EX-99.1 2 d582344dex991.htm EX-99.1

Exhibit 99.1

Banc of California Reports First Quarter 2018 Earnings

SANTA ANA, Calif., (April 27, 2018) – Banc of California, Inc. (NYSE: BANC) today reported net income available to common stockholders of $3.4 million, for the first quarter of 2018, resulting in diluted earnings per common share of $0.06 for the quarter.

Highlights for the first quarter included:

| • |  | Strong Organic Loan Growth: Held for investment loans increased by $271 million, or 4%, during the quarter to $6.9 billion, representing a 16% annualized growth rate.

| • |  | Gross loan commitment originations totaled $867 million for the first quarter at an average production yield of 4.99%.

| • |  | Stabilization of Core Deposit Balances: Stabilized the deposit base and completed the run-off of legacy high-rate, high-volatility deposit balances, which comprised $207 million of deposit outflows in the first quarter. Core deposit balances increased by $55 million and brokered deposit balances declined by $31 million, which coupled with the legacy run-off, drove total reported deposit balances down by $183 million during the first quarter.

| • |  | Continuation of Balance Sheet Re-Mix: Reduced securities by $151 million, or 6%, driven by the sale of all remaining master limited partnership debt securities (“MLPs”) totaling $77 million and the sale of $103 million of commercial mortgage-backed securities (“CMBS”). Additionally, the Company completed the sale of $26 million of mortgage servicing rights (“MSRs”) during the first quarter, which resulted in $2.3 million of expenses which are reflected in all other income and a $1.8 million benefit from the release of the associated loan repurchase reserve.

| • |  | Bolstered Talent: Added key leadership talent including Kris Gagnon as Chief Credit Officer and Leticia Aguilar as Head of Community Banking. Executing on hiring and talent plan to support deposit growth initiatives including commercial deposit and treasury management sales and product leadership, Commercial Banking Los Angeles Market Executive and team, and bolstered Commercial Banking and Private Banking teams in San Diego.

| • |  | Disciplined Expense Management: First quarter noninterest expense totaled $59.8 million.

| • |  | Credit and Charge-offs: Net charge-offs totaled $14.1 million for the first quarter, primarily driven by the previously announced $13.9 million fraudulent credit. Our review of the underwriting process for this loan continues but, based upon our review to date, we believe this loan involved an isolated event of external fraud. Provision for loan and lease losses was $19.5 million for the quarter, primarily driven by the single credit described above, and excluding this item, provision expense was $5.6 million. Non-performing assets to total assets were 0.22% at quarter end, compared to 0.21% at the prior quarter end, and compared to 0.18% a year ago. The ALLL / total loan ratio was 0.79% at quarter end, up from 0.74% at the prior quarter end and up from 0.70% a year ago.

| • |  | Strong Capital Ratios: Common equity tier 1 capital ratio of 9.8%, compared to 9.4% a year ago.

The Company’s first quarter reported financial results included non-recurring expense items, which included $4.4 million of legal and professional fees, a $0.7 million recovery of legal settlement expense reflected in all other expense, $0.9 million benefit to salaries from the reversal of a portion of the 2017 bonus accrual, and $1.8 million of release of the loan repurchase reserve as a result of the sale of MSRs in the quarter. The net impact of these items totaled $1.0 million of net, nonrecurring expenses for the quarter.

“The first quarter marked another important step in our transformation as we continued to re-mix the balance sheet by lowering securities balances and increasing core lending activities,” said Doug Bowers, President and Chief Executive Officer of Banc of California. “We have now completed the sale of all MLP debt securities, have started to work down our CMBS portfolio, and we completed the sale of the majority of our mortgage servicing rights. All of these activities we believe lower our overall risk profile, reduce volatility on the balance sheet, and focus us ever more so on core commercial banking activities. On the deposit front, core deposit balances increased modestly from year-end as we reduced our brokered deposit balances, and completed the reduction of legacy high-rate, high-volatility deposit balances we had discussed over the past few quarters. We saw substantial hiring momentum in the first quarter to support our plan, namely around core deposit generation initiatives. At the same time, we continued to be diligent around expense management as we invest in adding front-line bankers and teams.”

3 MacArthur Place ● Santa Ana, CA 92707 ● (949) 236-5250 ● www.bancofcal.com

The Company will host a conference call to discuss its first quarter 2018 financial results at 7:00 a.m. Pacific Time (PT) on Friday, April 27, 2018. Interested parties are welcome to attend the conference call by dialing 888-317-6003, and referencing event code 1373989. A live audio webcast will also be available and the webcast link will be posted on the Company’s Investor Relations website at www.bancofcal.com/investor. The slide presentation for the call will also be available on the Company’s Investor Relations website prior to the call.

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) provides comprehensive banking services to California’s diverse businesses, entrepreneurs and communities. Banc of California operates 34 offices 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. |  | Abernathy MacGregor
Timothy Sedabres, (855) 361-2262 |  | Ian Campbell / James Bourne / Sarah Dhanaphatana, (213) 630-6550 idc@abmac.com / jab@abmac.com / skd@abmac.com

- 2 -

Banc of California, Inc.

Consolidated Statements of Financial Condition

(Dollars in thousands)

(Unaudited)

|  | March 31, 2018 |  |  | December 31, 2017 |  |  | September 30, 2017 |  |  | June 30, 2017 |  |  | March 31, 2017 |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 346,704 |  |  | $ | 387,699 |  |  | $ | 611,826 |  |  | $ | 511,190 |  |  | $ | 409,281 |
Time deposits in financial institutions |  |  | — |  |  |  | — |  |  |  | 1,000 |  |  |  | 1,000 |  |  |  | 1,000 |
Securities available-for-sale |  |  | 2,424,593 |  |  |  | 2,575,469 |  |  |  | 2,755,664 |  |  |  | 2,915,103 |  |  |  | 2,434,541 |
Securities held-to-maturity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 863,269 |
Loans held-for-sale |  |  | 20,180 |  |  |  | 67,069 |  |  |  | 50,130 |  |  |  | 278,824 |  |  |  | 228,196 |
Loans and leases receivable |  |  | 6,930,507 |  |  |  | 6,659,407 |  |  |  | 6,226,897 |  |  |  | 5,956,337 |  |  |  | 6,105,321 |
Allowance for loan and lease losses |  |  | (54,763 | ) |  |  | (49,333 | ) |  |  | (45,072 | ) |  |  | (42,385 | ) |  |  | (42,736 | )
Federal Home Loan Bank and other bank stock |  |  | 82,715 |  |  |  | 75,654 |  |  |  | 67,063 |  |  |  | 63,438 |  |  |  | 63,238 |
Servicing rights, net |  |  | 6,739 |  |  |  | 33,708 |  |  |  | 40,448 |  |  |  | 43,834 |  |  |  | 44,451 |
Other real estate owned, net |  |  | 1,024 |  |  |  | 1,796 |  |  |  | 3,682 |  |  |  | 3,267 |  |  |  | 3,345 |
Premises and equipment, net |  |  | 135,198 |  |  |  | 135,699 |  |  |  | 139,326 |  |  |  | 143,398 |  |  |  | 146,631 |
Investments in alternative energy partnerships, net |  |  | 48,344 |  |  |  | 48,826 |  |  |  | 43,817 |  |  |  | 37,605 |  |  |  | 47,633 |
Goodwill |  |  | 37,144 |  |  |  | 37,144 |  |  |  | 37,144 |  |  |  | 37,144 |  |  |  | 37,144 |
Other intangible assets, net |  |  | 8,510 |  |  |  | 9,353 |  |  |  | 10,219 |  |  |  | 11,135 |  |  |  | 12,191 |
Deferred income tax, net |  |  | 43,192 |  |  |  | 31,074 |  |  |  | 23,333 |  |  |  | 9,499 |  |  |  | 18,673 |
Income tax receivable |  |  | 10,126 |  |  |  | 8,739 |  |  |  | 7,699 |  |  |  | 14,984 |  |  |  | 15,973 |
Bank owned life insurance investment |  |  | 105,384 |  |  |  | 104,851 |  |  |  | 104,292 |  |  |  | 103,709 |  |  |  | 103,093 |
Other assets |  |  | 153,834 |  |  |  | 161,797 |  |  |  | 142,985 |  |  |  | 113,534 |  |  |  | 128,036 |
Assets of discontinued operations |  |  | 29,888 |  |  |  | 38,900 |  |  |  | 59,575 |  |  |  | 164,152 |  |  |  | 432,805 |
Total assets |  | $ | 10,329,319 |  |  | $ | 10,327,852 |  |  | $ | 10,280,028 |  |  | $ | 10,365,768 |  |  | $ | 11,052,085 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits |  | $ | 1,039,116 |  |  | $ | 1,071,608 |  |  | $ | 1,075,782 |  |  | $ | 1,138,095 |  |  | $ | 1,273,649 |
Interest-bearing deposits |  |  | 6,071,049 |  |  |  | 6,221,295 |  |  |  | 6,327,811 |  |  |  | 6,906,816 |  |  |  | 7,324,044 |
Total deposits |  |  | 7,110,165 |  |  |  | 7,292,903 |  |  |  | 7,403,593 |  |  |  | 8,044,911 |  |  |  | 8,597,693 |
Advances from Federal Home Loan Bank |  |  | 1,905,000 |  |  |  | 1,695,000 |  |  |  | 1,470,000 |  |  |  | 870,000 |  |  |  | 1,080,000 |
Securities sold under repurchase agreements |  |  | — |  |  |  | — |  |  |  | 36,520 |  |  |  | 53,242 |  |  |  | 26,320 |
Other borrowings |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 67,981 |
Notes payable, net |  |  | 172,966 |  |  |  | 172,941 |  |  |  | 172,865 |  |  |  | 172,790 |  |  |  | 174,090 |
Reserve for loss on repurchased loans |  |  | 3,426 |  |  |  | 6,306 |  |  |  | 6,173 |  |  |  | 8,028 |  |  |  | 8,118 |
Income taxes payable |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 618 |
Due on unsettled securities purchases |  |  | 59,000 |  |  |  | — |  |  |  | 54,500 |  |  |  | 116,090 |  |  |  | — |
Accrued expenses and other liabilities |  |  | 84,997 |  |  |  | 140,575 |  |  |  | 109,969 |  |  |  | 77,186 |  |  |  | 81,208 |
Liabilities of discontinued operations |  |  | 9 |  |  |  | 7,819 |  |  |  | 12,500 |  |  |  | 17,229 |  |  |  | 30,309 |
Total liabilities |  |  | 9,335,563 |  |  |  | 9,315,544 |  |  |  | 9,266,120 |  |  |  | 9,359,476 |  |  |  | 10,066,337 |
Commitments and contingent liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock |  |  | 269,071 |  |  |  | 269,071 |  |  |  | 269,071 |  |  |  | 269,071 |  |  |  | 269,071 |
Common stock |  |  | 517 |  |  |  | 517 |  |  |  | 542 |  |  |  | 540 |  |  |  | 537 |
Common stock, class B non-voting non-convertible |  |  | 5 |  |  |  | 5 |  |  |  | 4 |  |  |  | 4 |  |  |  | 3 |
Additional paid-in capital |  |  | 623,483 |  |  |  | 621,435 |  |  |  | 619,849 |  |  |  | 616,251 |  |  |  | 614,983 |
Retained earnings |  |  | 141,008 |  |  |  | 144,839 |  |  |  | 145,420 |  |  |  | 140,331 |  |  |  | 139,926 |
Treasury stock |  |  | (28,786 | ) |  |  | (28,786 | ) |  |  | (28,786 | ) |  |  | (28,786 | ) |  |  | (29,070 | )
Accumulated other comprehensive income/(loss), net |  |  | (11,542 | ) |  |  | 5,227 |  |  |  | 7,808 |  |  |  | 8,881 |  |  |  | (9,702 | )
Total stockholders’ equity |  |  | 993,756 |  |  |  | 1,012,308 |  |  |  | 1,013,908 |  |  |  | 1,006,292 |  |  |  | 985,748 |
Total liabilities and stockholders’ equity |  | $ | 10,329,319 |  |  | $ | 10,327,852 |  |  | $ | 10,280,028 |  |  | $ | 10,365,768 |  |  | $ | 11,052,085 |

1

Banc of California, Inc.

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

(Unaudited)

|  | Three Months Ended |
|  | March 31, 2018 |  |  | December 31, 2017 |  |  | September 30, 2017 |  |  | June 30, 2017 |  |  | March 31, 2017 |
Interest and dividend income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans, including fees |  | $ | 74,912 |  |  | $ | 71,695 |  |  | $ | 70,208 |  |  | $ | 69,661 |  |  | $ | 69,507 |
Securities |  |  | 21,631 |  |  |  | 23,170 |  |  |  | 24,337 |  |  |  | 24,996 |  |  |  | 27,239 |
Other interest-earning assets |  |  | 2,164 |  |  |  | 2,292 |  |  |  | 2,206 |  |  |  | 1,783 |  |  |  | 2,096 |
Total interest and dividend income |  |  | 98,707 |  |  |  | 97,157 |  |  |  | 96,751 |  |  |  | 96,440 |  |  |  | 98,842 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  | 16,795 |  |  |  | 16,044 |  |  |  | 15,468 |  |  |  | 14,942 |  |  |  | 13,960 |
Federal Home Loan Bank advances |  |  | 7,392 |  |  |  | 5,402 |  |  |  | 3,352 |  |  |  | 2,774 |  |  |  | 1,423 |
Securities sold under repurchase agreements |  |  | 750 |  |  |  | 194 |  |  |  | 500 |  |  |  | 180 |  |  |  | 6 |
Notes payable and other interest-bearing liabilities |  |  | 2,332 |  |  |  | 2,344 |  |  |  | 2,395 |  |  |  | 3,044 |  |  |  | 2,972 |
Total interest expense |  |  | 27,269 |  |  |  | 23,984 |  |  |  | 21,715 |  |  |  | 20,940 |  |  |  | 18,361 |
Net interest income |  |  | 71,438 |  |  |  | 73,173 |  |  |  | 75,036 |  |  |  | 75,500 |  |  |  | 80,481 |
Provision for loan and lease losses |  |  | 19,499 |  |  |  | 5,052 |  |  |  | 3,561 |  |  |  | 2,503 |  |  |  | 2,583 |
Net interest income after provision for loan and lease losses |  |  | 51,939 |  |  |  | 68,121 |  |  |  | 71,475 |  |  |  | 72,997 |  |  |  | 77,898 |
Noninterest income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer service fees |  |  | 1,592 |  |  |  | 1,624 |  |  |  | 1,576 |  |  |  | 1,669 |  |  |  | 1,623 |
Loan servicing income (loss) |  |  | 2,311 |  |  |  | (2,416 | ) |  |  | 553 |  |  |  | 132 |  |  |  | 2,756 |
Net gain on sale of securities available for sale |  |  | 5,241 |  |  |  | 2,688 |  |  |  | 7,625 |  |  |  | 1,099 |  |  |  | 3,356 |
Net gain (loss) on sale of loans |  |  | (41 | ) |  |  | 1,205 |  |  |  | 5,735 |  |  |  | 983 |  |  |  | 4,019 |
All other income |  |  | (521 | ) |  |  | 2,594 |  |  |  | 2,876 |  |  |  | 1,824 |  |  |  | 3,149 |
Total noninterest income |  |  | 8,582 |  |  |  | 5,695 |  |  |  | 18,365 |  |  |  | 5,707 |  |  |  | 14,903 |
Noninterest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and employee benefits |  |  | 31,115 |  |  |  | 33,146 |  |  |  | 30,216 |  |  |  | 33,348 |  |  |  | 32,443 |
Occupancy and equipment |  |  | 7,687 |  |  |  | 9,565 |  |  |  | 10,085 |  |  |  | 9,776 |  |  |  | 10,668 |
Professional fees |  |  | 9,177 |  |  |  | 7,853 |  |  |  | 7,697 |  |  |  | 11,794 |  |  |  | 15,073 |
Data processing |  |  | 1,656 |  |  |  | 1,562 |  |  |  | 1,901 |  |  |  | 2,246 |  |  |  | 2,179 |
Advertising |  |  | 3,277 |  |  |  | 1,420 |  |  |  | 1,051 |  |  |  | 1,117 |  |  |  | 1,725 |
Regulatory assessments |  |  | 2,092 |  |  |  | 2,174 |  |  |  | 2,350 |  |  |  | 1,140 |  |  |  | 2,441 |
Reversal of provision for loan repurchases |  |  | (1,788 | ) |  |  | (335 | ) |  |  | (749 | ) |  |  | (403 | ) |  |  | (325 | )
Amortization of intangible assets |  |  | 843 |  |  |  | 866 |  |  |  | 916 |  |  |  | 1,056 |  |  |  | 1,090 |
Restructuring expense |  |  | — |  |  |  | (43 | ) |  |  | — |  |  |  | 82 |  |  |  | 5,287 |
All other expenses |  |  | 5,775 |  |  |  | 6,179 |  |  |  | 13,856 |  |  |  | 6,402 |  |  |  | 10,633 |
Total noninterest expense excluding (gain) loss on investments in alternative energy partnerships |  |  | 59,834 |  |  |  | 62,387 |  |  |  | 67,323 |  |  |  | 66,558 |  |  |  | 81,214 |
(Gain) loss on investments in alternative energy partnerships |  |  | (34 | ) |  |  | 3,995 |  |  |  | 8,348 |  |  |  | 9,761 |  |  |  | 8,682 |
Total noninterest expense |  |  | 59,800 |  |  |  | 66,382 |  |  |  | 75,671 |  |  |  | 76,319 |  |  |  | 89,896 |
Income from continuing operations before income taxes |  |  | 721 |  |  |  | 7,434 |  |  |  | 14,169 |  |  |  | 2,385 |  |  |  | 2,905 |
Income tax benefit |  |  | (6,353 | ) |  |  | (3,418 | ) |  |  | (3,939 | ) |  |  | (12,753 | ) |  |  | (6,471 | )
Income from continuing operations |  |  | 7,074 |  |  |  | 10,852 |  |  |  | 18,108 |  |  |  | 15,138 |  |  |  | 9,376 |
Income (loss) from discontinued operations before income taxes |  |  | 2,044 |  |  |  | 765 |  |  |  | (1,958 | ) |  |  | (4,991 | ) |  |  | 13,348 |
Income tax expense (benefit) |  |  | 560 |  |  |  | 315 |  |  |  | (799 | ) |  |  | (2,110 | ) |  |  | 5,523 |
Income (loss) from discontinued operations |  |  | 1,484 |  |  |  | 450 |  |  |  | (1,159 | ) |  |  | (2,881 | ) |  |  | 7,825 |
Net income |  |  | 8,558 |  |  |  | 11,302 |  |  |  | 16,949 |  |  |  | 12,257 |  |  |  | 17,201 |
Preferred stock dividends |  |  | 5,113 |  |  |  | 5,113 |  |  |  | 5,112 |  |  |  | 5,113 |  |  |  | 5,113 |
Net income available to common stockholders |  | $ | 3,445 |  |  | $ | 6,189 |  |  | $ | 11,837 |  |  | $ | 7,144 |  |  | $ | 12,088 |
Basic earnings per total common share |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income from continuing operations |  | $ | 0.03 |  |  | $ | 0.11 |  |  | $ | 0.25 |  |  | $ | 0.20 |  |  | $ | 0.08 |
Income (loss) from discontinued operations |  |  | 0.03 |  |  |  | 0.01 |  |  |  | (0.02 | ) |  |  | (0.06 | ) |  |  | 0.15 |
Net income |  | $ | 0.06 |  |  | $ | 0.12 |  |  | $ | 0.23 |  |  | $ | 0.14 |  |  | $ | 0.23 |
Diluted earnings per total common share |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income from continuing operations |  | $ | 0.03 |  |  | $ | 0.11 |  |  | $ | 0.25 |  |  | $ | 0.20 |  |  | $ | 0.08 |
Income (loss) from discontinued operations |  |  | 0.03 |  |  |  | 0.01 |  |  |  | (0.02 | ) |  |  | (0.06 | ) |  |  | 0.15 |
Net income |  | $ | 0.06 |  |  | $ | 0.12 |  |  | $ | 0.23 |  |  | $ | 0.14 |  |  | $ | 0.23 |
Weighted average number of shares outstanding |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 50,590,545 |  |  |  | 50,532,544 |  |  |  | 50,362,314 |  |  |  | 50,289,590 |  |  |  | 49,991,186 |
Diluted |  |  | 50,925,530 |  |  |  | 50,943,165 |  |  |  | 50,933,358 |  |  |  | 50,942,324 |  |  |  | 50,754,145 |
Dividends declared per common share |  | $ | 0.13 |  |  | $ | 0.13 |  |  | $ | 0.13 |  |  | $ | 0.13 |  |  | $ | 0.13 |

2

Banc of California, Inc.

Reconciliation of Consolidated Statements of Operations between Continuing and Discontinued Operations

(Dollars in thousands, except per share data)

(Unaudited)

|  | Three Months Ended March 31, 2018 |
|  | Continuing Operations |  |  | Discontinued Operations |  |  | Consolidated Operations |
Interest and dividend income |  | $ | 98,707 |  |  | $ | 186 |  |  | $ | 98,893 |
Interest expense |  |  | 27,269 |  |  |  | — |  |  |  | 27,269 |
Net interest income |  |  | 71,438 |  |  |  | 186 |  |  |  | 71,624 |
Provision for loan and lease losses |  |  | 19,499 |  |  |  | — |  |  |  | 19,499 |
Net interest income after provision for loan and lease losses |  |  | 51,939 |  |  |  | 186 |  |  |  | 52,125 |
Noninterest income |  |  |  |  |  |  |  |  |  |  |  |
Customer service fees |  |  | 1,592 |  |  |  | — |  |  |  | 1,592 |
Loan servicing income |  |  | 2,311 |  |  |  | — |  |  |  | 2,311 |
Net gain on sale of securities available for sale |  |  | 5,241 |  |  |  | — |  |  |  | 5,241 |
Net loss on sale of loans |  |  | (41 | ) |  |  | — |  |  |  | (41 | )
Mortgage banking income |  |  | — |  |  |  | 232 |  |  |  | 232 |
Gain on disposal of discontinued operations |  |  | — |  |  |  | 1,003 |  |  |  | 1,003 |
All other income |  |  | (521 | ) |  |  | 635 |  |  |  | 114 |
Total noninterest income |  |  | 8,582 |  |  |  | 1,870 |  |  |  | 10,452 |
Noninterest expense |  |  |  |  |  |  |  |  |  |  |  |
Salaries and employee benefits |  |  | 31,115 |  |  |  | 9 |  |  |  | 31,124 |
Occupancy and equipment |  |  | 7,687 |  |  |  | — |  |  |  | 7,687 |
Professional fees |  |  | 9,177 |  |  |  | — |  |  |  | 9,177 |
Data processing |  |  | 1,656 |  |  |  | — |  |  |  | 1,656 |
Advertising |  |  | 3,277 |  |  |  | — |  |  |  | 3,277 |
Regulatory assessments |  |  | 2,092 |  |  |  | — |  |  |  | 2,092 |
Reversal of provision for loan repurchases |  |  | (1,788 | ) |  |  | — |  |  |  | (1,788 | )
Gain on investments in alternative energy partnerships |  |  | (34 | ) |  |  | — |  |  |  | (34 | )
Amortization of intangible assets |  |  | 843 |  |  |  | — |  |  |  | 843 |
All other expenses |  |  | 5,775 |  |  |  | 3 |  |  |  | 5,778 |
Total noninterest expense |  |  | 59,800 |  |  |  | 12 |  |  |  | 59,812 |
Income before income taxes |  |  | 721 |  |  |  | 2,044 |  |  |  | 2,765 |
Income tax (benefit) expense |  |  | (6,353 | ) |  |  | 560 |  |  |  | (5,793 | )
Net income |  | $ | 7,074 |  |  | $ | 1,484 |  |  | $ | 8,558 |

3

Banc of California, Inc.

Selected Financial Data

(Dollars in thousands)

(Unaudited)

|  | Three Months Ended |
|  | March 31, 2018 |  |  | December 31, 2017 |  |  | September 30, 2017 |  |  | June 30, 2017 |  |  | March 31, 2017 |
Profitability and other ratios of consolidated operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets (1) |  |  | 0.34 | % |  |  | 0.44 | % |  |  | 0.67 | % |  |  | 0.46 | % |  |  | 0.62 | %
Return on average equity (1) |  |  | 3.40 | % |  |  | 4.42 | % |  |  | 6.69 | % |  |  | 4.85 | % |  |  | 6.96 | %
Return on average tangible common equity (2) |  |  | 2.37 | % |  |  | 3.84 | % |  |  | 7.16 | % |  |  | 4.51 | % |  |  | 7.76 | %
Dividend payout ratio (3) |  |  | 216.67 | % |  |  | 108.33 | % |  |  | 56.52 | % |  |  | 92.86 | % |  |  | 56.52 | %
Net interest spread |  |  | 2.74 | % |  |  | 2.79 | % |  |  | 2.92 | % |  |  | 2.90 | % |  |  | 3.03 | %
Net interest margin (1) |  |  | 2.98 | % |  |  | 3.01 | % |  |  | 3.15 | % |  |  | 3.09 | % |  |  | 3.19 | %
Noninterest income to total revenue (4) |  |  | 12.73 | % |  |  | 8.07 | % |  |  | 19.86 | % |  |  | 20.20 | % |  |  | 41.62 | %
Noninterest income to average total assets (1) |  |  | 0.41 | % |  |  | 0.25 | % |  |  | 0.74 | % |  |  | 0.74 | % |  |  | 2.16 | %
Noninterest expense to average total assets (1) |  |  | 2.36 | % |  |  | 2.59 | % |  |  | 3.10 | % |  |  | 3.68 | % |  |  | 4.52 | %
Efficiency ratio (5) |  |  | 72.87 | % |  |  | 83.37 | % |  |  | 83.36 | % |  |  | 100.10 | % |  |  | 86.87 | %
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships (2) , (5) |  |  | 65.70 | % |  |  | 75.46 | % |  |  | 72.49 | % |  |  | 80.51 | % |  |  | 78.76 | %
Average held-for-investment loans and leases to average deposits |  |  | 94.87 | % |  |  | 86.09 | % |  |  | 77.33 | % |  |  | 73.54 | % |  |  | 68.33 | %
Average investment securities to average total assets |  |  | 24.60 | % |  |  | 26.10 | % |  |  | 27.64 | % |  |  | 28.09 | % |  |  | 30.18 | %
Average stockholders’ equity to average total assets |  |  | 9.94 | % |  |  | 9.98 | % |  |  | 9.95 | % |  |  | 9.48 | % |  |  | 8.95 | %
Allowance for loan and lease losses (ALLL) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 49,333 |  |  | $ | 45,072 |  |  | $ | 42,385 |  |  | $ | 42,736 |  |  | $ | 40,444 |
Loans and leases charged off |  |  | (14,639 | ) |  |  | (1,367 | ) |  |  | (959 | ) |  |  | (2,898 | ) |  |  | (357 | )
Recoveries |  |  | 570 |  |  |  | 576 |  |  |  | 85 |  |  |  | 44 |  |  |  | 66 |
Provision for loan and lease losses |  |  | 19,499 |  |  |  | 5,052 |  |  |  | 3,561 |  |  |  | 2,503 |  |  |  | 2,583 |
Balance at end of period |  | $ | 54,763 |  |  | $ | 49,333 |  |  | $ | 45,072 |  |  | $ | 42,385 |  |  | $ | 42,736 |
Annualized net loan charge-offs to average total loans and leases held-for-investment |  |  | 0.84 | % |  |  | 0.05 | % |  |  | 0.06 | % |  |  | 0.19 | % |  |  | 0.02 | %
Reserve for loss on repurchased loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 6,306 |  |  | $ | 6,173 |  |  | $ | 8,028 |  |  | $ | 8,118 |  |  | $ | 7,974 |
Provision (reversal) for loan repurchases |  |  | (1,786 | ) |  |  | (326 | ) |  |  | (651 | ) |  |  | 270 |  |  |  | 517 |
Utilization of reserve for loan repurchases |  |  | (1,094 | ) |  |  | (301 | ) |  |  | (1,204 | ) |  |  | (360 | ) |  |  | (373 | )
Other adjustments |  |  | — |  |  |  | 760 |  |  |  | — |  |  |  | — |  |  |  | — |
Balance at end of period |  | $ | 3,426 |  |  | $ | 6,306 |  |  | $ | 6,173 |  |  | $ | 8,028 |  |  | $ | 8,118 |

(1) | Ratios are presented on an annualized basis.

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

(3) | The ratio is calculated by dividing dividends declared per common share by basic earnings per share

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

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

4

Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

|  | March 31, 2018 |  |  | December 31, 2017 |  |  | September 30, 2017 |  |  | June 30, 2017 |  |  | March 31, 2017 |
Asset quality information and ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Delinquent loans and leases held-for-investment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
30 to 89 days delinquent, excluding purchased credit impaired (PCI) loans |  | $ | 31,936 |  |  | $ | 32,087 |  |  | $ | 20,286 |  |  | $ | 23,305 |  |  | $ | 22,596 |
90+ days delinquent, excluding PCI loans |  |  | 11,526 |  |  |  | 9,542 |  |  |  | 11,150 |  |  |  | 6,508 |  |  |  | 9,802 |
Total delinquent loans, excluding PCI loans |  |  | 43,462 |  |  |  | 41,629 |  |  |  | 31,436 |  |  |  | 29,813 |  |  |  | 32,398 |
PCI loans, 30 to 89 days delinquent |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 343 |  |  |  | 16,410 |
PCI loans, 90+ days delinquent |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 807 |  |  |  | 4,943 |
Total delinquent PCI loans |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,150 |  |  |  | 21,353 |
Total delinquent loans |  | $ | 43,462 |  |  | $ | 41,629 |  |  | $ | 31,436 |  |  | $ | 30,963 |  |  | $ | 53,751 |
Total delinquent non-PCI loans to total non-PCI loans |  |  | 0.63 | % |  |  | 0.63 | % |  |  | 0.50 | % |  |  | 0.50 | % |  |  | 0.54 | %
Total delinquent loans and leases to total loans and leases |  |  | 0.63 | % |  |  | 0.63 | % |  |  | 0.50 | % |  |  | 0.52 | % |  |  | 0.88 | %
Non-performing assets, excluding loans held-for-sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-performing loans and leases, excluding PCI loans |  | $ | 21,220 |  |  | $ | 19,382 |  |  | $ | 12,275 |  |  | $ | 9,064 |  |  | $ | 16,222 |
90+ days delinquent and still accruing loans and leases, excluding PCI loans |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other real estate owned |  |  | 1,024 |  |  |  | 1,796 |  |  |  | 3,682 |  |  |  | 3,267 |  |  |  | 3,345 |
Non-performing assets |  | $ | 22,244 |  |  | $ | 21,178 |  |  | $ | 15,957 |  |  | $ | 12,331 |  |  | $ | 19,567 |
ALLL to non-performing loans and leases |  |  | 258.07 | % |  |  | 254.53 | % |  |  | 367.19 | % |  |  | 467.62 | % |  |  | 263.44 | %
Non-performing loans and leases to total loans and leases |  |  | 0.31 | % |  |  | 0.29 | % |  |  | 0.20 | % |  |  | 0.15 | % |  |  | 0.27 | %
Non-performing assets to total assets |  |  | 0.22 | % |  |  | 0.21 | % |  |  | 0.16 | % |  |  | 0.12 | % |  |  | 0.18 | %
Troubled debt restructurings (TDRs) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing TDRs |  | $ | 5,787 |  |  | $ | 5,646 |  |  | $ | 5,668 |  |  | $ | 4,579 |  |  | $ | 4,309 |
Non-performing TDRs |  |  | 2,632 |  |  |  | 2,675 |  |  |  | — |  |  |  | 1,125 |  |  |  | 1,144 |
Total TDRs |  | $ | 8,419 |  |  | $ | 8,321 |  |  | $ | 5,668 |  |  | $ | 5,704 |  |  | $ | 5,453 |
Loans and leases and ALLL by loan origination type |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan and lease breakdown by origination type |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Originated loans and leases |  | $ | 6,295,843 |  |  | $ | 5,988,101 |  |  | $ | 5,488,018 |  |  | $ | 5,159,823 |  |  | $ | 5,109,175 |
Acquired loans not impaired at acquisition |  |  | 634,664 |  |  |  | 671,306 |  |  |  | 738,879 |  |  |  | 792,213 |  |  |  | 834,983 |
Seasoned SFR mortgage loan pools - non-impaired |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 21,464 |
Acquired with deteriorated credit quality |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,301 |  |  |  | 139,699 |
Total loans and leases |  | $ | 6,930,507 |  |  | $ | 6,659,407 |  |  | $ | 6,226,897 |  |  | $ | 5,956,337 |  |  | $ | 6,105,321 |
ALLL breakdown by origination type |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Originated loans and leases |  | $ | 53,605 |  |  | $ | 48,110 |  |  | $ | 43,723 |  |  | $ | 41,090 |  |  | $ | 41,221 |
Acquired loans not impaired at acquisition |  |  | 1,158 |  |  |  | 1,223 |  |  |  | 1,349 |  |  |  | 1,271 |  |  |  | 1,234 |
Seasoned SFR mortgage loan pools - non-impaired |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 120 |
Acquired with deteriorated credit quality |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 24 |  |  |  | 161 |
Total ALLL |  | $ | 54,763 |  |  | $ | 49,333 |  |  | $ | 45,072 |  |  | $ | 42,385 |  |  | $ | 42,736 |
Discount on Purchased/Acquired Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Acquired loans not impaired at acquisition |  | $ | 14,255 |  |  | $ | 14,943 |  |  | $ | 15,983 |  |  | $ | 15,446 |  |  | $ | 16,275 |
Seasoned SFR mortgage loan pools - non-impaired |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,219 |
Acquired with deteriorated credit quality |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,754 |  |  |  | 21,538 |
Total Discount |  | $ | 14,255 |  |  | $ | 14,943 |  |  | $ | 15,983 |  |  | $ | 17,200 |  |  | $ | 39,032 |
Percentage of ALLL to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Originated loans and leases: |  |  | 0.85 | % |  |  | 0.80 | % |  |  | 0.80 | % |  |  | 0.80 | % |  |  | 0.81 | %
Originated loans and leases and acquired loans not impaired at acquisition: |  |  | 0.79 | % |  |  | 0.74 | % |  |  | 0.72 | % |  |  | 0.71 | % |  |  | 0.71 | %
Total loans and leases |  |  | 0.79 | % |  |  | 0.74 | % |  |  | 0.72 | % |  |  | 0.71 | % |  |  | 0.70 | %

5

Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

|  | March 31, 2018 |  |  | December 31, 2017 |  |  | September 30, 2017 |  |  | June 30, 2017 |  |  | March 31, 2017 |
Composition of held-for-investment loans and leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | $ | 773,193 |  |  | $ | 717,415 |  |  | $ | 713,120 |  |  | $ | 716,771 |  |  | $ | 750,592 |
Multifamily |  |  | 1,944,082 |  |  |  | 1,816,141 |  |  |  | 1,617,890 |  |  |  | 1,545,888 |  |  |  | 1,449,715 |
Construction |  |  | 200,766 |  |  |  | 182,960 |  |  |  | 176,397 |  |  |  | 156,246 |  |  |  | 142,164 |
Commercial and industrial |  |  | 1,638,559 |  |  |  | 1,701,951 |  |  |  | 1,602,805 |  |  |  | 1,560,916 |  |  |  | 1,585,656 |
SBA |  |  | 79,022 |  |  |  | 78,699 |  |  |  | 78,604 |  |  |  | 77,254 |  |  |  | 76,040 |
Lease financing |  |  | 3 |  |  |  | 13 |  |  |  | 91 |  |  |  | 173 |  |  |  | 285 |
Total commercial loans |  |  | 4,635,625 |  |  |  | 4,497,179 |  |  |  | 4,188,907 |  |  |  | 4,057,248 |  |  |  | 4,004,452 |
Single family residential mortgage |  |  | 2,201,358 |  |  |  | 2,055,649 |  |  |  | 1,920,310 |  |  |  | 1,778,536 |  |  |  | 1,975,055 |
Other consumer |  |  | 93,524 |  |  |  | 106,579 |  |  |  | 117,680 |  |  |  | 120,553 |  |  |  | 125,814 |
Total consumer loans |  |  | 2,294,882 |  |  |  | 2,162,228 |  |  |  | 2,037,990 |  |  |  | 1,899,089 |  |  |  | 2,100,869 |
Total gross loans and leases |  | $ | 6,930,507 |  |  | $ | 6,659,407 |  |  | $ | 6,226,897 |  |  | $ | 5,956,337 |  |  | $ | 6,105,321 |
Composition percentage of held-for-investment loans and leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  | 11.2 | % |  |  | 10.8 | % |  |  | 11.5 | % |  |  | 12.0 | % |  |  | 12.3 | %
Multifamily |  |  | 28.1 | % |  |  | 27.3 | % |  |  | 26.0 | % |  |  | 26.0 | % |  |  | 23.7 | %
Construction |  |  | 2.9 | % |  |  | 2.7 | % |  |  | 2.8 | % |  |  | 2.6 | % |  |  | 2.3 | %
Commercial and industrial |  |  | 23.6 | % |  |  | 25.5 | % |  |  | 25.7 | % |  |  | 26.2 | % |  |  | 26.1 | %
SBA |  |  | 1.1 | % |  |  | 1.2 | % |  |  | 1.3 | % |  |  | 1.3 | % |  |  | 1.2 | %
Lease financing |  |  | 0.0 | % |  |  | 0.0 | % |  |  | 0.0 | % |  |  | 0.0 | % |  |  | 0.0 | %
Total commercial loans |  |  | 66.9 | % |  |  | 67.5 | % |  |  | 67.3 | % |  |  | 68.1 | % |  |  | 65.6 | %
Single family residential mortgage |  |  | 31.8 | % |  |  | 30.9 | % |  |  | 30.8 | % |  |  | 29.9 | % |  |  | 32.3 | %
Other consumer |  |  | 1.3 | % |  |  | 1.6 | % |  |  | 1.9 | % |  |  | 2.0 | % |  |  | 2.1 | %
Total consumer loans |  |  | 33.1 | % |  |  | 32.5 | % |  |  | 32.7 | % |  |  | 31.9 | % |  |  | 34.4 | %
Total gross loans and leases |  |  | 100.0 | % |  |  | 100.0 | % |  |  | 100.0 | % |  |  | 100.0 | % |  |  | 100.0 | %
Composition of deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing checking |  | $ | 1,039,116 |  |  | $ | 1,071,608 |  |  | $ | 1,075,782 |  |  | $ | 1,138,095 |  |  | $ | 1,273,649 |
Interest-bearing checking |  |  | 1,864,629 |  |  |  | 2,089,016 |  |  |  | 2,011,943 |  |  |  | 2,058,130 |  |  |  | 1,998,778 |
Money market |  |  | 1,091,735 |  |  |  | 1,146,859 |  |  |  | 1,728,937 |  |  |  | 2,265,380 |  |  |  | 2,610,376 |
Savings |  |  | 1,051,267 |  |  |  | 1,059,628 |  |  |  | 945,699 |  |  |  | 985,001 |  |  |  | 1,008,218 |
Certificates of deposit |  |  | 2,063,418 |  |  |  | 1,925,792 |  |  |  | 1,641,232 |  |  |  | 1,598,305 |  |  |  | 1,706,672 |
Total deposits |  | $ | 7,110,165 |  |  | $ | 7,292,903 |  |  | $ | 7,403,593 |  |  | $ | 8,044,911 |  |  | $ | 8,597,693 |
Composition percentage of deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing checking |  |  | 14.6 | % |  |  | 14.7 | % |  |  | 14.5 | % |  |  | 14.1 | % |  |  | 14.8 | %
Interest-bearing checking |  |  | 26.2 | % |  |  | 28.7 | % |  |  | 27.2 | % |  |  | 25.6 | % |  |  | 23.2 | %
Money market |  |  | 15.4 | % |  |  | 15.7 | % |  |  | 23.3 | % |  |  | 28.2 | % |  |  | 30.4 | %
Savings |  |  | 14.8 | % |  |  | 14.5 | % |  |  | 12.8 | % |  |  | 12.2 | % |  |  | 11.7 | %
Certificates of deposit |  |  | 29.0 | % |  |  | 26.4 | % |  |  | 22.2 | % |  |  | 19.9 | % |  |  | 19.9 | %
Total deposits |  |  | 100.0 | % |  |  | 100.0 | % |  |  | 100.0 | % |  |  | 100.0 | % |  |  | 100.0 | %
Capital Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Banc of California, Inc. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total risk-based capital ratio |  |  | 14.60 | % |  |  | 14.56 | % |  |  | 14.48 | % |  |  | 14.39 | % |  |  | 13.72 | %
Tier 1 risk-based capital ratio |  |  | 13.74 | % |  |  | 13.79 | % |  |  | 13.77 | % |  |  | 13.72 | % |  |  | 13.08 | %
Common equity tier 1 capital ratio |  |  | 9.80 | % |  |  | 9.92 | % |  |  | 9.91 | % |  |  | 9.83 | % |  |  | 9.37 | %
Tier 1 leverage ratio |  |  | 9.21 | % |  |  | 9.39 | % |  |  | 9.55 | % |  |  | 8.93 | % |  |  | 8.51 | %
Banc of California, NA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total risk-based capital ratio |  |  | 16.53 | % |  |  | 16.56 | % |  |  | 16.39 | % |  |  | 16.13 | % |  |  | 15.11 | %
Tier 1 risk-based capital ratio |  |  | 15.67 | % |  |  | 15.78 | % |  |  | 15.68 | % |  |  | 15.45 | % |  |  | 14.48 | %
Common equity tier 1 capital ratio |  |  | 15.67 | % |  |  | 15.78 | % |  |  | 15.68 | % |  |  | 15.45 | % |  |  | 14.48 | %
Tier 1 leverage ratio |  |  | 10.50 | % |  |  | 10.67 | % |  |  | 10.88 | % |  |  | 10.05 | % |  |  | 9.43 | %

6

Banc of California, Inc.
Average Balance, Average Yield Earned, and Average Cost Paid
(Dollars in thousands)
(Unaudited)

|  | Three Months Ended |
|  | March 31, 2018 |  |  | December 31, 2017 |  |  | September 30, 2017 |
|  | Average |  |  |  |  |  | Yield |  |  | Average |  |  |  |  |  | Yield |  |  | Average |  |  |  |  |  | Yield |
|  | Balance |  |  | Interest |  |  | / Cost |  |  | Balance |  |  | Interest |  |  | / Cost |  |  | Balance |  |  | Interest |  |  | / Cost |
Interest earning assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans held-for-sale (1) |  | $ | 97,095 |  |  | $ | 297 |  |  |  | 1.24 | % |  | $ | 127,139 |  |  | $ | 363 |  |  |  | 1.13 | % |  | $ | 246,675 |  |  | $ | 2,319 |  |  |  | 3.73 | %
SFR mortgage |  |  | 2,122,666 |  |  |  | 21,352 |  |  |  | 4.08 | % |  |  | 1,957,754 |  |  |  | 19,487 |  |  |  | 3.95 | % |  |  | 1,775,443 |  |  |  | 17,435 |  |  |  | 3.90 | %
Seasoned SFR mortgage loan pools |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 84,128 |  |  |  | 1,208 |  |  |  | 5.70 | %
Commercial real estate, multifamily, and construction |  |  | 2,856,290 |  |  |  | 31,439 |  |  |  | 4.46 | % |  |  | 2,613,940 |  |  |  | 29,696 |  |  |  | 4.51 | % |  |  | 2,494,284 |  |  |  | 28,659 |  |  |  | 4.56 | %
Commercial and industrial, SBA, and lease financing |  |  | 1,625,549 |  |  |  | 20,850 |  |  |  | 5.20 | % |  |  | 1,630,886 |  |  |  | 20,989 |  |  |  | 5.11 | % |  |  | 1,553,816 |  |  |  | 20,141 |  |  |  | 5.14 | %
Other consumer |  |  | 103,676 |  |  |  | 1,160 |  |  |  | 4.54 | % |  |  | 107,664 |  |  |  | 1,233 |  |  |  | 4.54 | % |  |  | 114,569 |  |  |  | 1,363 |  |  |  | 4.72 | %
Gross loans and leases |  |  | 6,805,276 |  |  |  | 75,098 |  |  |  | 4.48 | % |  |  | 6,437,383 |  |  |  | 71,768 |  |  |  | 4.42 | % |  |  | 6,268,915 |  |  |  | 71,125 |  |  |  | 4.50 | %
Securities |  |  | 2,525,220 |  |  |  | 21,631 |  |  |  | 3.47 | % |  |  | 2,653,838 |  |  |  | 23,170 |  |  |  | 3.46 | % |  |  | 2,791,585 |  |  |  | 24,337 |  |  |  | 3.46 | %
Other interest-earning assets |  |  | 407,064 |  |  |  | 2,164 |  |  |  | 2.16 | % |  |  | 548,171 |  |  |  | 2,292 |  |  |  | 1.66 | % |  |  | 519,593 |  |  |  | 2,206 |  |  |  | 1.68 | %
Total interest-earning assets |  |  | 9,737,560 |  |  |  | 98,893 |  |  |  | 4.12 | % |  |  | 9,639,392 |  |  |  | 97,230 |  |  |  | 4.00 | % |  |  | 9,580,093 |  |  |  | 97,668 |  |  |  | 4.04 | %
Allowance for loan and lease losses |  |  | (49,257 | ) |  |  |  |  |  |  |  |  |  |  | (45,681 | ) |  |  |  |  |  |  |  |  |  |  | (42,696 | ) |  |  |  |  |  |  |  |
BOLI and non-interest earning assets |  |  | 574,930 |  |  |  |  |  |  |  |  |  |  |  | 572,692 |  |  |  |  |  |  |  |  |  |  |  | 563,784 |  |  |  |  |  |  |  |  |
Total assets |  | $ | 10,263,233 |  |  |  |  |  |  |  |  |  |  | $ | 10,166,403 |  |  |  |  |  |  |  |  |  |  | $ | 10,101,181 |  |  |  |  |  |  |  |  |
Interest-bearing liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings |  | $ | 1,055,338 |  |  |  | 3,300 |  |  |  | 1.27 | % |  | $ | 1,019,659 |  |  |  | 2,947 |  |  |  | 1.15 | % |  | $ | 968,158 |  |  |  | 2,263 |  |  |  | 0.93 | %
Interest-bearing checking |  |  | 1,976,160 |  |  |  | 4,108 |  |  |  | 0.84 | % |  |  | 2,082,677 |  |  |  | 4,267 |  |  |  | 0.81 | % |  |  | 2,037,729 |  |  |  | 3,871 |  |  |  | 0.75 | %
Money market |  |  | 1,076,117 |  |  |  | 2,834 |  |  |  | 1.07 | % |  |  | 1,294,537 |  |  |  | 3,262 |  |  |  | 1.00 | % |  |  | 1,935,262 |  |  |  | 5,095 |  |  |  | 1.04 | %
Certificates of deposit |  |  | 1,906,556 |  |  |  | 6,553 |  |  |  | 1.39 | % |  |  | 1,822,010 |  |  |  | 5,568 |  |  |  | 1.21 | % |  |  | 1,560,078 |  |  |  | 4,239 |  |  |  | 1.08 | %
Total interest-bearing deposits |  |  | 6,014,171 |  |  |  | 16,795 |  |  |  | 1.13 | % |  |  | 6,218,883 |  |  |  | 16,044 |  |  |  | 1.02 | % |  |  | 6,501,227 |  |  |  | 15,468 |  |  |  | 0.94 | %
FHLB advances |  |  | 1,711,089 |  |  |  | 7,392 |  |  |  | 1.75 | % |  |  | 1,448,326 |  |  |  | 5,402 |  |  |  | 1.48 | % |  |  | 962,391 |  |  |  | 3,352 |  |  |  | 1.38 | %
Securities sold under repurchase agreements |  |  | 119,543 |  |  |  | 750 |  |  |  | 2.54 | % |  |  | 33,513 |  |  |  | 194 |  |  |  | 2.30 | % |  |  | 88,810 |  |  |  | 500 |  |  |  | 2.23 | %
Long-term debt and other interest-bearing liabilities |  |  | 174,424 |  |  |  | 2,332 |  |  |  | 5.42 | % |  |  | 174,066 |  |  |  | 2,344 |  |  |  | 5.34 | % |  |  | 173,772 |  |  |  | 2,395 |  |  |  | 5.47 | %
Total interest-bearing liabilities |  |  | 8,019,227 |  |  |  | 27,269 |  |  |  | 1.38 | % |  |  | 7,874,788 |  |  |  | 23,984 |  |  |  | 1.21 | % |  |  | 7,726,200 |  |  |  | 21,715 |  |  |  | 1.12 | %
Noninterest-bearing deposits |  |  | 1,056,700 |  |  |  |  |  |  |  |  |  |  |  | 1,110,815 |  |  |  |  |  |  |  |  |  |  |  | 1,178,062 |  |  |  |  |  |  |  |  |
Non-interest-bearing liabilities |  |  | 167,345 |  |  |  |  |  |  |  |  |  |  |  | 166,432 |  |  |  |  |  |  |  |  |  |  |  | 191,457 |  |  |  |  |  |  |  |  |
Total liabilities |  |  | 9,243,272 |  |  |  |  |  |  |  |  |  |  |  | 9,152,035 |  |  |  |  |  |  |  |  |  |  |  | 9,095,719 |  |  |  |  |  |  |  |  |
Total stockholders’ equity |  |  | 1,019,961 |  |  |  |  |  |  |  |  |  |  |  | 1,014,368 |  |  |  |  |  |  |  |  |  |  |  | 1,005,462 |  |  |  |  |  |  |  |  |
Total liabilities and stockholders’ equity |  | $ | 10,263,233 |  |  |  |  |  |  |  |  |  |  | $ | 10,166,403 |  |  |  |  |  |  |  |  |  |  | $ | 10,101,181 |  |  |  |  |  |  |  |  |
Net interest income/spread |  |  |  |  |  | $ | 71,624 |  |  |  | 2.74 | % |  |  |  |  |  | $ | 73,246 |  |  |  | 2.79 | % |  |  |  |  |  | $ | 75,953 |  |  |  | 2.92 | %
Net interest margin |  |  |  |  |  |  |  |  |  |  | 2.98 | % |  |  |  |  |  |  |  |  |  |  | 3.01 | % |  |  |  |  |  |  |  |  |  |  | 3.15 | %
Ratio of interest-earning assets to interest-bearing liabilities |  |  | 121.43 | % |  |  |  |  |  |  |  |  |  |  | 122.41 | % |  |  |  |  |  |  |  |  |  |  | 123.99 | % |  |  |  |  |  |  |  |
Total deposits |  | $ | 7,070,871 |  |  | $ | 16,795 |  |  |  | 0.96 | % |  | $ | 7,329,698 |  |  | $ | 16,044 |  |  |  | 0.87 | % |  | $ | 7,679,289 |  |  | $ | 15,468 |  |  |  | 0.80 | %
Total funding (2) |  | $ | 9,075,927 |  |  | $ | 27,269 |  |  |  | 1.22 | % |  | $ | 8,985,603 |  |  | $ | 23,984 |  |  |  | 1.06 | % |  | $ | 8,904,262 |  |  | $ | 21,715 |  |  |  | 0.97 | %

(1) | Includes loans held-for-sale of discontinued operations

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

7

Banc of California, Inc.
Average Balance, Average Yield Earned, and Average Cost Paid, Continued
(Dollars in thousands)
(Unaudited)

|  | Three Months Ended |
|  | June 30, 2017 |  |  | March 31, 2017 |
|  | Average |  |  |  |  |  | Yield |  |  | Average |  |  |  |  |  | Yield |
|  | Balance |  |  | Interest |  |  | / Cost |  |  | Balance |  |  | Interest |  |  | / Cost |
Interest earning assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans held-for-sale (1) |  | $ | 575,669 |  |  | $ | 4,876 |  |  |  | 3.40 | % |  | $ | 699,671 |  |  | $ | 6,111 |  |  |  | 3.54 | %
SFR mortgage |  |  | 1,832,524 |  |  |  | 18,006 |  |  |  | 3.94 | % |  |  | 1,963,861 |  |  |  | 19,105 |  |  |  | 3.95 | %
Seasoned SFR mortgage loan pools |  |  | 151,759 |  |  |  | 2,121 |  |  |  | 5.61 | % |  |  | 154,736 |  |  |  | 2,145 |  |  |  | 5.62 | %
Commercial real estate, multifamily, and construction |  |  | 2,394,487 |  |  |  | 27,038 |  |  |  | 4.53 | % |  |  | 2,336,323 |  |  |  | 26,393 |  |  |  | 4.58 | %
Commercial and industrial, SBA, and lease financing |  |  | 1,565,583 |  |  |  | 18,991 |  |  |  | 4.87 | % |  |  | 1,508,756 |  |  |  | 17,751 |  |  |  | 4.77 | %
Other consumer |  |  | 119,644 |  |  |  | 1,425 |  |  |  | 4.78 | % |  |  | 121,666 |  |  |  | 1,268 |  |  |  | 4.23 | %
Gross loans and leases |  |  | 6,639,666 |  |  |  | 72,457 |  |  |  | 4.38 | % |  |  | 6,785,013 |  |  |  | 72,773 |  |  |  | 4.35 | %
Securities |  |  | 3,004,551 |  |  |  | 24,996 |  |  |  | 3.34 | % |  |  | 3,376,698 |  |  |  | 27,239 |  |  |  | 3.27 | %
Other interest-earning assets |  |  | 517,349 |  |  |  | 1,783 |  |  |  | 1.38 | % |  |  | 500,123 |  |  |  | 2,096 |  |  |  | 1.70 | %
Total interest-earning assets |  |  | 10,161,566 |  |  |  | 99,236 |  |  |  | 3.92 | % |  |  | 10,661,834 |  |  |  | 102,108 |  |  |  | 3.88 | %
Allowance for loan and lease losses |  |  | (42,896 | ) |  |  |  |  |  |  |  |  |  |  | (41,285 | ) |  |  |  |  |  |  |  |
BOLI and non-interest earning assets |  |  | 578,333 |  |  |  |  |  |  |  |  |  |  |  | 568,257 |  |  |  |  |  |  |  |  |
Total assets |  | $ | 10,697,003 |  |  |  |  |  |  |  |  |  |  | $ | 11,188,806 |  |  |  |  |  |  |  |  |
Interest-bearing liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings |  | $ | 1,002,797 |  |  |  | 2,262 |  |  |  | 0.90 | % |  | $ | 1,042,031 |  |  |  | 2,292 |  |  |  | 0.89 | %
Interest-bearing checking |  |  | 2,013,751 |  |  |  | 3,609 |  |  |  | 0.72 | % |  |  | 2,008,828 |  |  |  | 3,414 |  |  |  | 0.69 | %
Money market |  |  | 2,359,173 |  |  |  | 5,482 |  |  |  | 0.93 | % |  |  | 2,735,810 |  |  |  | 4,691 |  |  |  | 0.70 | %
Certificates of deposit |  |  | 1,606,270 |  |  |  | 3,589 |  |  |  | 0.90 | % |  |  | 1,937,392 |  |  |  | 3,563 |  |  |  | 0.75 | %
Total interest-bearing deposits |  |  | 6,981,991 |  |  |  | 14,942 |  |  |  | 0.86 | % |  |  | 7,724,061 |  |  |  | 13,960 |  |  |  | 0.73 | %
FHLB advances |  |  | 990,780 |  |  |  | 2,774 |  |  |  | 1.12 | % |  |  | 812,444 |  |  |  | 1,423 |  |  |  | 0.71 | %
Securities sold under repurchase agreements |  |  | 34,298 |  |  |  | 180 |  |  |  | 2.11 | % |  |  | 2,123 |  |  |  | 6 |  |  |  | 1.15 | %
Long-term debt and other interest-bearing liabilities |  |  | 240,201 |  |  |  | 3,044 |  |  |  | 5.08 | % |  |  | 244,040 |  |  |  | 2,972 |  |  |  | 4.94 | %
Total interest-bearing liabilities |  |  | 8,247,270 |  |  |  | 20,940 |  |  |  | 1.02 | % |  |  | 8,782,668 |  |  |  | 18,361 |  |  |  | 0.85 | %
Noninterest-bearing deposits |  |  | 1,261,338 |  |  |  |  |  |  |  |  |  |  |  | 1,181,279 |  |  |  |  |  |  |  |  |
Non-interest-bearing liabilities |  |  | 174,128 |  |  |  |  |  |  |  |  |  |  |  | 223,075 |  |  |  |  |  |  |  |  |
Total liabilities |  |  | 9,682,736 |  |  |  |  |  |  |  |  |  |  |  | 10,187,022 |  |  |  |  |  |  |  |  |
Total stockholders’ equity |  |  | 1,014,267 |  |  |  |  |  |  |  |  |  |  |  | 1,001,784 |  |  |  |  |  |  |  |  |
Total liabilities and stockholders’ equity |  | $ | 10,697,003 |  |  |  |  |  |  |  |  |  |  | $ | 11,188,806 |  |  |  |  |  |  |  |  |
Net interest income/spread |  |  |  |  |  | $ | 78,296 |  |  |  | 2.90 | % |  |  |  |  |  | $ | 83,747 |  |  |  | 3.03 | %
Net interest margin |  |  |  |  |  |  |  |  |  |  | 3.09 | % |  |  |  |  |  |  |  |  |  |  | 3.19 | %
Ratio of interest-earning assets to interest-bearing liabilities |  |  | 123.21 | % |  |  |  |  |  |  |  |  |  |  | 121.40 | % |  |  |  |  |  |  |  |
Total deposits |  | $ | 8,243,329 |  |  | $ | 14,942 |  |  |  | 0.73 | % |  | $ | 8,905,340 |  |  | $ | 13,960 |  |  |  | 0.64 | %
Total funding (2) |  | $ | 9,508,608 |  |  | $ | 20,940 |  |  |  | 0.88 | % |  | $ | 9,963,947 |  |  | $ | 18,361 |  |  |  | 0.75 | %

(1) | Includes loans held-for-sale of discontinued operations

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

8

Banc of California, Inc.
Consolidated Operations
Non-GAAP Measures
(Dollars in thousands, except per share data)
(Unaudited)

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

Return on average tangible common equity and efficiency ratio, as adjusted, tangible common equity to tangible assets, and tangible common equity per common share and tangible common equity per common share and per common share issuable under purchase contracts constitute supplemental financial information determined by methods other than in accordance with GAAP. These non-GAAP measures are used by management in its analysis of the Company’s performance.

Tangible common equity is calculated by subtracting preferred stock, goodwill, and other intangible assets from stockholders’ equity. Tangible assets is calculated by subtracting goodwill and other intangible assets from total assets. Banking regulators also exclude goodwill and other intangible assets from stockholders’ equity when assessing the capital adequacy of a financial institution.

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

This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

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

|  | March 31, |  |  | December 31, |  |  | September 30, |  |  | June 30, |  |  | March 31, |
|  | 2018 |  |  | 2017 |  |  | 2017 |  |  | 2017 |  |  | 2017 |
Tangible common equity to tangible assets ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total assets |  | $ | 10,329,319 |  |  | $ | 10,327,852 |  |  | $ | 10,280,028 |  |  | $ | 10,365,768 |  |  | $ | 11,052,085 |
Less goodwill |  |  | (37,144 | ) |  |  | (37,144 | ) |  |  | (37,144 | ) |  |  | (37,144 | ) |  |  | (37,144 | )
Less other intangible assets |  |  | (8,510 | ) |  |  | (9,353 | ) |  |  | (10,219 | ) |  |  | (11,135 | ) |  |  | (12,191 | )
Tangible assets |  | $ | 10,283,665 |  |  | $ | 10,281,355 |  |  | $ | 10,232,665 |  |  | $ | 10,317,489 |  |  | $ | 11,002,750 |
Total stockholders’ equity |  | $ | 993,756 |  |  | $ | 1,012,308 |  |  | $ | 1,013,908 |  |  | $ | 1,006,292 |  |  | $ | 985,748 |
Less goodwill |  |  | (37,144 | ) |  |  | (37,144 | ) |  |  | (37,144 | ) |  |  | (37,144 | ) |  |  | (37,144 | )
Less other intangible assets |  |  | (8,510 | ) |  |  | (9,353 | ) |  |  | (10,219 | ) |  |  | (11,135 | ) |  |  | (12,191 | )
Tangible equity |  |  | 948,102 |  |  |  | 965,811 |  |  |  | 966,545 |  |  |  | 958,013 |  |  |  | 936,413 |
Less preferred stock |  |  | (269,071 | ) |  |  | (269,071 | ) |  |  | (269,071 | ) |  |  | (269,071 | ) |  |  | (269,071 | )
Tangible common equity |  | $ | 679,031 |  |  | $ | 696,740 |  |  | $ | 697,474 |  |  | $ | 688,942 |  |  | $ | 667,342 |
Total stockholders’ equity to total assets |  |  | 9.62 | % |  |  | 9.80 | % |  |  | 9.86 | % |  |  | 9.71 | % |  |  | 8.92 | %
Tangible equity to tangible assets |  |  | 9.22 | % |  |  | 9.39 | % |  |  | 9.45 | % |  |  | 9.29 | % |  |  | 8.51 | %
Tangible common equity to tangible assets |  |  | 6.60 | % |  |  | 6.78 | % |  |  | 6.82 | % |  |  | 6.68 | % |  |  | 6.07 | %
Common stock outstanding |  |  | 50,079,736 |  |  |  | 50,083,345 |  |  |  | 50,096,056 |  |  |  | 49,991,395 |  |  |  | 49,601,363 |
Class B non-voting non-convertible common stock outstanding |  |  | 508,107 |  |  |  | 508,107 |  |  |  | 430,694 |  |  |  | 355,173 |  |  |  | 277,797 |
Total common stock outstanding |  |  | 50,587,843 |  |  |  | 50,591,452 |  |  |  | 50,526,750 |  |  |  | 50,346,568 |  |  |  | 49,879,160 |
Minimum number of shares issuable under purchase contracts (1) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 166,265 |
Total common stock outstanding and shares issuable under purchase contracts |  |  | 50,587,843 |  |  |  | 50,591,452 |  |  |  | 50,526,750 |  |  |  | 50,346,568 |  |  |  | 50,045,425 |
(1) Purchase contracts relating to the tangible equity units |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tangible common equity per common stock |  | $ | 13.42 |  |  | $ | 13.77 |  |  | $ | 13.80 |  |  | $ | 13.68 |  |  | $ | 13.38 |
Book value per common stock |  | $ | 14.33 |  |  | $ | 14.69 |  |  | $ | 14.74 |  |  | $ | 14.64 |  |  | $ | 14.37 |
Tangible common equity per common stock and shares issuable under purchase contracts |  | $ | 13.42 |  |  | $ | 13.77 |  |  | $ | 13.80 |  |  | $ | 13.68 |  |  | $ | 13.33 |
Book value per common stock and shares issuable under purchase contracts |  | $ | 14.33 |  |  | $ | 14.69 |  |  | $ | 14.74 |  |  | $ | 14.64 |  |  | $ | 14.32 |

9

Banc of California, Inc.
Consolidated Operations
Non-GAAP Measures, Continued
(Dollars in thousands, except per share data)
(Unaudited)

|  | Three Months Ended |
|  | March 31, |  |  | December 31, |  |  | September 30, |  |  | June 30, |  |  | March 31, |
|  | 2018 |  |  | 2017 |  |  | 2017 |  |  | 2017 |  |  | 2017 |
Return on tangible common equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average total stockholders’ equity |  | $ | 1,019,961 |  |  | $ | 1,014,368 |  |  | $ | 1,005,462 |  |  | $ | 1,014,267 |  |  | $ | 1,001,784 |
Less average preferred stock |  |  | (269,071 | ) |  |  | (269,071 | ) |  |  | (269,071 | ) |  |  | (269,071 | ) |  |  | (269,071 | )
Less average goodwill |  |  | (37,144 | ) |  |  | (37,144 | ) |  |  | (37,144 | ) |  |  | (37,144 | ) |  |  | (39,221 | )
Less average other intangible assets |  |  | (8,972 | ) |  |  | (9,788 | ) |  |  | (10,760 | ) |  |  | (11,808 | ) |  |  | (13,190 | )
Average tangible common equity |  | $ | 704,774 |  |  | $ | 698,365 |  |  | $ | 688,487 |  |  | $ | 696,244 |  |  | $ | 680,302 |
Net income |  | $ | 8,558 |  |  | $ | 11,302 |  |  | $ | 16,949 |  |  | $ | 12,257 |  |  | $ | 17,201 |
Less preferred stock dividends |  |  | (5,113 | ) |  |  | (5,113 | ) |  |  | (5,112 | ) |  |  | (5,113 | ) |  |  | (5,113 | )
Add amortization of intangible assets |  |  | 843 |  |  |  | 866 |  |  |  | 916 |  |  |  | 1,056 |  |  |  | 1,090 |
Add impairment on intangible assets |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 336 |
Less tax effect on amortization and impairment of intangible assets (1) |  |  | (177 | ) |  |  | (303 | ) |  |  | (321 | ) |  |  | (370 | ) |  |  | (499 | )
Net income available to common stockholders |  | $ | 4,111 |  |  | $ | 6,752 |  |  | $ | 12,432 |  |  | $ | 7,830 |  |  | $ | 13,015 |
Return on average equity |  |  | 3.40 | % |  |  | 4.42 | % |  |  | 6.69 | % |  |  | 4.85 | % |  |  | 6.96 | %
Return on average tangible common equity |  |  | 2.37 | % |  |  | 3.84 | % |  |  | 7.16 | % |  |  | 4.51 | % |  |  | 7.76 | %
Effective tax rate utilized for calculating tax effect on amortization and impairment of intangible assets |  |  | 21.00 | % |  |  | 35.00 | % |  |  | 35.00 | % |  |  | 35.00 | % |  |  | 35.00 | %
|  | Three Months Ended |
|  | March 31, |  |  | December 31, |  |  | September 30, |  |  | June 30, |  |  | March 31, |
|  | 2018 |  |  | 2017 |  |  | 2017 |  |  | 2017 |  |  | 2017 |
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest expense |  | $ | 59,812 |  |  | $ | 66,424 |  |  | $ | 79,008 |  |  | $ | 98,216 |  |  | $ | 124,615 |
Gain (loss) on investments in alternative energy partnerships |  |  | 34 |  |  |  | (3,995 | ) |  |  | (8,348 | ) |  |  | (9,761 | ) |  |  | (8,682 | )
Adjusted noninterest expense |  | $ | 59,846 |  |  | $ | 62,429 |  |  | $ | 70,660 |  |  | $ | 88,455 |  |  | $ | 115,933 |
Net interest income |  | $ | 71,624 |  |  | $ | 73,246 |  |  | $ | 75,953 |  |  | $ | 78,296 |  |  | $ | 83,747 |
Noninterest income |  |  | 10,452 |  |  |  | 6,429 |  |  |  | 18,827 |  |  |  | 19,817 |  |  |  | 59,704 |
Total revenue |  |  | 82,076 |  |  |  | 79,675 |  |  |  | 94,780 |  |  |  | 98,113 |  |  |  | 143,451 |
Tax credit from investments in alternative energy partnerships |  |  | 7,323 |  |  |  | 4,908 |  |  |  | 8,777 |  |  |  | 15,681 |  |  |  | 8,829 |
Deferred tax expense on investments in alternative energy partnerships |  |  | (769 | ) |  |  | (859 | ) |  |  | (1,536 | ) |  |  | (2,744 | ) |  |  | (1,545 | )
Tax effect on tax credit and deferred tax expense |  |  | 2,422 |  |  |  | 3,004 |  |  |  | 3,804 |  |  |  | 8,584 |  |  |  | 5,140 |
Gain (loss) on investments in alternative energy partnerships |  |  | 34 |  |  |  | (3,995 | ) |  |  | (8,348 | ) |  |  | (9,761 | ) |  |  | (8,682 | )
Total pre-tax adjustments for investments in alternative energy partnerships |  |  | 9,010 |  |  |  | 3,058 |  |  |  | 2,697 |  |  |  | 11,760 |  |  |  | 3,742 |
Adjusted total revenue |  | $ | 91,086 |  |  | $ | 82,733 |  |  | $ | 97,477 |  |  | $ | 109,873 |  |  | $ | 147,193 |
Efficiency ratio |  |  | 72.87 | % |  |  | 83.37 | % |  |  | 83.36 | % |  |  | 100.10 | % |  |  | 86.87 | %
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships |  |  | 65.70 | % |  |  | 75.46 | % |  |  | 72.49 | % |  |  | 80.51 | % |  |  | 78.76 | %
Effective tax rate utilized for calculating tax effect on tax credit and deferred tax expense |  |  | 26.98 | % |  |  | 42.59 | % |  |  | 34.44 | % |  |  | 39.89 | % |  |  | 41.37 | %

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