EX. 99.1

Banc of California Reports Fourth Quarter 2019 Financial Results

SANTA ANA, Calif., (January 23, 2020) — Banc of California, Inc. (NYSE: BANC) today reported net income available to common stockholders for the fourth quarter of $10.4 million, resulting in diluted income per common share of $0.20.

Highlights for the fourth quarter (as compared to third quarter 2019) included:

• Net interest margin increased 18 basis points to 3.04%

• Cost of total deposits decreased by 21 basis points to 1.27%

• Noninterest-bearing deposit balances increased to 20.1% of total deposits, up from 19.2%

• Average noninterest-bearing deposits increased by $60 million, or 5.7%

• Return on average assets was 0.71% and return on average equity was 6.20%

“2019 was the beginning of the transformation of Banc of California,” said Jared Wolff, President and Chief Executive Officer of Banc of California.  “We successfully executed on each of our key strategic priorities, reducing cost of deposits, lowering expenses and right-sizing the balance sheet.  As a result of our efforts, we have solidified our foundation as a relationship focused business bank, and are poised to create true franchise value going forward.”

Mr. Wolff continued, “As we enter 2020, we will continue to build on the momentum from 2019, remixing our loans and deposits to improve our franchise, and expanding our presence in the key lending segments we are targeting.  Further, having built up excess capital, we will be looking for opportunities to deploy it that optimize our franchise and improve earnings in the future.  We look forward to showing progress on these initiatives in 2020.”  

Lynn Hopkins, Chief Financial Officer of Banc of California said, “The significant improvement in our cost of funds drove the 18 basis point increase in our net interest margin as interest earning asset yields remained steady at 4.50%. Our overall cost of funds decreased to 1.55% as we have been able to reduce our reliance on wholesale funding sources. The fourth quarter, average noninterest-bearing deposit balances increased for the third consecutive quarter and represented over 19% of our total average deposits. Looking forward, we expect to continue seeing benefits from the loan and securities remixing activities and we are well-positioned to show ongoing improvement on both sides of the balance sheet.”

1

EX. 99.1

Business Results - Income Statement Highlights

	Three Months Ended																				Year Ended
	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				December 31, 2019				December 31, 2018
	($ in thousands)
Total interest and dividend income	$	83,702			$	92,657			$	104,040			$	110,712			$	111,130			$	391,111			$	422,796
Total interest expense	27,042				33,742				39,260				42,904				40,448				142,948				136,720
Net interest income	56,660				58,915				64,780				67,808				70,682				248,163				286,076
(Reversal of) provision for loan and lease losses	(2,678		)		38,540				(1,987		)		2,512				6,653				36,387				30,215
Net interest income after provision for loan and lease losses	59,338				20,375				66,767				65,296				64,029				211,776				255,861
Total noninterest income (loss)	4,930				3,181				(2,290		)		6,295				2,448				12,116				23,915
Total noninterest expense	47,185				43,307				43,587				61,835				49,569				195,914				232,785
Income tax expense (benefit)	2,811				(5,619		)		4,308				2,719				6,117				4,219				4,844
Income (loss) from continuing operations	14,272				(14,132		)		16,582				7,037				10,791				23,759				42,147
Income from discontinued operations, net of tax	—				—				—				—				247				—				3,325
Net income (loss)	$	14,272			$	(14,132	)		$	16,582			$	7,037			$	11,038			$	23,759			$	45,472
Net income (loss) available to common stockholders(1)	$	10,415			$	(22,722	)		$	11,909			$	2,527			$	6,527			$	2,624			$	22,850

(1) Balance represents the net income (loss) available to common stockholders after subtracting preferred stock dividends, income allocated to participating securities, participating securities dividends and impact of preferred stock redemption from net income (loss). Refer to the Statement of Operations at the end for additional detail on these amounts.

Net interest income

Q4 2019 vs Q3 2019.

Net interest income for the fourth quarter decreased $2.3 million to $56.7 million due mostly to lower average loans and securities partially offset by an expanded net interest margin. Average interest-earning assets declined from the prior quarter by $781 million to $7.4 billion. During the prior quarter, we sold lower yielding, longer duration earning assets and used the sale proceeds to repay high cost funding liabilities; the full impact of this strategic objective was recognized during the fourth quarter.

The net interest margin improved 18 basis points to 3.04%. Our average yield on interest-earning assets remained flat quarter over quarter at 4.50%, primarily attributable to higher yielding loans representing a higher percentage of interest earning assets and a higher average yield on securities offset by a lower average loan yield. Our average yield on loans declined 4 basis points to 4.71% for the fourth quarter and the linked quarter decrease is due mostly to loans being originated and repriced into the lower rate environment, partially offset by higher average yields on commercial real estate, multifamily and construction loans. Our average yield on securities increased 12 basis points primarily as a result of our concentrated efforts to remix the securities portfolio and the high-yielding, variable rate CLOs representing a higher percentage of the portfolio, offset by these variable rate investments resetting into the lower interest rate environment.

Our average cost of interest-bearing liabilities decreased 18 basis points to 1.85% for the fourth quarter from 2.03% for the third quarter, driven by the lower average cost of interest-bearing deposits, which decreased by 21 basis points to 1.57% from the prior quarter. Additionally, average noninterest-bearing deposits increased by $60 million, or 5.7%, and represented 19.4% of total average deposits in the fourth quarter. Our total cost of deposits decreased 21 basis points to 1.27% for the fourth quarter. The decrease in our funding cost is due to a lower reliance on high cost transaction accounts and wholesale funds as we have managed down the balance sheet and continue to execute on our strategy to focus on relationship clients.

FY 2019 vs FY 2018.

Net interest income for the year ended December 31, 2019 decreased $37.9 million to $248.2 million as compared to $286.1 million for 2018 primarily as a result of targeted sales of securities and loans offset by the overall focus on remixing the loan portfolio towards relationship based lending during the year. For the year ended December 31, 2019, average interest-earning assets declined $1.12 billion to $8.60 billion, and the net interest margin decreased to 2.89% from 2.95% for the comparable 2018 period.

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EX. 99.1

Our average yield on interest-earning assets increased 19 basis points to 4.55% for the year ended December 31, 2019 as compared to 4.36% for the full year of 2018, due to higher average yields on the loan and securities portfolios and an increased mix of loans versus securities. Our average yield on loans was 4.76% for the year ended December 31, 2019, compared to 4.64% for the full year of 2018, primarily attributable to higher average commercial and industrial balances in the portfolio mix and higher average yields on commercial real estate, multifamily and construction loans. Our average yield on securities increased 14 basis points primarily as a result of interest rate resets on our CLOs, partially offset by a decrease in our average balance attributable to the sale and calls of higher yielding CLOs between periods.

Provision for loan losses

Q4 2019 vs Q3 2019.

During the fourth quarter, we recognized a provision release of $2.7 million driven primarily by $431 million in lower loan balances. The provision release was partially offset by downgrades of several loans. In particular, a $24.9 million commercial and industrial (“C&I”) loan was downgraded during the quarter and classified loan balances increased $14.9 million.

FY 2019 vs FY 2018.

During the year ended December 31, 2019, we recognized a loan loss provision of $36.4 million, primarily attributable to a previously reported $35 million charge-off of a line of credit originated in November 2017 to a borrower purportedly the subject of a fraudulent scheme. We are actively evaluating all available sources of recovery, although no assurance can be given that we will be successful in that regard. For the comparable prior year period, $30.2 million of loan loss provisions were recorded, inclusive of a $13.9 million charge-off related to borrower fraud.

Noninterest income

Q4 2019 vs Q3 2019.

Noninterest income for the fourth quarter was $4.9 million, which represented an increase of $1.7 million, or 55% from the prior quarter. The increase was primarily due to no net loss on the sale of available-for-sale securities during the fourth quarter of 2019 as compared to a $5.1 million net loss during the third quarter of 2019, higher loan servicing income, and higher all other income. In addition, the Company had lower impairment losses on investment securities during the fourth quarter. These increases were partially offset by a lower gain on sale of loans of $5.2 million as the fourth quarter recognized a net loss of $833 thousand compared to a net gain of $4.3 million in the prior quarter.

FY 2019 vs FY 2018.

Noninterest income for the year ended December 31, 2019 was $12.1 million, which represented a decrease of $11.8 million, or 49.3% from the prior year. The decrease was primarily attributable to (1) a higher net loss on sale of investment securities of $10.4 million, (2) lower other income of $6.6 million due to the elimination of non-core assets in prior periods and the previously reported $9.6 million loss from interest rate swap agreements entered into in order to offset variability in the fair value of the Freddie Mac securitization completed in 2019, and (3) lower loan servicing income of $3.0 million as a result of the sale of mortgage servicing rights in 2018. These decreases are partially offset by a higher net gain on sale of loans of $5.9 million and a lower impairment loss on investment securities of $2.5 million.

Noninterest expense

Q4 2019 vs Q3 2019.

Noninterest expense for the fourth quarter was $47.2 million, representing an increase of $3.9 million over the prior quarter. Noninterest expense included: (1) $1.9 million lower salaries and benefits expense primarily related to lower headcount, (2) higher professional fees of $1.1 million, (3) $615 thousand higher regulatory assessments related to the one-time small bank assessment credit recorded in the third quarter, (4) $1.6 million in higher restructuring expense related to severance during the fourth quarter of 2019, and (5) a $2.0 million increase in loss on investments in alternative energy partnerships.

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EX. 99.1

FY 2019 vs FY 2018.

Noninterest expense for the year ended December 31, 2019 was $195.9 million, which represented a decrease of $36.9 million, or 15.8% from the prior year. The lower noninterest expense primarily consisted of: (1) lower professional fees of $21.4 million, primarily attributable to $9.6 million of insurance recoveries net of expenses related to securities litigation, indemnification, investigation and other legal expenses, (2) lower salaries and benefits expense of $4.1 million resulting from lower headcount and lower consulting fees, (3) lower advertising costs of $4.2 million, and (4) a $3.4 million decrease in loss on investments in alternative energy partnerships.

Income taxes

Q4 2019 vs Q3 2019.

Income tax expense totaled $2.8 million for the quarter resulting in an effective tax rate of 16.5%. This compares to a $5.6 million tax benefit for the third quarter and an effective tax benefit rate of 28.5%.

FY 2019 vs FY 2018.

Income tax expense totaled $4.2 million for the year ended December 31, 2019, representing an effective tax rate of 15.1%, compared to $6.1 million and 11.9% for 2018. The higher effective tax rate in 2019 is due in part to a reduction in available tax credits generated by the Company compared to 2018. Looking forward, we expect our tax rate to normalize in the range of 22 — 24% as we expect a continued reduction in the generation of tax credits related to investments in alternative energy partnerships.

Balance Sheet

At December 31, 2019, total assets were $7.83 billion, which represented a linked quarter decrease of $796.9 million, consistent with our strategic shift towards reducing our balance sheet and focusing on relationship lending. The following table shows selected balance sheet line items as of the dates indicated.

	As of and for the Three Months Ended																				Amount Change
	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				Q4-19 vs. Q3-19				Q4-19 vs. Q4-18
	($ in thousands)
Total assets	$	7,828,410			$	8,625,337			$	9,359,931			$	9,886,525			$	10,630,067			$	(796,927	)		$	(2,801,657	)
Securities available-for-sale	$	912,580			$	775,662			$	1,167,687			$	1,471,303			$	1,992,500			$	136,918			$	(1,079,920	)
Loans held-for-investment	$	5,951,885			$	6,383,259			$	6,719,570			$	7,557,200			$	7,700,873			$	(431,374	)		$	(1,748,988	)
Loans held-for-sale	$	22,642			$	23,936			$	597,720			$	25,191			$	8,116			$	(1,294	)		$	14,526
Demand deposits	$	2,622,398			$	2,602,011			$	2,510,233			$	2,690,738			$	2,579,000			$	20,387			$	43,398
Other core deposits	2,794,769				3,074,936				3,301,080				3,575,140				3,629,100				(280,167		)		(834,331		)
Brokered deposits	10,000				93,111				480,977				1,459,054				1,708,544				(83,111		)		(1,698,544		)
Total Deposits	$	5,427,167			$	5,770,058			$	6,292,290			$	7,724,932			$	7,916,644			$	(342,891	)		$	(2,489,477	)
As percentage of total deposits
Demand deposits	48.32		%		45.10		%		39.89		%		34.83		%		32.58		%		3.22		%		15.74		%
Other core deposits	51.50		%		53.29		%		52.46		%		46.28		%		45.84		%		(1.79		)%		5.66		%
Brokered deposits	0.18		%		1.61		%		7.64		%		18.89		%		21.58		%		(1.43		)%		(21.40		)%
Average loan yield	4.71		%		4.75		%		4.80		%		4.76		%		4.74		%		(0.04		)%		(0.03		)%
Average cost of interest-bearing deposits	1.57		%		1.78		%		1.89		%		1.92		%		1.77		%		(0.21		)%		(0.20		)%

Investments

Securities available-for-sale was $912.6 million at December 31, 2019, an increase of 17.7% from the previous quarter, primarily due to the purchase of $195.3 million of investment securities, comprised of $128.8 million of agency securities, $53.0 million of municipal bonds and $13.5 million of corporate debt securities during the quarter, partially offset by the sale of $39.4 million of our legacy agency MBS. The funds from the sales of our MBS during the quarter and other available cash balances were reinvested into a mix of security

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EX. 99.1

classes, resulting in an overall shorter duration for the securities portfolio. As of December 31, 2019, our securities portfolio included $718.4 million of CLOs, $127.8 million of agency securities, $52.7 million of municipal securities, and $13.6 million of corporate debt securities.

Loans

The following table sets forth the composition, by loan category, of our loan portfolio as of the dates indicated:

	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
	($ in thousands)
Composition of held-for-investment loans
Commercial real estate	$	818,817			$	891,029			$	856,497			$	865,521			$	867,013
Multifamily	1,494,528				1,563,757				1,598,978				2,332,527				2,241,246
Construction	231,350				228,561				209,029				211,549				203,976
Commercial and industrial	1,691,270				1,789,478				1,951,707				1,907,102				1,944,142
SBA	70,981				75,359				80,929				74,998				68,741
Total commercial loans	4,306,946				4,548,184				4,697,140				5,391,697				5,325,118
Single family residential mortgage	1,590,774				1,775,953				1,961,065				2,102,694				2,305,490
Other consumer	54,165				59,122				61,365				62,809				70,265
Total consumer loans	1,644,939				1,835,075				2,022,430				2,165,503				2,375,755
Total gross loans	$	5,951,885			$	6,383,259			$	6,719,570			$	7,557,200			$	7,700,873
Composition percentage of held-for-investment loans
Commercial real estate	13.8		%		14.0		%		12.7		%		11.5		%		11.3		%
Multifamily	25.1		%		24.5		%		23.8		%		30.9		%		29.2		%
Construction	3.9		%		3.6		%		3.1		%		2.8		%		2.6		%
Commercial and industrial	28.4		%		28.0		%		29.1		%		25.2		%		25.2		%
SBA	1.2		%		1.2		%		1.2		%		1.0		%		0.9		%
Total commercial loans	72.4		%		71.3		%		69.9		%		71.4		%		69.2		%
Single family residential mortgage	26.7		%		27.8		%		29.2		%		27.8		%		29.9		%
Other consumer	0.9		%		0.9		%		0.9		%		0.8		%		0.9		%
Total consumer loans	27.6		%		28.7		%		30.1		%		28.6		%		30.8		%
Total gross loans	100.0		%		100.0		%		100.0		%		100.0		%		100.0		%

Held-for-investment loans decreased $431 million to $6.0 billion from the prior quarter, due mostly to lower single family residential mortgage loans of $185 million, lower C&I loans of $98 million, lower commercial real estate of $72 million, and lower multifamily of $69 million. The decline in single family residential and multifamily is due to mostly to accelerated payoffs as the loans refinance in the lower rate environment. The decline in C&I loans is due primarily to the payoff of a few large loans and lower average outstanding balances on credit lines.

Single family residential mortgage and multifamily loans now comprise 51.8% of the total held-for-investment loan portfolio as compared to 59.1% one year ago. Commercial real estate loans comprised 13.8% of the loan portfolio and commercial and industrial loans constituted 28.4%, with average yields of 4.94% and 5.09% for the fourth quarter of 2019.

5

EX. 99.1

Deposits

The following table sets forth the composition of our deposits at the dates indicated.

	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
	($ in thousands)
Composition of deposits
Noninterest-bearing checking	$	1,088,516			$	1,107,442			$	993,745			$	1,120,700			$	1,023,360
Interest-bearing checking	1,533,882				1,503,208				1,577,901				1,573,499				1,556,410
Money market	715,479				695,530				800,898				899,330				873,153
Savings	885,246				1,042,162				1,061,115				1,151,442				1,265,847
Non-brokered certificates of deposit	1,204,044				1,367,284				1,479,137				1,684,895				1,654,605
Brokered certificates of deposit	—				54,432				379,494				1,295,066				1,543,269
Total deposits	$	5,427,167			$	5,770,058			$	6,292,290			$	7,724,932			$	7,916,644
Composition percentage of deposits
Noninterest-bearing checking	20.1		%		19.2		%		15.8		%		14.5		%		12.9		%
Interest-bearing checking	28.2		%		26.1		%		25.1		%		20.4		%		19.7		%
Money market	13.2		%		12.0		%		12.7		%		11.6		%		11.0		%
Savings	16.3		%		18.1		%		16.9		%		14.9		%		16.0		%
Non-brokered certificates of deposit	22.2		%		23.7		%		23.5		%		21.8		%		20.9		%
Brokered certificates of deposit	—		%		0.9		%		6.0		%		16.8		%		19.5		%
Total deposits	100.0		%		100.0		%		100.0		%		100.0		%		100.0		%

Total deposits decreased $342.9 million during the fourth quarter of 2019 to $5.43 billion due to lower savings balances of $156.9 million, non-brokered certificates of deposit balances of $163.2 million, brokered certificates of deposit balances of $54.4 million, and noninterest-bearing checking of $18.9 million, offset by higher interest-bearing checking of $30.7 million and money market of $19.9 million. The decline in non-brokered certificates of deposit is attributed to a lower amount of renewals for maturing certificates as they reset to lower offer rates. The decline in savings is due to rate sensitive customers lowering balances as this product continues to be priced in to the current rate environment as we focus on building relationship-based deposits. In addition, we reduced our reliance on wholesale funding with no new brokered certificates of deposit acquired in the quarter. Noninterest-bearing deposits totaled $1.09 billion and represented 20.1% of total deposits at year end, which compares to $1.11 billion and 19.2% at September 30, 2019 and $1.02 billion and 12.9% at December 31, 2018.

Debt

Advances from the FHLB decreased $455 million on a linked-quarter basis, or 28%, to $1.20 billion as of December 31, 2019, primarily as a result of the maturity of $300 million in fixed rate-advances and a reduction in overnight advances of $205 million. At the end of the fourth quarter of 2019, the maturity dates of FHLB advances consisted of $465 million of overnight, $74 million maturing in three months or less, and $656 million maturing beyond three months. As of the end of the fourth quarter of 2019, the overnight advance interest rate was 1.66%.

Equity

At December 31, 2019, total stockholders’ equity increased by $6.3 million to $907.2 million on a linked-quarter basis, while tangible common equity increased by $6.7 million to $676.1 million. The increase in total stockholders’ equity related to net income of $14.3 million, partially offset by the dividends to common and preferred stockholders of $6.8 million and an increase in accumulated other comprehensive loss of $2.3 million as a result of reductions in the fair value of securities available-for-sale.

Capital ratios remain strong with total risk-based capital at 15.90% and a tier 1 leverage ratio of 10.89%. The following table sets forth our regulatory capital ratios at December 31, 2019 and the previous four quarters.

6

EX. 99.1

	December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018
Capital Ratios(1)
Banc of California, Inc.
Total risk-based capital ratio	15.90	%		14.37	%		15.00	%		14.01	%		13.71	%
Tier 1 risk-based capital ratio	14.83	%		13.32	%		14.03	%		13.03	%		12.77	%
Common equity tier 1 capital ratio	11.56	%		10.34	%		10.50	%		9.72	%		9.53	%
Tier 1 leverage ratio	10.89	%		9.84	%		9.62	%		8.87	%		8.95	%
Banc of California, NA
Total risk-based capital ratio	17.46	%		15.65	%		16.70	%		15.79	%		15.71	%
Tier 1 risk-based capital ratio	16.39	%		14.60	%		15.73	%		14.81	%		14.77	%
Common equity tier 1 capital ratio	16.39	%		14.60	%		15.73	%		14.81	%		14.77	%
Tier 1 leverage ratio	12.02	%		10.75	%		10.80	%		10.07	%		10.36	%

(1) December 31, 2019 capital ratios are preliminary,

Credit Quality

	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
Asset quality information and ratios	($ in thousands)
Delinquent loans held-for-investment
30 to 89 days delinquent	$	32,873			$	39,122			$	34,938			$	44,840			$	26,684
90+ days delinquent	24,734				17,220				17,272				14,623				13,846
Total delinquent loans	$	57,607			$	56,342			$	52,210			$	59,463			$	40,530
Total delinquent loans to total loans	0.97		%		0.88		%		0.78		%		0.79		%		0.53		%
Non-performing assets, excluding loans held-for-sale
Non-performing loans	$	43,354			$	45,169			$	28,499			$	27,739			$	21,585
90+ days delinquent and still accruing loans	—				—				275				731				470
Other real estate owned	—				—				276				316				672
Non-performing assets	$	43,354			$	45,169			$	29,050			$	28,786			$	22,727
ALLL to non-performing loans	132.97		%		139.31		%		206.86		%		224.40		%		281.99		%
Non-performing loans to total loans held-for-investment	0.73		%		0.71		%		0.43		%		0.38		%		0.29		%
Non-performing assets to total assets	0.55		%		0.52		%		0.31		%		0.29		%		0.21		%
Troubled debt restructurings (TDRs)
Performing TDRs	$	6,620			$	6,800			$	20,245			$	5,574			$	5,745
Non-performing TDRs	21,837				14,605				2,428				1,943				2,276
Total TDRs	$	28,457			$	21,405			$	22,673			$	7,517			$	8,021

Total delinquent loans increased $1.3 million in the fourth quarter to $57.6 million at December 31, 2019, due to $22.8 million of additions, offset by $7.8 million returning to current status and $13.7 million of principal payments or payoffs. The $22.8 million of additions includes a $9.0 million single family residential mortgage loan with a 38% loan-to-value ratio and a $5.0 million C&I loan in process of restructuring. Loans 90+ days delinquent includes single family residential mortgage loans, which account for 75% of the balance.

Non-performing loans decreased $1.8 million in the fourth quarter to $43.4 million as of December 31, 2019, due to the sale of $11.9 million of non-performing loans and $4.1 million of loans returning to performing status, offset by $14.3 million of performing loans being placed on nonaccrual status. The year end balance includes two large loans that comprise 54% of our total nonperforming loans, one is a $14.0 million shared national credit and the other is a $9.0 million single family mortgage residential loan,with a loan-to-value ratio of 38%. Aside from those two loans, nonperforming loans total $20 million, of which 48% relates to single family residential mortgage loans. Of the $43.4 million non-performing loans at December 31, 2019, $17.7 million relates to loans in a current payment status.

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EX. 99.1

Allowance for Loan Losses

	Three Months Ended
	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
	($ in thousands)
Allowance for loan losses (ALLL)
Balance at beginning of period	$	62,927			$	59,523			$	63,885			$	62,192			$	57,782
Loans and leases charged off	(2,706		)		(35,546		)		(2,451		)		(1,063		)		(2,522		)
Recoveries	106				410				76				244				279
Net charge-offs	(2,600		)		(35,136		)		(2,375		)		(819		)		(2,243		)
(Reversal of) provision for loan losses	(2,678		)		38,540				(1,987		)		2,512				6,653
Balance at end of period	$	57,649			$	62,927			$	59,523			$	63,885			$	62,192
Annualized net loan charge-offs to average total loans held-for-investment	0.17		%		2.19		%		0.13		%		0.04		%		0.12		%
Reserve for loss on repurchased loans
Balance at beginning of period	$	6,561			$	2,478			$	2,486			$	2,506			$	2,575
Initial provision for loan repurchases	—				4,415				53				96				53
Reversal of provision for loan repurchases	(360		)		(123		)		(61		)		(116		)		(122		)
Utilization of reserve for loan repurchases	—				(209		)		—				—				—
Balance at end of period	$	6,201			$	6,561			$	2,478			$	2,486			$	2,506

During the fourth quarter of 2019, the allowance for loan losses decreased by $5.3 million as a result of a $2.7 million provision release and net charge-offs of $2.6 million. The net charge-offs include $1.7 million related to the sale of $11.9 million of nonperforming loans. The provision release was driven primarily by $431 million in lower loan balances.

The reserve for loss on repurchased loans decreased by $360 thousand in the fourth quarter due to continued runoff of principal balances associated with the multifamily loan securitization and single-family residential mortgage loans previously sold. This runoff of the associated sold balances results in reduced anticipated losses from repurchases.

Subsequent Events

On January 22, 2020 the Company filed a Shelf Registration Statement on Form S-3 with the Securities and Exchange Commission to provide the Company with flexibility and enable it to access the public capital markets to respond to financing and business opportunities that may arise in the future.  The Company’s prior Shelf Registration Statement expired in August 2019.

The Company will host a conference call to discuss its fourth quarter 2019 financial results at 10:00 a.m. Pacific Time (PT) on Thursday, January 23, 2020. Interested parties are welcome to attend the conference call by dialing 888-317-6003, and referencing event code 1520432. A live audio webcast will also be available and the webcast link will be posted on the Company’s Investor Relations website at www.bancofcal.com/investor. The slide presentation for the call will also be available on the Company's Investor Relations website prior to the call.

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) is a bank holding company with approximately $7.8 billion in assets and one wholly-owned banking subsidiary, Banc of California, N.A. (the “Bank”). The Bank has 43 offices including 32 full-service branches located throughout Southern California. Through our dedicated professionals, we provide customized and innovative banking and lending solutions to businesses, entrepreneurs and individuals throughout California. We help to improve the communities where we live and work, by supporting organizations that provide financial literacy and job training, small business support and affordable housing. With a commitment to service and building enduring relationships, we provide a higher standard of banking. We look forward to helping you achieve your goals. For more information, please visit us at www.bancofcal.com.

8

EX. 99.1

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:

Banc of California, Inc.

(855) 361-2262

Jared Wolff, (949) 385-8700

Lynn Hopkins, (949) 265-6599

9

EX. 99.1

Banc of California, Inc.

Consolidated Statements of Financial Condition

(Dollars in thousands)

(Unaudited)

	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
ASSETS
Cash and cash equivalents	$	373,472			$	526,874			$	313,850			$	304,705			$	391,592
Securities available-for-sale	912,580				775,662				1,167,687				1,471,303				1,992,500
Loans held-for-sale	22,642				23,936				597,720				25,191				8,116
Loans held-for-investment	5,951,885				6,383,259				6,719,570				7,557,200				7,700,873
Allowance for loan losses	(57,649		)		(62,927		)		(59,523		)		(63,885		)		(62,192		)
Federal Home Loan Bank and other bank stock	59,420				71,679				76,373				55,794				68,094
Servicing rights, net	2,299				2,407				2,715				3,053				3,428
Other real estate owned, net	—				—				276				316				672
Premises and equipment, net	128,021				128,979				129,227				130,417				129,394
Investments in alternative energy partnerships, net	29,300				27,039				26,633				26,578				28,988
Goodwill	37,144				37,144				37,144				37,144				37,144
Other intangible assets, net	4,151				4,605				5,105				5,726				6,346
Deferred income tax, net	44,906				45,950				42,798				45,111				49,404
Income tax receivable	4,233				4,459				2,547				4,787				2,695
Bank owned life insurance investment	109,819				108,720				108,132				107,552				107,027
Right of use assets	22,540				23,907				24,118				24,519				—
Due from unsettled securities sales	—				334,769				—				—				—
Other assets	183,647				188,875				165,559				151,014				146,496
Assets of discontinued operations	—				—				—				—				19,490
Total assets	$	7,828,410			$	8,625,337			$	9,359,931			$	9,886,525			$	10,630,067
LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits	$	1,088,516			$	1,107,442			$	993,745			$	1,120,700			$	1,023,360
Interest-bearing deposits	4,338,651				4,662,616				5,298,545				6,604,232				6,893,284
Total deposits	5,427,167				5,770,058				6,292,290				7,724,932				7,916,644
Advances from Federal Home Loan Bank	1,195,000				1,650,000				1,825,000				935,000				1,520,000
Notes payable, net	173,421				173,339				173,257				173,203				173,174
Reserve for loss on repurchased loans	6,201				6,561				2,478				2,486				2,506
Lease liabilities	23,692				25,210				25,457				25,893				—
Accrued expenses and other liabilities	95,684				99,181				77,905				76,686				72,209
Total liabilities	6,921,165				7,724,349				8,396,387				8,938,200				9,684,533
Commitments and contingent liabilities
Preferred stock	189,825				189,825				231,128				231,128				231,128
Common stock	520				520				520				518				518
Common stock, class B non-voting non-convertible	5				5				5				5				5
Additional paid-in capital	629,848				628,774				627,306				626,608				625,834
Retained earnings	127,733				120,221				146,039				136,943				140,952
Treasury stock	(28,786		)		(28,786		)		(28,786		)		(28,786		)		(28,786		)
Accumulated other comprehensive loss, net	(11,900		)		(9,571		)		(12,668		)		(18,091		)		(24,117		)
Total stockholders’ equity	907,245				900,988				963,544				948,325				945,534
Total liabilities and stockholders’ equity	$	7,828,410			$	8,625,337			$	9,359,931			$	9,886,525			$	10,630,067

10

EX. 99.1

Banc of California, Inc.

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended																				Year Ended
	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				December 31, 2019				December 31, 2018
Interest and dividend income
Loans, including fees	$	73,930			$	80,287			$	89,159			$	90,558			$	88,258			$	333,934			$	329,272
Securities	7,812				10,024				12,457				17,841				19,882				48,134				83,567
Other interest-earning assets	1,960				2,346				2,424				2,313				2,990				9,043				9,957
Total interest and dividend income	83,702				92,657				104,040				110,712				111,130				391,111				422,796
Interest expense
Deposits	18,247				22,811				28,598				31,443				28,972				101,099				91,236
Federal Home Loan Bank advances	6,396				8,519				8,289				9,081				9,068				32,285				34,995
Securities sold under repurchase agreements	15				13				16				18				25				62				1,033
Notes payable and other interest-bearing liabilities	2,384				2,399				2,357				2,362				2,383				9,502				9,456
Total interest expense	27,042				33,742				39,260				42,904				40,448				142,948				136,720
Net interest income	56,660				58,915				64,780				67,808				70,682				248,163				286,076
(Reversal of) provision for loan losses	(2,678		)		38,540				(1,987		)		2,512				6,653				36,387				30,215
Net interest income after (reversal of) provision for loan losses	59,338				20,375				66,767				65,296				64,029				211,776				255,861
Noninterest income
Customer service fees	1,451				1,582				1,434				1,515				1,786				5,982				6,315
Loan servicing income	312				128				121				118				22				679				3,720
Income from bank owned life insurance	599				588				580				525				559				2,292				2,176
Impairment loss on investment securities	—				(731		)		—				—				(3,252		)		(731		)		(3,252		)
Net gain (loss) on sale of securities available for sale	3				(5,063		)		—				208				—				(4,852		)		5,532
Net (loss) gain on sale of loans	(833		)		4,326				2,826				1,553				873				7,872				1,932
All other income (loss)	3,398				2,351				(7,251		)		2,376				2,460				874				7,492
Total noninterest income (loss)	4,930				3,181				(2,290		)		6,295				2,448				12,116				23,915
Noninterest expense
Salaries and employee benefits	24,036				25,934				27,506				28,439				24,587				105,915				109,974
Occupancy and equipment	7,900				7,767				7,955				7,686				8,064				31,308				31,847
Professional fees (reimbursement)	2,611				1,463				(2,903		)		11,041				6,206				12,212				33,652
Data processing	1,684				1,568				1,672				1,496				1,733				6,420				6,951
Advertising	2,227				2,090				2,048				2,057				3,371				8,422				12,664
Regulatory assessments	1,854				1,239				2,136				2,482				1,252				7,711				7,678
Reversal of loan repurchase reserves	(360		)		(123		)		(61		)		(116		)		(122		)		(660		)		(2,488		)
Amortization of intangible assets	454				500				621				620				644				2,195				3,007
Restructuring expense (reversal)	1,626				—				(158		)		2,795				(105		)		4,263				4,431
All other expenses	4,114				3,809				5,126				3,385				3,153				16,434				20,025
Total noninterest expense excluding loss (gain) on investments in alternative energy partnerships	46,146				44,247				43,942				59,885				48,783				194,220				227,741
Loss (gain) on investments in alternative energy partnerships	1,039				(940		)		(355		)		1,950				786				1,694				5,044
Total noninterest expense	47,185				43,307				43,587				61,835				49,569				195,914				232,785
Income (loss) from continuing operations before income taxes	17,083				(19,751		)		20,890				9,756				16,908				27,978				46,991
Income tax expense (benefit)	2,811				(5,619		)		4,308				2,719				6,117				4,219				4,844
Income (loss) from continuing operations	14,272				(14,132		)		16,582				7,037				10,791				23,759				42,147
Income from discontinued operations before income taxes	—				—				—				—				347				—				4,596
Income tax expense	—				—				—				—				100				—				1,271
Income from discontinued operations	—				—				—				—				247				—				3,325
Net income (loss)	14,272				(14,132		)		16,582				7,037				11,038				23,759				45,472

11

EX. 99.1

Preferred stock dividends	3,540				3,403				4,308				4,308				4,308				15,559				19,504
Income allocated to participating securities	224				—				271				—				—				—				—
Participating securities dividends	93				94				94				202				203				483				811
Impact of preferred stock redemption	—				5,093				—				—				—				5,093				2,307
Net income (loss) available to common stockholders	$	10,415			$	(22,722	)		$	11,909			$	2,527			$	6,527			$	2,624			$	22,850
Basic earnings (loss) per common share
Income (loss) from continuing operations	$	0.21			$	(0.45	)		$	0.23			$	0.05			$	0.12			$	0.05			$	0.38
Income from discontinued operations	—				—				—				—				0.01				—				0.07
Net income (loss)	$	0.21			$	(0.45	)		$	0.23			$	0.05			$	0.13			$	0.05			$	0.45
Diluted earnings (loss) per common share
Income (loss) from continuing operations	$	0.20			$	(0.45	)		$	0.23			$	0.05			$	0.12			$	0.05			$	0.38
Income from discontinued operations	—				—				—				—				0.01				—				0.07
Net income (loss)	$	0.20			$	(0.45	)		$	0.23			$	0.05			$	0.13			$	0.05			$	0.45
Weighted average number of common shares outstanding
Basic	50,699,915				50,882,227				50,857,137				50,676,722				50,651,805				50,621,785				50,623,222
Diluted	50,927,978				50,882,227				50,964,956				50,846,722				50,812,874				50,724,951				50,724,951
Dividends declared per common share	$	0.06			$	0.06			$	0.06			$	0.13			$	0.13			$	0.31			$	0.52

12

EX. 99.1

Banc of California, Inc.

Selected Financial Data

(Unaudited)

	Three Months Ended
	December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018
Profitability and other ratios of consolidated operations
Return on average assets(1)	0.71	%		(0.64	)%		0.69	%		0.28	%		0.43	%
Return on average equity(1)	6.20	%		(5.83	)%		6.91	%		2.98	%		4.56	%
Return on average tangible common equity(2)	6.46	%		(12.49	)%		7.43	%		1.91	%		4.19	%
Dividend payout ratio(3)	28.57	%		(13.33	)%		26.09	%		260.00	%		100.00	%
Net interest spread	2.65	%		2.47	%		2.50	%		2.47	%		2.56	%
Net interest margin(1)	3.04	%		2.86	%		2.86	%		2.81	%		2.88	%
Noninterest income (loss) to total revenue(4)	8.00	%		5.12	%		(3.66	)%		8.49	%		3.60	%
Noninterest income (loss) to average total assets(1)	0.25	%		0.15	%		(0.10	)%		0.25	%		0.10	%
Noninterest expense to average total assets(1)	2.35	%		1.98	%		1.82	%		2.43	%		1.92	%
Efficiency ratio(2)(5)	76.61	%		69.74	%		69.75	%		83.44	%		67.47	%
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships(2)(5)	74.03	%		70.11	%		67.84	%		83.00	%		67.09	%
Average loans held-for-investment to average deposits	108.50	%		105.92	%		104.38	%		100.45	%		97.40	%
Average securities available-for-sale to average total assets	10.48	%		12.71	%		13.58	%		17.00	%		19.85	%
Average stockholders’ equity to average total assets	11.47	%		11.06	%		10.02	%		9.29	%		9.38	%

(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 common share.

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

(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 (loss).

13

EX. 99.1

Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
Loans and ALLL by loan origination type
Loan breakdown by origination type
Originated loans	$	5,510,242			$	5,888,647			$	6,181,583			$	6,991,056			$	7,105,171
Acquired loans not impaired at acquisition	441,643				494,612				537,987				566,144				595,702
Total loans	$	5,951,885			$	6,383,259			$	6,719,570			$	7,557,200			$	7,700,873
ALLL breakdown by origination type
Originated loans	$	56,175			$	61,306			$	58,135			$	63,003			$	61,255
Acquired loans not impaired at acquisition	1,474				1,621				1,388				882				937
Total ALLL	$	57,649			$	62,927			$	59,523			$	63,885			$	62,192
Discount on acquired loans not impaired at acquisition	$	8,071			$	9,062			$	10,680			$	11,184			$	11,645
Percentage of ALLL to:
Originated loans	1.02		%		1.04		%		0.94		%		0.90		%		0.86		%
Total loans	0.97		%		0.99		%		0.89		%		0.85		%		0.81		%

14

EX. 99.1

Banc of California, Inc.

Average Balance, Average Yield Earned, and Average Cost Paid

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	December 31, 2019											September 30, 2019											June 30, 2019
	Average								Yield			Average								Yield			Average								Yield
	Balance				Interest				/ Cost			Balance				Interest				/ Cost			Balance				Interest				/ Cost
Interest earning assets
Loans held-for-sale	$	23,527			$	221			3.73	%		$	216,746			$	1,894			3.47	%		$	47,233			$	265			2.25	%
SFR mortgage	1,689,228				16,788				3.94	%		1,866,103				19,179				4.08	%		2,059,704				21,390				4.17	%
Commercial real estate, multifamily, and construction	2,633,342				32,763				4.94	%		2,717,609				33,343				4.87	%		3,406,672				39,659				4.67	%
Commercial and industrial, SBA, and lease financing	1,821,064				23,381				5.09	%		1,840,202				24,970				5.38	%		1,872,289				26,940				5.77	%
Other consumer	54,088				777				5.70	%		58,652				901				6.09	%		59,806				905				6.07	%
Gross loans and leases	6,221,249				73,930				4.71	%		6,699,312				80,287				4.75	%		7,445,704				89,159				4.80	%
Securities	833,726				7,812				3.72	%		1,105,499				10,024				3.60	%		1,304,876				12,457				3.83	%
Other interest-earning assets	330,950				1,960				2.35	%		362,613				2,346				2.57	%		342,908				2,424				2.84	%
Total interest-earning assets	7,385,925				83,702				4.50	%		8,167,424				92,657				4.50	%		9,093,488				104,040				4.59	%
Allowance for loan losses	(61,642		)									(55,976		)									(63,046		)
BOLI and noninterest earning assets	630,308											584,190											580,133
Total assets	$	7,954,591										$	8,695,638										$	9,610,575
Interest-bearing liabilities
Savings	$	981,346			$	3,889			1.57	%		$	1,055,086			$	4,722			1.78	%		$	1,083,571			$	4,950			1.83	%
Interest-bearing checking	1,546,322				4,234				1.09	%		1,511,432				4,483				1.18	%		1,580,165				4,554				1.16	%
Money market	743,695				2,593				1.38	%		755,114				3,093				1.63	%		853,007				3,902				1.83	%
Certificates of deposit	1,332,911				7,531				2.24	%		1,750,970				10,513				2.38	%		2,537,060				15,192				2.40	%
Total interest-bearing deposits	4,604,274				18,247				1.57	%		5,072,602				22,811				1.78	%		6,053,803				28,598				1.89	%
FHLB advances	1,020,478				6,396				2.49	%		1,333,739				8,519				2.53	%		1,287,121				8,289				2.58	%
Securities sold under repurchase agreements	2,223				15				2.68	%		1,922				13				2.68	%		2,173				16				2.95	%
Long-term debt and other interest-bearing liabilities	174,092				2,384				5.43	%		174,111				2,399				5.47	%		174,161				2,357				5.43	%
Total interest-bearing liabilities	5,801,067				27,042				1.85	%		6,582,374				33,742				2.03	%		7,517,258				39,260				2.09	%
Noninterest-bearing deposits	1,108,077											1,047,858											1,034,205
Noninterest-bearing liabilities	132,698											103,667											96,179
Total liabilities	7,041,842											7,733,899											8,647,642
Total stockholders’ equity	912,749											961,739											962,933
Total liabilities and stockholders’ equity	$	7,954,591										$	8,695,638										$	9,610,575
Net interest income/spread					$	56,660			2.65	%						$	58,915			2.47	%						$	64,780			2.50	%
Net interest margin									3.04	%										2.86	%										2.86	%
Ratio of interest-earning assets to interest-bearing liabilities	127.32		%									124.08		%									120.97		%
Total deposits	$	5,712,351			$	18,247			1.27	%		$	6,120,460			$	22,811			1.48	%		$	7,088,008			$	28,598			1.62	%
Total funding (1)	$	6,909,144			$	27,042			1.55	%		$	7,630,232			$	33,742			1.75	%		$	8,551,463			$	39,260			1.84	%

(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 funding.

15

EX. 99.1

	Three Months Ended
	March 31, 2019											December 31, 2018
	Average								Yield			Average								Yield
	Balance				Interest				/ Cost			Balance				Interest				/ Cost
Interest earning assets
Loans held-for-sale (1)	$	31,374			$	228			2.95	%		$	33,243			$	221			2.64	%
SFR mortgage	2,312,900				24,062				4.22	%		2,260,205				23,585				4.14	%
Commercial real estate, multifamily, and construction	3,387,698				38,117				4.56	%		3,246,860				37,403				4.57	%
Commercial and industrial, SBA, and lease financing	1,920,220				27,235				5.75	%		1,791,708				26,219				5.81	%
Other consumer	62,558				916				5.94	%		68,479				990				5.74	%
Gross loans and leases	7,714,750				90,558				4.76	%		7,400,495				88,418				4.74	%
Securities	1,751,509				17,841				4.13	%		2,032,632				19,882				3.88	%
Other interest-earning assets	321,823				2,313				2.91	%		318,419				2,990				3.73	%
Total interest-earning assets	9,788,082				110,712				4.59	%		9,751,546				111,290				4.53	%
Allowance for loan losses	(61,924		)									(58,099		)
BOLI and non-interest earning assets	575,559											544,302
Total assets	$	10,301,717										$	10,237,749
Interest-bearing liabilities
Savings	1,201,802				5,480				1.85	%		1,279,155				5,663				1.76	%
Interest-bearing checking	1,554,846				4,525				1.18	%		1,666,884				4,916				1.17	%
Money market	887,538				4,128				1.89	%		803,157				3,168				1.56	%
Certificates of deposit	2,982,980				17,310				2.35	%		2,759,665				15,225				2.19	%
Total interest-bearing deposits	6,627,166				31,443				1.92	%		6,508,861				28,972				1.77	%
FHLB advances	1,422,100				9,081				2.59	%		1,447,348				9,068				2.49	%
Securities sold under repurchase agreements	2,350				18				3.11	%		3,116				25				3.18	%
Long-term debt and other interest-bearing liabilities	174,230				2,362				5.50	%		174,281				2,383				5.42	%
Total interest-bearing liabilities	8,225,846				42,904				2.12	%		8,133,606				40,448				1.97	%
Noninterest-bearing deposits	1,021,741											1,054,790
Non-interest-bearing liabilities	97,430											89,111
Total liabilities	9,345,017											9,277,507
Total stockholders’ equity	956,700											960,242
Total liabilities and stockholders’ equity	$	10,301,717										$	10,237,749
Net interest income/spread					$	67,808			2.47	%						$	70,842			2.56	%
Net interest margin									2.81	%										2.88	%
Ratio of interest-earning assets to interest-bearing liabilities	118.99		%									119.89		%
Total deposits	$	7,648,907			$	31,443			1.67	%		$	7,563,651			$	28,972			1.52	%
Total funding (2)	$	9,247,587			$	42,904			1.88	%		$	9,188,396			$	40,448			1.75	%

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

(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.

16

EX. 99.1

	Year Ended
	December 31, 2019											December 31, 2018
	Average								Yield			Average								Yield
	Balance				Interest				/ Cost			Balance				Interest				/ Cost
Interest earning assets
Loans held-for-sale (1)	$	80,074			$	2,609			3.26	%		$	56,757			$	1,109			1.95	%
SFR mortgage	1,979,957				81,419				4.11	%		2,207,689				91,188				4.13	%
Commercial real estate, multifamily, and construction	3,033,392				143,882				4.74	%		3,047,164				138,416				4.54	%
Commercial and industrial, SBA, and lease financing	1,863,108				102,526				5.50	%		1,716,631				95,115				5.54	%
Other consumer	58,752				3,498				5.95	%		80,359				4,109				5.11	%
Gross loans and leases	7,015,283				333,934				4.76	%		7,108,600				329,937				4.64	%
Securities	1,245,995				48,134				3.86	%		2,248,488				83,567				3.72	%
Other interest-earning assets	339,661				9,043				2.66	%		362,927				9,957				2.74	%
Total interest-earning assets	8,600,939				391,111				4.55	%		9,720,015				423,461				4.36	%
Allowance for loan losses	(60,633		)									(54,777		)
BOLI and non-interest earning assets	592,674											559,675
Total assets	$	9,132,980										$	10,224,913
Interest-bearing liabilities
Savings	1,079,778				19,040				1.76	%		1,156,292				17,971				1.55	%
Interest-bearing checking	1,548,067				17,797				1.15	%		1,812,980				18,261				1.01	%
Money market	809,295				13,717				1.69	%		994,103				13,146				1.32	%
Certificates of deposit	2,145,363				50,545				2.36	%		2,272,093				41,858				1.84	%
Total interest-bearing deposits	5,582,503				101,099				1.81	%		6,235,468				91,236				1.46	%
FHLB advances	1,264,945				32,285				2.55	%		1,627,608				34,995				2.15	%
Securities sold under repurchase agreements	2,166				62				2.86	%		39,336				1,033				2.63	%
Long-term debt and other interest-bearing liabilities	174,148				9,502				5.46	%		174,340				9,456				5.42	%
Total interest-bearing liabilities	7,023,762				142,948				2.04	%		8,076,752				136,720				1.69	%
Noninterest-bearing deposits	1,053,193											1,034,937
Non-interest-bearing liabilities	107,579											117,904
Total liabilities	8,184,534											9,229,593
Total stockholders’ equity	948,446											995,320
Total liabilities and stockholders’ equity	$	9,132,980										$	10,224,913
Net interest income/spread					$	248,163			2.51	%						$	286,741			2.67	%
Net interest margin									2.89	%										2.95	%
Ratio of interest-earning assets to interest-bearing liabilities	122.45		%									120.35		%
Total deposits	$	6,635,696			$	101,099			1.52	%		$	7,270,405			$	91,236			1.25	%
Total funding (2)	$	8,076,955			$	142,948			1.77	%		$	9,111,689			$	136,720			1.50	%

(1) Includes loans held-for-sale of discontinued operations for the year ended December 31, 2018.

(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.

17

EX. 99.1

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, tangible common equity to tangible assets, and tangible common equity per common share constitute supplemental financial information determined by methods other than in accordance with GAAP. These non-GAAP measures are used by management in its analysis of the Company's performance.

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

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

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

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

18

EX. 99.1

	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
Tangible common equity, and tangible common equity to tangible assets ratio
Total assets	$	7,828,410			$	8,625,337			$	9,359,931			$	9,886,525			$	10,630,067
Less goodwill	(37,144		)		(37,144		)		(37,144		)		(37,144		)		(37,144		)
Less other intangible assets	(4,151		)		(4,605		)		(5,105		)		(5,726		)		(6,346		)
Tangible assets(1)	$	7,787,115			$	8,583,588			$	9,317,682			$	9,843,655			$	10,586,577
Total stockholders' equity	$	907,245			$	900,988			$	963,544			$	948,325			$	945,534
Less goodwill	(37,144		)		(37,144		)		(37,144		)		(37,144		)		(37,144		)
Less other intangible assets	(4,151		)		(4,605		)		(5,105		)		(5,726		)		(6,346		)
Tangible equity(1)	865,950				859,239				921,295				905,455				902,044
Less preferred stock	(189,825		)		(189,825		)		(231,128		)		(231,128		)		(231,128		)
Tangible common equity(1)	$	676,125			$	669,414			$	690,167			$	674,327			$	670,916
Total stockholders' equity to total assets	11.59		%		10.45		%		10.29		%		9.59		%		8.89		%
Tangible equity to tangible assets(1)	11.12		%		10.01		%		9.89		%		9.20		%		8.52		%
Tangible common equity to tangible assets(1)	8.68		%		7.80		%		7.41		%		6.85		%		6.34		%
Common shares outstanding	50,413,681				50,406,763				50,397,769				50,315,490				50,172,018
Class B non-voting non-convertible common shares outstanding	477,321				477,321				477,321				477,321				477,321
Total common shares outstanding	50,891,002				50,884,084				50,875,090				50,792,811				50,649,339
Tangible common equity per common share(1)	$	13.29			$	13.16			$	13.57			$	13.28			$	13.25
Book value per common share	$	14.10			$	13.98			$	14.40			$	14.12			$	14.10

(1)Non-GAAP measure.

19

EX. 99.1

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended
	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
Return on tangible common equity
Average total stockholders' equity	$	912,749			$	961,739			$	962,933			$	956,700			$	960,242
Less average preferred stock	(189,824		)		(213,619		)		(231,128		)		(231,128		)		(231,128		)
Less average goodwill	(37,144		)		(37,144		)		(37,144		)		(37,144		)		(37,144		)
Less average other intangible assets	(4,441		)		(4,935		)		(5,503		)		(6,128		)		(6,731		)
Average tangible common equity(1)	$	681,340			$	706,041			$	689,158			$	682,300			$	685,239
Net income (loss)	$	14,272			$	(14,132	)		$	16,582			$	7,037			$	11,038
Less preferred stock dividends and impact of preferred stock redemption	(3,540		)		(8,496		)		(4,308		)		(4,308		)		(4,308		)
Add amortization of intangible assets	454				500				621				620				644
Less tax effect on amortization and impairment of intangible assets	(95		)		(105		)		(130		)		(130		)		(135		)
Net income (loss) available to common stockholders(1)	$	11,091			$	(22,233	)		$	12,765			$	3,219			$	7,239
Return on average equity	6.20		%		(5.83		)%		6.91		%		2.98		%		4.56		%
Return on average tangible common equity(1)	6.46		%		(12.49		)%		7.43		%		1.91		%		4.19		%
Statutory tax rate utilized for calculating tax effect on amortization of intangible assets	21.00		%		21.00		%		21.00		%		21.00		%		21.00		%

	Three Months Ended
	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships
Noninterest expense	$	47,185			$	43,307			$	43,587			$	61,835			$	49,578
(Loss) gain on investments in alternative energy partnerships	(1,039		)		940				355				(1,950		)		(786		)
Adjusted noninterest expense(1)	$	46,146			$	44,247			$	43,942			$	59,885			$	48,792
Net interest income	$	56,660			$	58,915			$	64,780			$	67,808			$	70,842
Noninterest income	4,930				3,181				(2,290		)		6,295				2,644
Total revenue	61,590				62,096				62,490				74,103				73,486
Tax credit from investments in alternative energy partnerships	1,689				77				1,680				—				—
Deferred tax expense on investments in alternative energy partnerships	(177		)		(8		)		(176		)		—				—
Tax effect on tax credit and deferred tax expense	267				7				426				—				26
(Loss) gain on investments in alternative energy partnerships	(1,039		)		940				355				(1,950		)		(786		)
Total pre-tax adjustments for investments in alternative energy partnerships	740				1,016				2,285				(1,950		)		(760		)
Adjusted total revenue(1)	$	62,330			$	63,112			$	64,775			$	72,153			$	72,726
Efficiency ratio(1)	76.61		%		69.74		%		69.75		%		83.44		%		67.47		%
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships(1)	74.03		%		70.11		%		67.84		%		83.00		%		67.09		%
Effective tax rate utilized for calculating tax effect on tax credit and deferred tax expense	15.00		%		9.36		%		22.07		%		27.00		%		27.42		%

(1)Non-GAAP measure.

(2)2018 balances includes income from discontinued operations.

20

EX. 99.1

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended
	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
Total noninterest expense excluding loss (gain) on investments in alternative energy partnerships	$	46,146			$	44,247			$	43,942			$	59,885			$	48,783
Loss (gain) on investments in alternative energy partnerships	1,039				(940		)		(355		)		1,950				786
Total noninterest expense	47,185				43,307				43,587				61,835				49,569
Adjustment for non-core items
Data processing	—				—				(797		)		—				—
Professional fees	3,557				2,615				6,214				(2,979		)		2,711
Restructuring (expense) reversal	(1,626		)		—				158				(2,795		)		105
Other expenses	—				(131		)		—				—				585
Total	49,116				45,791				49,162				56,061				52,970
(Loss) gain on investments in alternative energy partnerships	(1,039		)		940				355				(1,950		)		(786		)
Total operating expense	$	48,077			$	46,731			$	49,517			$	54,111			$	52,184

(1)Non-GAAP measure.

21