EX-99.1 2 bancinvestordeck_ndr2023.htm EX-99.1
www.bancofcal.com Investor Presentation Q4 2022

2 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Forward Looking Statements When used in this report and in documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “believe,” “will,” “should,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the “Safe- Harbor” provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements. These statements may relate to future financial performance, strategic plans or objectives, revenue, expense or earnings projections, or other financial items of Banc of California, Inc. and its affiliates (“BANC,” the “Company”, “we”, “us” or “our”). By their nature, these statements are subject to numerous uncertainties that could cause actual results to differ materially from those anticipated in the statements. Factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to, the following: (i) the continuing effects of the COVID-19 pandemic and steps taken by governmental and other authorities to contain, mitigate, and combat the pandemic on our business, operations, financial performance and prospects; (ii) the costs and effects of litigation, including legal fees and other expenses, settlements and judgments; (iii) the risk that we will not be successful in the implementation of our capital utilization strategy, new lines of business, new products and services, or other strategic project initiatives; (iv) risks that the Company’s merger and acquisition transactions may disrupt current plans and operations and lead to difficulties in customer and employee retention, risks that the costs, fees, expenses and charges related to these transactions could be significantly higher than anticipated and risks that the expected revenues, cost savings, synergies, and other benefits of these transactions might not be realized to the extent anticipated, within the anticipated timetables, or at all and, in the case of our recent acquisition of Deepstack Technologies, reputational risk, regulatory risk and potential adverse reactions of the Company's or Deepstack's customers, suppliers, vendors, employees or other business partners; (v) the credit risks of lending activities, which may be affected by deterioration in real estate markets and the financial condition of borrowers, and the operational risk of lending activities, including but not limited to, the effectiveness of our underwriting practices and the risk of fraud, any of which may lead to increased loan delinquencies, losses, and nonperforming assets in our loan portfolio, and may result in our allowance for credit losses not being adequate and require us to materially increase our credit loss reserves; (vi) the quality and composition of our securities portfolio; (vii) changes in general economic conditions, either nationally or in our market areas, including the impact of supply chain disruptions, or changes in financial markets, and the risk of recession or an economic downtrun; (viii) changes in the interest rate environment and levels of general interest rates, including the recent and anticipated increases by the FRB in its benchmark rate, the impacts of inflation, the relative differences between short- and long-term interest rates, deposit interest rates, our net interest margin, and funding sources; (ix) fluctuations in the demand for loans, and fluctuations in commercial and residential real estate values in our market area; (x) our ability to develop and maintain a strong core deposit base or other low cost funding sources necessary to fund our activities; (xi) results of examinations of us by regulatory authorities and the possibility that any such regulatory authority may, among other things, limit our business activities, require us to change our business mix, restrict our ability to invest in certain assets, increase our allowance for credit losses, result in write-downs of asset values, increase our capital levels, affect our ability to borrow funds or maintain or increase deposits, or impose fines, penalties or sanctions, any of which could adversely affect our liquidity and earnings; (xii) legislative or regulatory changes that adversely affect our business, including, without limitation, changes in tax laws and policies, changes in privacy laws, and changes in regulatory capital or other rules, and the availability of resources to address or respond to such changes; (xiii) our ability to control operating costs and expenses; (xiv) staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; (xv) the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses; (xvi) errors in estimates of the fair values of certain of our assets and liabilities, which may result in significant changes in valuation; (xvii) uncertainty regarding the expected discontinuation of the London Interbank Offered Rate (“LIBOR”) and the use of alternative reference rates; (xviii) failures or security breaches with respect to the network, applications, vendors and computer systems on which we depend, including but not limited to, due to cybersecurity threats; (xix) our ability to attract and retain key members of our senior management team; (xx) increased competitive pressures among financial services companies; (xxi) changes in consumer spending, borrowing and saving habits; (xxii) the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business; (xxiii) the ability of key third-party providers to perform their obligations to us; (xxiv) changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board or their application to our business, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting standards; (xxv) continuing impact of the Financial Accounting Standards Board’s credit loss accounting standard, referred to as Current Expected Credit Loss, which requires financial institutions to determine periodic estimates of lifetime expected credit losses on loans, and provide for the expected credit losses as allowances for loan losses; (xxvi) share price volatility and reputational risks, related to, among other things, speculative trading and certain traders shorting our common shares and attempting to generate negative publicity about us; (xxvii) our ability to obtain regulatory approvals or non-objection to take various capital actions, including the payment of dividends by us or our bank subsidiary, or repurchases of our common stock; and (xxviii) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described in this report and from time to time in other documents that we file with or furnish to the SEC.

3 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Executive Management Team Together Since 2019; Track Record of Strong Performance At Larger Institutions Jared Wolff (Joined 2019), President and Chief Executive Officer A veteran California banking executive with deep expertise in finance, law and risk management, Mr. Wolff joined BANC from City National Bank, a Los Angeles-based $90 billion asset regional bank and subsidiary of Royal Bank of Canada, where he was EVP and General Counsel, and served on the bank’s executive committee. Prior to City National, Mr. Wolff was President and a member of the Board of Directors of Pacific Western Bank, a subsidiary of PacWest Bancorp (NASDAQ: PACW) and where he previously served as EVP and General Counsel. During his tenure, Mr. Wolff oversaw more than 20 acquisitions and joined PacWest from the law firm Sullivan & Cromwell, LLP. Lynn Hopkins (2019) Chief Financial Officer 30+ years of leadership positions, previously served as EVP, CFO of First Choice Bank and EVP, CAO of PacWest Bancorp John Sotoodeh (2019) Chief Operating Officer 30+ years of banking experience, previously held several key executive positions at Wells Fargo Hamid Hussain (2019) President of the Bank 25+ years of banking experience, previously served as EVP, Real Estate Market Executive for Wells Fargo Ido Dotan (2019), General Counsel and Chief Administrative Officer Experienced in corporate securities, M&A, and structured finance. Previously served as EVP of Carrington Mortgage Holdings Debbie Dahl-Amundson (2019) Chief Internal Audit Officer Leads the internal audit group and SOX Compliance, previously served as Assistant General Auditor for PNC Bob Dyck (2019) Chief Credit Officer 35+ years of highly skilled credit experience, previously served at PacWest Bancorp as CCO for the Community Banking Division Olivia Lindsay (2016) Chief Risk Officer 20+ years of experience in regulatory processes and controls, previously spent 15 years at MUFG Union Bank Jay Sanders (2016) President, Specialty Banking 25+ years of leadership experience in financial services including at CIT and Merrill Lynch Alex Kweskin (2021) Chief Human Resources Officer 25+ years of experience in human resources, previously served in leadership positions for MUFG Union Bank and Wells Fargo

4 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. 14.8%(1) Adjusted FY2022 ROTCE $7.1 Billion Total Loans (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation. 4Q22 capital ratios are preliminary. FY2022 includes a $31.3 million pre-tax reversal of credit losses due to the recovery from the settlement of a previously charged-off loan. Data as of 4Q22 except where noted. • Relationship-focused business banking: High touch service-oriented model designed to be the hub of the financial services ecosystem for clients • 34 offices including 28 full-service branches located throughout Southern California • 12th largest bank by assets headquartered in California, the 5th largest economy in the world • Conservative balance sheet well positioned to manage through an economic downturn or recession • Strong capital position and robust profitability Banc of California Overview 9.2%(1) TCE Ratio 41% Average NIB Deposits $9.2 Billion Total Assets $7.1 Billion Total Deposits Growing EPS | Strong NIB Deposits | Consistent Credit | Robust Capital • With a full stack payment processing solution through our Deepstack subsidiary, BANC has a unique opportunity to combine banking and payments for SMID and larger companies 82%(1) Adjusted EPS FY2022 / FY2021 0.60% Average NPA Ratio

5 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. ~2/3 of loans backed by residential real estate and a robust 1.28% loan loss reserve Positioned to Deliver Through an Economic Downturn Potential for Diversified Earnings Stream Acquisition of Deepstack Deepstack’s payments solution adds potential for more diversified earnings stream and new opportunities to grow core deposits that is not reflected in our current valuation BANC trades for 1.2x TBVPS and 10.1x 2023E EPS vs. Peers at 2.0x TBVPS and 10.6x 2023E BANC is a Compelling Value Proposition Against Top Peers(1) Leading Presence in a Top 5 Global Economy Strong Credit Profile A Top Deposit Franchise 4Q22 Average NIB Deposits of 41% NIB Deposits / Total Deposits doubled over the last three years 4.2 million Businesses in CA(2) Significant opportunity to continue to add commercial operating accounts in California, the 5th largest stand-alone economy in the world Strong Capital and TBVPS Protection Capital Flexibility >9% TCE Ratio and >11% CET 1 Ratio provides ample capital to continue to deliver long-term shareholder value (1) Peers include all publicly traded U.S. banks between $5B and $50B in assets with >35% NIB Deposits / Total Deposits. Peer data reflects YTD information as of 3Q22 unless 4Q22 has been reported as of 1/23/2023. Stock Price and P/E estimates as of 1/23/2023 per S&P Global Market Intelligence. (2) Source: U.S. Small Business Administration.

6 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. BANC Aims to be the Hub of the Financial Services Ecosystem for our Clients Focus on Core Business Banking and Serving SMID Size Businesses that Power our Markets COMMUNITY BANKING • Personal Banking • Savings and Investments COMMERCIAL & BUSINESS BANKING • Full stack payment processing solution through our Deepstack subsidiary • Business Banking • Middle Market Banking • Asset-Based Lending & Term Loans • Depository Services • Cash Management and Treasury Management Solutions SPECIALTY BANKING • Entertainment • Healthcare & Education • Professional Services • Foundations/Non-Profit Banking • Government • Business Management Banking • CRE & Multifamily Lending • Mortgage Warehouse Lending • Bridge & Construction Lending • Cash Management and Treasury Management Solutions • Escrow • Bankruptcy/Fiduciary Services • Title/1031/Property Management • Government Banking • Institutional Deposits • Tailored Cash Management and Credit Solutions SPECIALTY DEPOSITS

7 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Executing On Planned Strategic Initiatives Phase One 2019-2020 Building the Foundation(1) • Improved deposit mix  Noninterest bearing deposits increased to ~40% of total deposits from 14% • Reduced cost of funds and capital  Improved deposit mix resulting in an 84 bps increase in the NIM  Refinanced term debt including, FHLBs and AFS securities, increasing asset sensitivity  Redeemed $240mm of Preferred Series D & E; savings of ~$17mm per year • Rightsized balance sheet  Assets decreased 5%; resulting in increased capital ratios • Reduced expenses  81 FTE reduction and noninterest expense reduced 14% (includes exited LAFC Agreement)  Exited SFR mortgage origination Phase Two 2021 Profitable Growth  Optimized deposit mix and grew DDA balances  Grew total loan balances  Realized operating leverage  Maintained/Expanded net interest margin  Expanded commercial customer base  Grew and optimized capital Phase Three 2022 and Beyond High performing Institution Consistently generate performance that compares favorably to peer group: • ROAA, ROATCE • Consistent and stable earnings • Efficiency ratio • Grow revenues and diversify sources • Cost / mix of deposits • Minimize credit noise / continue stable credit quality • Protect and grow TBVPS • Strong capital ratios • Payments / fee income growth Additional Initiatives that are Accelerating Financial Performance • Terminated LAFC Agreement • Moved a portion of securities to HTM • Repurchased 7% of Shares in 2022 • Grew NIBs to 41% of avg. 4Q22 deposits • Acquired Pacific Mercantile Bank • Acquired Deepstack to Generate New Sources of Fee Income and Deposits (1) Change indicated from FY2019 through FY2022.

8 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Fourth Quarter and FY 2022 Results Continued to Strengthen the Franchise (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation. (2) 4Q22 capital ratios are preliminary. ($ in Thousands Except Per Share Data) 4Q22 3Q22 4Q21 Net interest income $ 80,217 $ 79,408 $ 73,039 Provision for credit losses - - $ 11,262 Net income $ 21,519 $ 24,196 $ 5,751 Net income available to common stockholders $ 21,519 $ 24,196 $ 4,024 Earnings per diluted common share $ 0.36 $ 0.40 $ 0.07 Adjusted net income(1) $ 26,764 $ 26,732 $ 14,831 Adjusted net income available to common stockholders(1) $ 26,764 $ 26,732 $ 13,104 Adjusted earnings per diluted common share(1) $ 0.45 $ 0.44 $ 0.22 Pre-tax pre-provision (PTPP) income(1) $ 30,587 $ 34,127 $ 19,772 Adjusted PTPP income(1) $ 38,034 $ 37,728 $ 32,663 Return on average assets (ROAA) 0.92% 1.02% 0.24% Adjusted ROAA(1) 1.15% 1.13% 0.63% PTPP ROAA(1) 1.31% 1.44% 0.84% Adjusted PTPP ROAA(1) 1.63% 1.59% 1.39% Average assets $ 9,257,311 $ 9,408,740 $ 9,331,955 Net interest margin 3.69% 3.58% 3.28% Allowance for credit losses coverage ratio 1.28% 1.36% 1.35% NIE / Average Assets(1) 2.07% 2.15% 2.50% Adjusted NIE / Average Assets(1) 2.08% 2.00% 1.95% Common equity tier 1(2) 11.88% 11.43% 11.31% Tangible common equity per share(1) $ 14.19 $ 13.79 $ 13.88 Noninterest-bearing deposits as % of total ending deposits 39.5% 40.4% 37.5%

9 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. (1) FY2019 includes a $35.1 million pre-tax provision for credit losses due to the charge-off of a single loan and FY2022 includes a $31.3 million pre-tax reversal of credit losses due to the recovery from the settlement of such loan. -2% Management Has Consistently Outperformed Peers in Terms of Relative Change Since 2019 BANC FY2019(1) BANC FY2022(1) Peers(2) $0.17 $2.10 +1,135% Adjusted EPS(3) Delivering on our Strategic Transformation Plan BANC FY2019 (1) BANC FY2022 (1) Peers(2) 0.27% 1.39% +415% Adjusted ROAA(3) BANC 2019 (1) BANC 2022 (1) Peers(2) $13.29 $14.19 +7% TBVPS(3) BANC 2019 (1) BANC 2022 (1) Peers(2) 11.6% 11.9% +3% CET 1 BANC 2019 (1) BANC 2022 (1) Peers(2) 8.68% 9.23% +6% TCE Ratio(3) BANC FY2019 BANC FY2022 Peers(2) 2.89% 3.59% +24% Net Interest Margin BANC FY2019 BANC FY2022 Peers(2) 75.4% 55.8% -26% Adjusted Efficiency Ratio(3) BANC 2019 BANC 2022 Peers(2) 20.1% 39.5% +97% NIB Deposits / Total Deposits +25% -5% +6% -23% -5% -3% +27% (2) Peers include all publicly traded U.S. banks between $5B and $50B in assets with >35% NIB Deposits / Total Deposits. Peer data reflects YTD information as of 3Q22 unless 4Q22 has been reported as of 1/23/2023. Data for peers per S&P Global Market Intelligence. (3) Represents a non-GAAP or adjusted measure for BANC at or for the year-ended December 31. See appendix for non-GAAP reconciliation.

10 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Peers with >35% NIB Deposits trade for an avg. of 2.0x TBVPS and 10.6x 2023E EPS Strong Current Performance Against Top NIB Deposit Peers BANC(1) Peers(2) 2% -12% 2022 TBVPS Change BANC Peers(2) 11.9% 12.1% 2022 CET 1 Ratio BANC(1) Peers(2) 9.23% 7.74% 2022 TCE Ratio BANC Peers(2) 3.59% 3.44% FY2022 Net Interest Margin BANC(1) Peers(2) 55.8% 54.4% FY2022 Adj. Efficiency Ratio BANC(1) Peers(2) 7.4% 19.3% FY2022 Adj. Noninterest Inc / Revenue BANC Peers(2) 39.5% 42.5% 2022 NIB Deposits / Total Deposits 1.15% 0.24% BANC(1) Peers(2) 1.39% 1.31% FY2022 Adjusted ROAA Deepstack to Accelerate Fee Income Growth and Narrow the Fee Income Gap Represents the impact of a $31.3 million pre-tax reversal of credit losses due to the recovery from the settlement of a previously charged-off loan (1) Represents a non-GAAP or adjusted measure for BANC. S e appendix f r no -GAAP reconciliation. (2) Peers include all publicly traded U.S. banks between $5B and $50B in assets with >35% NIB Deposits / Total Deposits. Peer data reflects YTD information as of 3Q22 unless 4Q22 has been reported as of 1/23/2023. Data for peers per S&P Global Market Intelligence. Stock price as of 1/23/2023.

11 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Overview of Deepstack Technologies Acquisition  Provides Banc of California with proprietary payments software solution and entrance into payment processing space for business customers  Provides opportunity to offer payment processing services to current Banc of California clients as well as integrated software vendors (“ISVs”), e-commerce marketplaces, fintechs and other merchants serving business clients. Opening deposit accounts at Banc of California will give businesses same day visibility into merchant transactions and faster funding  Provides a meaningful opportunity to grow fee income and core deposits  Further differentiates the Banc of California experience and provides commercial banking teams with another tool for developing relationships with commercial clients in California  Advances Banc of California’s goal to be the hub of the financial services ecosystem for clients while creating another driver of profitable long-term growth and franchise value  Advanced Technology: Built to ISO 8583 standards, with ability to accurately process transactions at a speed and volume capable of connecting directly to card brands. Eventually can reduce processing costs while also having the ability to build data warehouse necessary to provide real-time insights for clients Deepstack Technologies LLC (“Deepstack”) is a Wholly owned Subsidiary of BANC ➢ Software-led and e-commerce payments platform that provides clients with payment solutions, including merchant processing, payments acceptance and disbursements, tokenization, virtual accounts, fraud protection tools, chargeback management, and reconciliation and reporting services Overview ➢ Founded: 2010 ➢ Employees located in Southern CA and in FL ➢ All employees joined BANC ➢ www.deepstack.io

12 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Owning the technology that powers payment processing offers clients same day visibility into their receivables when they have their merchant settlement account at BANC, providing BANC with another source of NIB deposits Deepstack Technologies - A Full Suite of Payments Capabilities Few Other Banks Have Scalable, Meaningful Fee-Based Income • Provides BANC with growing source of recurring fee income New Clients in Verticals Attractive to BANC • Mid-size ISVs targeting businesses need customized payment solutions that help them overcome payment and banking system barriers that processors and banks don’t offer today Generates Noninterest-Bearing (NIB) Deposits • Same day visibility into merchant transactions will be available to merchants who open their settlement account at Banc of California – a service few other merchant processors currently provide Customer Solutions Via Technology Focus • Banc of California is providing all the solutions business clients need under one roof Franchise Enhancing • A proprietary, software-based payments platform that can be customized for clients Company Needs Current BANC Platform BANC + Deepstack Credit Lines   Business Loans   Deposit Accounts   Treasury Management   ACH Processing   Payment Processing  Card Acceptance  Payout Management  Fraud & Chargeback Management  Tailored Payments / Reporting Products  Tr ad iti on al B an ki ng S er vi ce s N ew C lie nt S er vi ce s

13 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Owning the Payment Tech Stack and a Direct to Merchant Software Solution Provides BANC with Compelling Economics Illustrative: $100 Transaction Value with a 250 bps Credit Card Transaction Fee Bank Sponsor Card Networks (V, MC) Interchange rate (Issuer) 10 bps 78 bps 7 bps 149 bps 4 bpsGateway (NMI, etc.) Processor (TSYS, First Data, etc.) ISO Typical Bank Sponsoring ISOs (Low/Mid Risk Merchants) Card Networks (V, MC) Interchange rate (Issuer) 10 bps 7 bps 149 bps Processor (TSYS, First Data, etc.) Current State: BANC – Deepstack Handling the Front-end Card Networks (V, MC) Interchange rate (Issuer) 10 bps 149 bps Future State: BANC – Deepstack Handling the Front-end & the Back-end 2 bps 84 bps 91 bps BANC may pay a referral fee of up to 39 bps or 50% of the ISO fee (39 bps) BANC Earns: 45 bps to 84 bps (39 bps) Bank Only Sponsoring ISOs Earns: 2 bps BANC / Deepstack: • Processor: 7 bps • Gateway: 4 bps • No ISO: 78 bps • Bank Sponsor: 2 bps Total: 91 bps BANC / Deepstack: • Gateway: 4 bps • No ISO: 78 bps • Bank Sponsor: 2 bps Total: 84 bps 52 bps to 91 bpsBANC Earns: BANC may pay a referral fee of up to 39 bps or 50% of the ISO fee Transaction has the potential to generate fees of up to 91 bps in front-end and back-end fee income

14 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Consistent Growth in Commercial Noninterest-Bearing Deposits (NIB) and Number of Accounts 9,920 10,945 11,270 11,444 11,644 14,244 14,292 14,300 14,541 14,497 2019Y 2020Y 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 $1,001 $1,339 $1,519 $1,605 $1,920 $2,550 $2,651 $2,476 $2,592 $2,433 NIB Business Deposits Accounts NIB Business Deposits 4Q21 Includes PMB Acquisition NIB Commercial Deposits Comprise 89% of Total NIB Deposits

15 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Strong Margin and Earning Asset Yield 3.09% 0.51% 0.09% 1.02% 3Q20 4.04% 3.38% 0.36% 0.09% 0.89% 4Q20 3.78% 3.19% 0.28% 0.08% 0.83% 3.81% 3.27% 0.23% 0.07% 0.77% 2Q21 3.73% 3.28% 1Q21 4.27% 0.09% 2.97% 0.67% 3Q21 3.66% 3.28% 1.11% 0.11% 1.25% 0.08% 0.15% 0.61% 4Q21 3.87% 3.51% 1.71% 0.08% 1Q20 0.12% 4.06% 0.58% 3.09% 4.04% 3.58% 0.71% 0.17% 0.77% 0.06% 0.74% 1.29% 2Q22 4.33% 3.58% 1Q22 2.18% 1.20% 3Q22 4.79% 3.69% 2Q20 0.79% 3.65% 3.86% 1.81% 4Q22 0.47% Earning Asset Yield Net Interest Margin Cost of Total Deposits Average Fed Funds Rate Interest-Bearing Liabilities Well Positioned with Slight Asset Sensitivity

16 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Strong and Growing Profitability FY2020 FY2021 $106.3 $22.1 FY2022 $16.8 $61.4 $128.4 Adjusted Net Income Available to Common ($ millions)(1) $0.33 $1.15 $1.74 $0.36 FY2020 FY2021 FY2022 $2.10 Adjusted EPS (Diluted)(1) FY2020 FY2021 12.3% 2.5% FY2022 2.9% 8.5% 14.8% Adjusted ROATCE(1) 0.40% 0.84% 1.15% 0.24% FY2020 FY2021 FY2022 1.39% Adjusted ROAA(1) Represents the impact of $31.3 million pre-tax reversal of credit losses due to the recovery from the settlement of a previously charged-off loan (1) Adjusted ratios are non-GAAP measures. Please see appendix for non-GAAP reconciliation.

17 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. In 2022, we realized growth in TBV per common share(1), as a result of good earnings and prudent balance sheet management, which more than offset negative AOCI marks, dividends, common stock repurchases and the acquisition of Deepstack Technologies Protection of Tangible Book Value $13.39 FY2020 $13.88 FY2021 $14.19 FY2022 Tangible Book Value / Share 4Q22: Completed $75 million stock buyback authorized in 1Q22 that reduced outstanding shares by 7% 4Q21: Closed $1.5 billion asset PMB acquisition in October 3Q22: Completed $24 million acquisition of Deepstack Technologies in September (1) Adjusted ratios are non-GAAP measures. Please see appendix for non-GAAP reconciliation.

18 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Solid Asset Quality (1) SFR average LTV is 57% as of 4Q22. (2) The NPL ratio related to BANC originated loans is 0.49% when PMB’s NPLs of $21.6 million and PMB acquired loans outstanding at December 31, 2021 of $905 million are excluded. • NPLs declined excluding SFR loans, which are well-secured with low average LTVs of 57%(1) Delinquencies ($ in millions) Non-performing Loans (NPLs) ($ in millions) Criticized and Classified Loans ($ in millions) ACL / Non-performing Loans (NPLs) ($ in millions) $19.1 $21.7 1.00% 4Q21 $30.6 0.82% 1Q22 $29.7 0.83% 2Q22 $21.1 0.79% 3Q22 $30.4 1.28% 4Q22 SFR Delinquencies PMBC Acquired Delinquencies Delinquencies (ex-SFR) Delinquencies /Total Loans $101 $60 4Q21 $98 1Q22 $125 2Q22 $111 3Q22 $119 4Q22 $245 $250 $211 $173 $183 Criticized and Classified Loans PMB Acquired Criticized and Classified Loans Classified Loans $21.6 $23.9 0.72% 4Q21 $44.2 0.73% 1Q22 $37.1 0.60% 2Q22 $34.7 0.59% 3Q22 $34.1 0.78% 4Q22 SFR NPLs PMBC Acquired NPLs NPLs (ex-SFR) NPLs/Total Loans-HFI 1.35% $98.2 4Q21 1.32% $98.6 1Q22 1.34% $99.7 2Q22 1.36% $98.8 3Q22 1.28% $91.3 4Q22 ACL / Total Loans ACL (2) $31.9 $30.4 $32.5 $36.4 $60.8 $7.1 $10.3 $7.3 $8.0 $21.1

19 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Robust Capital Base 4Q21 1Q22 2Q22 3Q22 4Q22 Common Equity Tier 1(1) 11.31% 11.40% 11.29% 11.43% 11.88% Tier 1 Risk-based Capital(1) 12.55% 11.40% 11.29% 11.43% 11.88% Leverage Ratio(1) 10.37% 9.72% 9.58% 9.52% 9.71% Tangible Equity / Tangible Assets(2) 10.38% 9.27% 9.03% 8.97% 9.23% Tangible Common Equity / Tangible Assets(2) 9.36% 9.27% 9.03% 8.97% 9.23% • 1Q22 included the Series E Preferred Stock Redemption of $98.7 million • 1Q22, 2Q22, 3Q22 and 4Q22 included $4.3 million, $38.9 million, $13.0 million and $18.9 million in common stock repurchases, respectively • 3Q22 included the impact from the Deepstack acquisition and 4Q21 included the impact from the PMB acquisition 4Q21 4Q22 11.31% 11.88% Common Equity Tier 1(1) 4Q21 4Q22 9.36% 9.23% Tangible Common Equity / Tangible Assets(2) BANC is Focused on Key Capital Ratios (1) 4Q22 capital ratios are preliminary. (2) Denotes a non-GAAP financial measure; see appendix non-GAAP reconciliations.

20 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. 2022 Strategic Goals We delivered on what we said we would do in our Q4 2021 Investor Presentation • Redeemed Series E preferred stock in 1Q22 for annualized savings of $6.9 million • Repurchased $75M in stock in 2022 • Acquired Deepstack with stock and cash • Shifted a portion of the securities portfolio from AFS to HTM to protect TBVPS • Repositioned a portion of the AFS securities portfolio for a $5.4 million after-tax loss on sales and ~3 year pay-back through reinvestment Fully Realize Synergies of PMB Acquisition Continue Generating Strong Loan Production Capitalize on Asset Sensitivity Accelerate Investment in Technology Continue Optimizing Use of Capital to Increase Earnings and Enhance Franchise Value • Achieved 40%+ cost saves • Compared to 2021: • 2022 adjusted efficiency ratio(1) declined from 62% to 56% • 2022 adjusted noninterest expense to average assets ratio(1) declined from 2.05% to 2.03% • Adjusted ROAA(1) increased to 115 bps for 4Q22 compared to 63 bps for 4Q21 • 2022 core commercial loans increased 13%(2) • Attracted new leaders for ABL, Education and Entertainment • Launched several internal tech initiatives, including the rollout of nCino in 4Q22 • Launched payments vertical including acquisition of Deepstack Technologies • Strategic investment in Finexio • 2022 NIM expanded 33 bps • 2022 average NIB deposits increased 9% to 39% • Margin expansion in first half of year brought earnings forward, and ended the year remaining slightly asset sensitive with strong loan yields and a high percentage of noninterest-bearing deposits (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation. (2) Core commercial loans include CRE, Multifamily, Construction and C&I.

21 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. 2023 Strategic Goals • Continued focus on noninterest-bearing deposits, credit quality, robust capital and tangible book value growth • Build highly-differentiated payment business that will drive fee income and commercial deposits • Continue momentum in media/entertainment, healthcare and selective bridge real estate where we have unique expertise • Options include, but are not limited to: balance sheet growth, investments in people and technology, stock repurchases, debt paydowns, and other targeted ways to enhance yield Protect The Balance Sheet Proactively Manage Asset- Liability Mix Target Opportunistic Growth in our Core Niches Scale Payments Business and Related Initiatives Allocate Capital to Drive Long Term Shareholder Returns • Balance asset sensitivity while also proactively taking advantage of opportunities to enhance earnings for the long term Well Positioned to Grow Franchise Value Regardless of Economic Environment

22 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Appendix

23 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Steady Increase in Pre-tax Pre-provision Profitability Adjusted Pre-tax Pre-provision (PTPP) Income(1) $16.0 $13.2 $12.2 $18.9 0.65% 0.83% 0.98% 1.25% 1.06% 1.35% 1.39% 1.55% 1.65% 1.59% 1.63% 4Q20 $20.6 1Q21 $22.0 1.13% 2Q21 $27.7 3Q21 $32.7 4Q21 $12.2 1Q22 $38.4 2Q22 $37.7 3Q22 $38.0 4Q221Q20 $16.0 2Q20 $18.9 3Q20 $24.5 $35.8 +16% +212% Adjusted PTPP Income Adjusted PTPP Income / Avg. Assets($ in millions) (1) Adjusted ratios are non-GAAP measures. Please see appendix for non-GAAP reconciliation.

24 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Non-GAAP Financial Information This presentation contains certain financial measures determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). These measures include tangible assets, tangible equity, tangible common equity, tangible equity to tangible assets, tangible common equity to tangible assets, tangible common equity per share, return on average tangible common equity, adjusted noninterest income, adjusted noninterest expense, adjusted noninterest expense to average total assets, pre-tax pre-provision (PTPP) income (loss), adjusted PTPP income (loss), PTPP income (loss) ROAA, adjusted PTPP income (loss) ROAA, efficiency ratio, adjusted efficiency ratio, adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share (EPS) and adjusted return on average assets (ROAA) constitute supplemental financial information determined by methods other than in accordance with GAAP. These non-GAAP measures are used by management in its analysis of the Company's performance. Tangible assets and tangible equity are calculated by subtracting goodwill and other intangible assets from total assets and total equity. Tangible common equity is calculated by subtracting preferred stock from tangible equity. Return on average tangible common equity is computed by dividing net income (loss) available to common stockholders, after adjustment for amortization of intangible assets, by average tangible common equity. Banking regulators also exclude goodwill and other intangible assets from stockholders' equity when assessing the capital adequacy of a financial institution. PTPP income is calculated by adding net interest income and noninterest income (total revenue) and subtracting noninterest expense. Adjusted PTPP income is calculated by adding adjusted total revenue and subtracting adjusted noninterest expense. PTPP income ROAA is computed by dividing annualized PTPP income by average assets. Adjusted PTPP income ROAA is computed by dividing annualized adjusted PTPP income by average assets. Efficiency ratio is computed by dividing noninterest expense by total revenue. Adjusted efficiency ratio is computed by dividing adjusted noninterest expense by adjusted total revenue. Adjusted net income (loss) is calculated by adjusting net income (loss) for tax-effected noninterest expense adjustments and the tax impact from the exercise of stock appreciation rights for the periods indicated. Adjusted net income is calculated by adjusting net income for tax-effected noninterest income and noninterest expense adjustments and the tax impact from the exercise of stock appreciation rights for the periods indicated. Adjusted ROAA is computed by dividing annualized adjusted net income by average assets. Adjusted net income (loss) available to common stockholders is computed by removing the impact of preferred stock redemptions from adjusted net income (loss). Adjusted diluted earnings per share is computed by dividing adjusted net income (loss) available to common stockholders by the weighted average diluted common shares outstanding. 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. Reconciliations of these measures to measures determined in accordance with GAAP are contained on slides 25-29 of this presentation.

25 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Non-GAAP Reconciliation (1) Non-GAAP measure. (2) Ratio presented on an annualized basis. (Dollars in thousands) 4Q22 3Q22 4Q21 FY2022 FY2021 FY2020 FY2019 Net interest income $ 80,217 $ 79,408 $ 73,039 $ 314,365 $ 253,778 $ 224,594 $ 248,163 Noninterest income (1,427) 5,681 5,605 17,350 19,376 18,518 12,116 Total revenue 78,790 85,089 78,644 331,715 273,154 243,112 260,279 Noninterest expense 48,203 50,962 58,872 194,373 183,678 199,033 196,472 Pre-tax pre-provision income(1) $ 30,587 $ 34,127 $ 19,772 $ 137,342 $ 89,476 $ 44,079 $ 63,807 Total revenue $ 78,790 $ 85,089 $ 78,644 $ 331,715 $ 273,154 $ 243,112 $ 260,279 Total noninterest income adjustments $ 7,708 - - 7,692 - (2,011) 4,852 Adjusted total revenue(1) $ 86,498 $ 85,089 $ 78,644 $ 339,407 $ 273,154 $ 241,101 $ 265,131 Noninterest expense $ 48,203 $ 50,962 $ 58,872 $ 194,373 $ 183,678 $ 199,033 $ 196,472 Total noninterest expense adjustments 261 (3,601) (12,891) (4,890) (13,613) (28,246) 3,450 Adjusted noninterest expense(1) 48,464 47,361 45,981 189,483 170,065 170,787 199,922 Adjusted pre-tax pre-provision income(1) $ 38,034 $ 37,728 $ 32,663 $ 149,924 $ 103,089 $ 70,314 $ 65,209 Average Assets $ 9,257,311 $ 9,408,740 $ 9,331,955 $ 9,350,054 $ 8,294,004 $ 7,689,016 $ 9,132,980 Pre-tax pre-provision ROAA(1),(2) 1.31% 1.44% 0.84% 1.47% 1.08% 0.57% 0.70% Adjusted pre-tax pre-provision ROAA(1),(2) 1.63% 1.59% 1.39% 1.60% 1.24% 0.91% 0.71% Efficiency Ratio(1) 61.18% 59.89% 74.86% 58.60% 67.24% 81.87% 75.49% Adjusted efficiency ratio(1),(2) 56.03% 55.66% 58.47% 55.83% 62.26% 70.84% 75.40%

26 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Non-GAAP Reconciliation (1) Non-GAAP measure. (2) Ratio presented on an annualized basis. (Dollars in thousands) 4Q22 3Q22 4Q21 FY2022 FY2021 FY2020 FY2019 Adjusted Noninterest Income Total noninterest income (1,427) 5,681 5,605 17,350 19,376 18,518 12,116 Net (gain) on securities available for sale 7,708 - - 7,692 - (2,011) 4,852 Adjusted noninterest income(1) $ 6,281 $ 5,681 $ 5,605 $ 25,042 $ 19,376 $ 16,507 $ 16,968 Adjusted Noninterest Expense Total noninterest expense $ 48,203 $ 50,962 $ 58,872 $ 194,373 183,674 199,033 196,472 Noninterest expense adjustments: Indemnified legal recoveries (fees) 869 (1,017) (642) (497) 2,073 673 9,407 Naming rights termination - - - - - (26,769) Extinguishment of debt - - - - - (2,515) Restructuring expense - - - - - - (4,263) Acquisition, integration and transaction costs - (2,080) (13,469) (2,080) (15,890) - - Noninterest expense adjustments before gain (loss) in alternative energy partnership investments 869 (3,097) (14,111) (2,577) (13,817) (28,611) 5,144 (Loss) gain in alternative energy partnership investments (608) (504) 1,220 (2,313) 204 365 (1,694) Total noninterest expense adjustments 261 (3,601) (12,891) (4,890) (13,613) (28,246) 3,450 Adjusted noninterest expense(1) $ 48,464 $ 47,361 $ 45,981 $ 189,483 $ 170,061 $ 170,787 $ 199,922 Average assets $9,257,311 $9,408,740 $9,331,955 $9,350,054 $8,294,004 $7,689,016 $9,132,980 Noninterest income to total revenue (1.81%) 6.68% 7.13% 5.23% 7.09% 7.62% 4.66% Adjusted noninterest income to adjusted total revenue(1) 7.26% 6.68% 7.13% 7.38% 7.09% 6.85% 6.40% Noninterest expense / Average assets(2) 2.07% 2.15% 2.50% 2.08% 2.21% 2.59% 2.15% Adjusted noninterest expense / Average assets(1)(2) 2.08% 2.00% 1.95% 2.03% 2.05% 2.22% 2.19%

27 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Non-GAAP Reconciliation (1) Non-GAAP measure. (Dollars in thousands) 4Q22 3Q22 4Q21 FY2020 FY2019 Tangible Common Equity to Tangible Assets Ratio Total assets $ 9,197,016 $ 9,368,578 $ 9,393,743 $ 7,877,334 $ 7,828,410 Less: goodwill (114,312) (114,312) (94,301) (37,144) (37,144) Less: other intangible assets (7,526) (8,081) (6,411) (2,633) (4,151) Tangible assets(1) $ 9,075,178 $ 9,246,185 $ 9,293,031 $ 7,837,557 $ 7,787,115 Total stockholders' equity $ 959,618 $ 951,990 $ 1,065,290 $ 897,207 $ 907,245 Less: preferred stock - - (94,956) (184,878) (189,825) Total common stockholders' equity $ 959,618 $ 951,990 $ 970,334 $ 712,329 $ 717,420 Total stockholders' equity $ 959,618 $ 951,990 $ 1,065,290 $ 897,207 $ 907,245 Less: goodwill (114,312) (114,312) (94,301) (37,144) (37,144) Less: other intangible assets (7,526) (8,081) (6,411) (2,633) (4,151) Tangible equity(1) 837,780 829,597 964,578 857,430 865,950 Less: preferred stock - - (94,956) (184,878) (189,825) Tangible common equity(1) $ 837,780 $ 829,597 $ 869,622 $ 672,552 $ 676,125 Total stockholders' equity to total assets 10.43% 10.16% 11.34% 11.39% 11.59% Tangible equity to tangible assets(1) 9.23% 8.97% 10.38% 10.94% 11.12% Tangible common equity to tangible assets(1) 9.23% 8.97% 9.36% 8.58% 8.68% Common shares outstanding 58,544,534 59,679,558 62,188,206 49,767,489 50,413,681 Class B non-voting non-convertible common shares outstanding 477,321 477,321 477,321 477,321 477,321 Total common shares outstanding 59,021,855 60,156,879 62,665,527 50,244,810 50,891,002 Book value per common share $ 16.26 $ 15.83 $ 15.48 $ 14.18 $ 14.10 Tangible common equity per common share(1) $ 14.19 $ 13.79 $ 13.88 $ 13.39 $ 13.29

28 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Non-GAAP Reconciliation (1) Non-GAAP measure. (2) Tax impact of adjustments shown at a statutory tax rate of 29.6%. (Dollars in thousands) 4Q22 3Q22 4Q21 FY2022 FY2021 FY2020 FY2019 Return on tangible common equity Average total stockholders' equity $ 989,414 $ 960,806 $ 1,035,782 $ 992,252 $ 896,988 $ 882,050 $ 948,446 Less: Average preferred stock - - (94,956) (18,731) (112,201) (186,209) (216,304) Average common stockholders' equity 989,414 960,806 940,826 973,521 784,787 695,841 732,142 Less: Average goodwill (114,312) (98,916) (86,911) (100,715) (49,688) (37,144) (37,144) Less: Average other intangible assets (7,869) (4,570) (4,994) (5,884) (2,924) (3,392) (5,246) Average tangible common equity(1) $ 867,233 $ 857,320 $ 848,921 $ 866,922 $ 732,175 $ 655,305 $ 689,752 Net income available to common stockholders $ 21,519 $ 24,196 $ 4,024 $ 115,772 $ 50,563 $ (1,103) $ 2,624 Add: Amortization of intangible assets 555 396 430 1,705 1,276 1,518 2,195 Less: Tax effect on amortization of intangible assets(2) (164) (117) (127) (504) (377) (449) (649) Net income available to common stockholders after the adjustments for intangible assets(1) $ 21,910 $ 24,475 $ 4,327 $ 116,973 $ 51,462 $ (34) $ 4,170 Return on average equity 8.63% 9.99% 2.20% 12.19% 6.95% 1.43% 2.51% Return on average tangible common equity(1) 10.02% 11.33% 2.02% 13.49% 7.03% (0.01%) 0.60%

29 © 2022 Banc of California, N.A., a wholly owned subsidiary of Banc of California, Inc. All rights reserved. Member FDIC. Non-GAAP Reconciliation (1) Net income and adjusted net income for the year ended December 31, 2022 includes a $31.3 million pre-tax reversal of credit losses due to the recovery from the settlement of a loan charged-off in the third quarter of 2019; there is no similar recovery in any of the other periods presented. Net income and adjusted net income for the year ended December 31, 2019 includes the impact of a $35.1 million pre-tax charge-off of a loan subsequently recovered in the first quarter of 2022. (2) Net income for the three months and year ended December 31, 2021 includes an $11.3 million pre-tax charge for the expected lifetime credit losses for non-purchased credit deteriorated loans acquired in the PMB Acquisition; there is no similar charge in any of the other periods presented. (3) Tax impact of adjustments shown at a statutory tax rate of 29.6%. (4) Non-GAAP measure. (5) Ratio presented on an annualized basis. (6) Represents adjusted net income available to common stockholders divided by average diluted common shares. (Dollars in thousands, except per share data) 4Q22 3Q22 4Q21 FY2022 FY2021 FY2020 FY2019 Adjusted net income Net income(1)(2) $ 21,519 $ 24,196 $ 5,751 $ 120,939 $ 62,346 $ 12,574 $ 23,759 Adjustments: Noninterest income adjustments 7,708 - - 5,418 - (1,416) 3,418 Noninterest expense adjustments (261) 3,601 12,891 3,444 9,574 19,894 (2,430) Tax impact of adjustments above(3) (2,202) (1,065) (3,811) (2,620) (2,830) (5,463) (292) Adjustments to net income 5,245 2,536 9,080 6,242 6,744 13,015 696 Adjusted net income(1)(4) $ 26,764 $ 26,732 $ 14,831 $ 129,801 $ 69,827 $ 31,052 $ 24,747 Average Assets $ 9,257,311 $ 9,408,740 $ 9,331,955 $ 9,350,054 $ 8,294,004 $ 7,689,016 $ 9,132,980 ROAA(5) 0.92% 1.02% 0.24% 1.29% 0.75% 0.16% 0.26% Adjusted ROAA(4)(5) 1.15% 1.13% 0.63% 1.39% 0.84% 0.40% 0.27% Adjusted net income available to common stockholders Net income available to common stockholders $ 21,519 $ 24,196 $ 4,024 $ 115,772 $ 50,563 $ (1,103) $ 2,624 Adjustments to net income 5,245 2,536 9,080 8,862 7,481 18,478 988 Adjustments for impact of preferred stock redemption - - - 3,747 3,347 (568) 5,093 Adjusted net income available to common stockholders(4) $ 26,764 $ 26,732 $ 13,104 $ 128,381 $ 61,391 $ 16,807 $ 8,705 Average diluted common shares 59,725,283 60,492,460 60,690,046 61,175,108 53,302,926 50,182,096 50,851,594 Diluted EPS $ 0.36 $ 0.40 $ 0.07 $ 1.89 $ 0.95 $ (0.02) $ 0.05 Adjusted diluted EPS(4)(6) $ 0.45 $ 0.44 $ 0.22 $ 2.10 $ 1.15 $ 0.33 $ 0.17 Adjusted return on average tangible common equity(4) 12.3% 12.5% 6.2% 14.8% 8.4% 2.6% 1.3%