc of California, Inc.’s capital strength and performance of businesses. Tangible equity is calculated by subtracting goodwill and other intangible assets from total stockholders’ equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from total stockholders’ equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Banc of California, Inc. This disclosure should not be viewed as a substitution for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

The following tables reconcile this non-GAAP performance measures to the GAAP performance measures for the periods indicated:

		March 31, 2015				December 31, 2014				September 30, 2014				June 30, 2014				March 31, 2014
Tangible common equity to tangible assets ratio
Total assets		$	6,097,355			$	5,971,297			$	4,537,826			$	4,386,331			$	4,030,465
Less goodwill			(31,591	)			(31,591	)			(31,591	)			(32,150	)			(32,868	)
Less other intangible assets			(23,708	)			(25,252	)			(10,829	)			(10,959	)			(11,213	)
Tangible assets		$	6,042,056			$	5,914,454			$	4,495,406			$	4,343,222			$	3,986,384
Total stockholders’ equity		$	514,160			$	503,315			$	446,711			$	439,127			$	325,157
Less preferred stock			(79,877	)			(79,877	)			(79,877	)			(79,877	)			(79,877	)
Less goodwill			(31,591	)			(31,591	)			(31,591	)			(32,150	)			(32,868	)
Less other intangible assets			(23,708	)			(25,252	)			(10,829	)			(10,959	)			(11,213	)
Tangible common equity		$	378,984			$	366,595			$	324,414			$	316,141			$	201,199
Total stockholders’ equity to total assets			8.43	%			8.43	%			9.84	%			10.01	%			8.07	%
Tangible common equity to tangible assets			6.27	%			6.20	%			7.22	%			7.28	%			5.05	%
Common stock outstanding			35,063,199				34,190,740				28,023,701				27,032,464				19,666,469
Class B non-voting non-convertible common stock outstanding			11				609,195				602,783				596,018				590,068
Total common stock outstanding			35,063,210				34,799,935				28,626,484				27,628,482				20,256,537
Minimum number of shares issuable under purchase contracts (1)			2,984,367				3,215,538				4,198,425				5,101,326				—
Total common stock outstanding and shares issuable under purchase contracts			38,047,577				38,015,473				32,824,909				32,729,808				20,256,537
(1)    Purchase contracts relating to the tangible equity units
Tangible common equity per common stock		$	10.81			$	10.53			$	11.33			$	11.44			$	9.93
Book value per common stock		$	12.39			$	12.17			$	12.81			$	13.00			$	12.11
Tangible equity per common stock and shares issuable under purchase contracts		$	9.96			$	9.64			$	9.88			$	9.66			$	9.93
Book value per common stock and shares issuable under purchase contracts		$	11.41			$	11.14			$	11.18			$	10.98			$	12.11

10

Banc of California, Inc

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

		Three months ended
		March 31, 2015				December 31, 2014				September 30, 2014				June 30, 2014				March 31, 2014
Return on tangible common equity
Average total stockholders’ equity		$	517,335			$	487,578			$	449,392			$	385,098			$	329,617
Less average preferred stock			(79,877	)			(79,877	)			(79,877	)			(79,877	)			(79,877	)
Less average goodwill			(31,591	)			(33,129	)			(32,209	)			(33,020	)			(30,923	)
Less average other intangible assets			(24,720	)			(13,611	)			(10,634	)			(10,871	)			(11,832	)
Average tangible common equity		$	381,147			$	360,961			$	326,672			$	261,330			$	206,985
Net income		$	12,574			$	10,110			$	11,247			$	8,099			$	749
Less preferred stock dividends			(910	)			(910	)			(910	)			(910	)			(910	)
Add tax-effected amortization of intangible assets (1)			1,004				849				579				614				610
Add tax-effected impairment on intangible assets (1)			—				31				—				—				—
Net income (loss) available to common stockholders		$	12,668			$	10,080			$	10,916			$	7,803			$	449
(1)    Utilized a 35% effective tax rate
Return on average equity			9.86	%			8.23	%			9.93	%			8.44	%			0.92	%
Return on average tangible common equity			13.48	%			11.08	%			13.26	%			11.98	%			0.88	%

11