today announced it will release 2025 third quarter financial results after market close on Wednesday, October 22, 2025. The Company will host a conference call to discuss its third quarter results the following day on Thursday, October 23, 2025 at 10:00 a.m. Pacific Time (PT). Interested parties are welcome to attend the conference call by dialing (888) 317-6003 and referencing event code 5396883. A link to the. LOS ANGELES--(BUSINESS WIRE)--Banc of California, Inc. (the "Company†) (NYSE: BANC) ...

And no one knows more about these regional banks than Anton Schutz. He is president and CIO of Menden Capital Advisors. Fair to say, Anton, banks are your fishing and banks are your life, right.That your family. >> Yes, those are the three things. Depends on the order sometimes. >> Yeah, we we'll invert the order.It's a business show, so we'll start with the the mid one. Uh let's start with Bank of California, BNC. Big change here at the top.CEO making a lot of changes. One reason you like this company. >> ...

Company Overview - Banc of California is a $35 billion commercial bank headquartered in Los Angeles, making it the third largest bank in California and the largest independent bank based in Los Angeles [2]. Business Structure - The bank operates through three main segments: a commercial and community bank focused on traditional relationship banking, targeting small and medium-sized businesses with 80 branches primarily in California, and some in Colorado and North Carolina [3].

Company Overview - Banc of California is a $35 billion commercial bank headquartered in Los Angeles, making it the third largest bank in California and the largest independent bank based in Los Angeles [2]. Business Structure - The bank operates through three main segments: a commercial and community bank focused on traditional relationship banking, targeting small and medium-sized businesses with 80 branches primarily in California, and some in Colorado and North Carolina [3].

Summary of PacWest Bancorp FY Conference Call (September 09, 2025) Company Overview - **Company**: PacWest Bancorp (NYSE:BANC) - **Headquarters**: Los Angeles, California - **Market Position**: Third largest bank headquartered in California, largest independent bank in Los Angeles - **Total Assets**: $35 billion [4] Business Segments - **Commercial and Community Banking**: Traditional banking targeting small and medium-sized businesses through 80 branches, primarily in California, Colorado, and North Carolina [4] - **Specialty Businesses**: Includes media and entertainment banking, SBA lending, venture banking, and HOA deposit services [5] - **Payment Solutions**: Treasury management, credit card issuance, and merchant acquiring [5] Recent Developments - **Acquisition**: Acquired Banc of California in November 2023, with integration completed in 2024 [5] - **Earnings Growth**: Achieved double-digit quarter-over-quarter earnings growth since the integration [6] Market Conditions and Growth Drivers - **Economic Outlook**: California's economy is robust, with the state being the fourth largest economy globally. Southern California is a significant contributor [11] - **Job Creation**: California continues to create more jobs than any other state, with substantial venture capital investment [11] - **Upcoming Events**: Major events like the World Cup, Super Bowl, and Olympics are expected to boost the economy [12] Loan Production and Growth - **Loan Growth**: Loan production has exceeded market growth, with a focus on niche markets with less competition [6][7] - **Specialty Lending**: Growth in lender finance, fund finance, and warehouse lending, with a conservative approach to pricing [18][19] - **Community Banking**: Starting to see growth in community banking after restructuring and leadership changes [20] Profitability and Margin Expansion - **Loan Pricing**: A significant portion of the loan portfolio is maturing at lower rates, expected to enhance profitability as new loans are issued at higher rates [14] - **Deposit Repricing**: The bank has been proactive in repricing deposits, achieving a beta of around 55% compared to the industry average of mid-30s [15] Capital Management and Share Buybacks - **Buyback Program**: $150 million remaining in the buyback program, with plans to be opportunistic [27][55] - **Capital Levels**: Current CET1 capital levels are above well-capitalized standards, with a target range of $10.5 million to $11.5 million [56] Credit Quality and Allowance Levels - **Credit Performance**: Credit quality remains stable, with a current allowance for credit losses (ACL) of $107 million [61] - **Loan Portfolio Composition**: 29% of the loan portfolio consists of low-risk, short-duration loans, contributing to a high coverage ratio [61] Technology and AI Integration - **AI Initiatives**: The bank is exploring AI applications across various functions, with a focus on maintaining fundamental banking skills among employees [43][45] Conclusion - **Future Outlook**: The bank is optimistic about continued growth in earnings and loan production, with a focus on maintaining strong credit quality and capital management [63]

Core Points - Steadfast LA, in collaboration with Banc of California, has initiated a Small Business Initiative to support local businesses [1] - A total of $125,000 in small business recovery grants has been distributed to three key businesses in Altadena [1] - The recipients of the grants include Webster's Community Pharmacy, Fair Oaks Burger, and Altadena Cookie Co., which will utilize the funds to recover from fire-related damages [1] Summary by Category Financial Support - The Small Business Initiative has allocated a total of $125,000 for recovery grants [1] - The grants are aimed at assisting small businesses in overcoming financial challenges due to fire-related incidents [1] Business Impact - Webster's Community Pharmacy is notable for its upcoming 100th anniversary, highlighting its long-standing service to the Altadena community [1] - Fair Oaks Burger and Altadena Cookie Co. are also significant local businesses benefiting from the recovery grants [1] Community Engagement - The initiative reflects a commitment to supporting cornerstone businesses that contribute to the local economy and community identity [1]

Group 1 - Banc of California (NYSE: BANC) has shown minimal movement in share price over the past three years, with a net return close to zero [1] - The investment group European Small Cap Ideas focuses on high-quality small-cap investment opportunities in Europe, emphasizing capital gains and dividend income [1] - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1]

PART I. FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The company's total assets grew to $34.25 billion, with net earnings increasing to $82.0 million for the six-month period [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets rose to $34.25 billion, driven by loan growth, while stockholders' equity slightly decreased Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$34,250,453** | **$33,542,864** | | Total Loans and Leases Held for Investment, net | $24,016,549 | $23,542,303 | | Total Investment Securities | $4,725,142 | $4,700,761 | | **Total Liabilities** | **$30,823,610** | **$30,042,915** | | Total Deposits | $27,528,433 | $27,191,909 | | Borrowings | $1,917,180 | $1,391,814 | | **Total Stockholders' Equity** | **$3,426,843** | **$3,499,949** | [Condensed Consolidated Statements of Earnings](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Q2 net earnings fell to $28.4 million due to higher credit loss provisions, though six-month earnings improved year-over-year Key Earnings Data (in thousands, except per share amounts) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $240,216 | $232,364 | $229,488 | | Provision for Credit Losses | $39,100 | $9,300 | $11,000 | | Noninterest Income | $32,633 | $33,650 | $29,792 | | Noninterest Expense | $185,869 | $183,653 | $203,643 | | **Net Earnings** | **$28,385** | **$53,568** | **$30,333** | | **Diluted EPS** | **$0.12** | **$0.26** | **$0.12** | Six-Month Earnings Comparison (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Interest Income | $472,580 | $458,590 | | Provision for Credit Losses | $48,400 | $21,000 | | **Net Earnings** | **$81,953** | **$61,185** | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash decreased by $148.7 million due to loan growth, partially offset by increased deposits and borrowings Six Months Ended June 30, 2025 Cash Flow Summary (in thousands) | Cash Flow Category | Amount | | :--- | :--- | | Net cash provided by operating activities | $77,836 | | Net cash used in investing activities | ($878,282) | | Net cash provided by financing activities | $651,786 | | **Net decrease in cash and cash equivalents** | **($148,660)** | - Significant financing activities included a net increase in interest-bearing deposits of **$615.3 million** and proceeds from borrowings of **$700.0 million**, which were offset by common stock repurchases of **$151.8 million** and repayments of borrowings of **$176.2 million**[30](index=30&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, segment information, and subsequent events like dividend declarations - The company operates as one reportable segment, **Commercial Banking**, with the Chief Executive Officer identified as the Chief Operating Decision Maker (CODM)[233](index=233&type=chunk)[234](index=234&type=chunk) - Subsequent to the quarter end, on August 8, 2025, the Board of Directors declared a quarterly cash dividend of **$0.10 per common share** and **$0.4845 per Depositary Share** for preferred stock[242](index=242&type=chunk)[243](index=243&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=72&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses revenue growth, a strategic loan sale, stock repurchases, and stable capital ratios - In Q2 2025, the company initiated a strategic loan sale process, reclassifying **$506.7 million** of loans to held for sale, resulting in charge-offs of **$36.9 million** and an incremental provision expense of **$26.3 million**[253](index=253&type=chunk)[254](index=254&type=chunk) - The company repurchased **11.5 million shares for $150.0 million** in the first half of 2025 under its stock repurchase program, with **$150.0 million** remaining under the authorization as of June 30, 2025[251](index=251&type=chunk)[277](index=277&type=chunk) - Q2 2025 results included a one-time non-cash income tax expense of **$9.8 million** due to the revaluation of deferred tax assets related to recent California state tax changes[275](index=275&type=chunk)[277](index=277&type=chunk) [Results of Operations](index=80&type=section&id=Results%20of%20Operations) Q2 results show increased net interest income, a higher provision for credit losses, and an elevated effective tax rate - Net interest income increased by **$7.9 million** sequentially in Q2 2025, driven by higher loan balances and yields, with the net interest margin expanding by **2 basis points to 3.10%**[286](index=286&type=chunk)[287](index=287&type=chunk) - The provision for credit losses was **$39.1 million** for Q2 2025, a sharp increase from **$9.3 million** in Q1 2025, including **$26.3 million** related to loans transferred to held for sale[296](index=296&type=chunk)[297](index=297&type=chunk) - The effective tax rate for Q2 2025 was **40.7%**, significantly higher than Q1's **26.7%**, due to a **$9.8 million** non-cash expense from the revaluation of deferred tax assets[309](index=309&type=chunk)[310](index=310&type=chunk) [Balance Sheet Analysis](index=89&type=section&id=Balance%20Sheet%20Analysis) The balance sheet reflects loan and deposit growth, improved credit quality, and a strong liquidity position - Total loans and leases held for investment increased by **$464.2 million to $24.2 billion** at June 30, 2025, from year-end 2024[321](index=321&type=chunk) - Credit quality metrics improved, with nonaccrual loans decreasing to **$167.5 million (0.69% of loans)** and special mention loans decreasing by **$435.7 million** from year-end 2024[343](index=343&type=chunk)[349](index=349&type=chunk) - Total deposits grew by **$336.5 million to $27.5 billion** since year-end 2024, with noninterest-bearing deposits representing **27% of total deposits**[350](index=350&type=chunk) - The company's available liquidity of **$14.8 billion** provided a coverage ratio of **196%** for uninsured and uncollateralized deposits as of June 30, 2025[351](index=351&type=chunk) [Regulatory Matters and Capital](index=105&type=section&id=Regulatory%20Matters%20and%20Capital) The company remains 'well capitalized' with strong capital ratios despite a slight decrease due to stock repurchases Consolidated Capital Ratios | Ratio | June 30, 2025 | December 31, 2024 | Minimum for Well Capitalized | | :--- | :--- | :--- | :--- | | CET1 Capital Ratio | 9.95% | 10.55% | 6.50% (Bank) | | Tier 1 Capital Ratio | 12.34% | 12.97% | 8.00% (Bank) | | Total Capital Ratio | 16.37% | 17.05% | 10.00% (Bank) | | Tier 1 Leverage Ratio | 9.74% | 10.15% | 5.00% (Bank) | - The decrease in capital ratios during the first six months of 2025 was mainly due to **stock repurchases**, lower net earnings, and growth in risk-weighted assets[360](index=360&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=110&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages a near 'neutral' interest rate risk profile using NII and EVE models and mitigates risks with derivatives Interest Rate Sensitivity Analysis as of June 30, 2025 | Change in Interest Rates | EVE Change (%) | NII Change (%) | | :--- | :--- | :--- | | +200 bps | (5.7)% | 2.0% | | +100 bps | (2.7)% | 1.1% | | 0 bps | -- | -- | | -100 bps | 3.1% | (0.7)% | | -200 bps | 4.2% | (1.8)% | - The company's interest rate risk profile was considered near **'neutral'** as of June 30, 2025[400](index=400&type=chunk) - When considering rate-sensitive noninterest expenses, the company's overall Earnings-at-Risk profile is considered **'liability sensitive'**, a risk mitigated by entering into **$1.0 billion** notional of interest rate collars[403](index=403&type=chunk)[404](index=404&type=chunk) [Item 4. Controls and Procedures](index=114&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed the effectiveness of disclosure controls and procedures with no material changes in internal controls - Management concluded that disclosure controls and procedures were **effective** as of the end of the period[406](index=406&type=chunk) - **No changes** in internal control over financial reporting occurred during the second quarter of 2025 that materially affected, or are reasonably likely to materially affect, internal controls[407](index=407&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=114&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing legal actions are not expected to have a material adverse effect on the company's financial condition - The company is involved in various legal actions incidental to its business, but management does not expect them to have a **material adverse effect** on its financial condition[409](index=409&type=chunk)[410](index=410&type=chunk) [Item 1A. Risk Factors](index=114&type=section&id=Item%201A.%20Risk%20Factors) No material changes have been identified for the risk factors previously disclosed in the Annual Report on Form 10-K - **No material changes** to the risk factors disclosed in the company's Form 10-K have occurred[411](index=411&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=115&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 8.9 million shares in Q2 2025 under an expanded $300 million stock repurchase program Common Stock Repurchases for Q2 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Purchased Under Program | | :--- | :--- | :--- | :--- | | April 2025 | 8,811,011 | $12.65 | 8,809,814 | | May 2025 | 48,759 | $13.77 | 0 | | June 2025 | 119 | $13.97 | 0 | | **Total Q2** | **8,859,889** | **$12.66** | **8,809,814** | - The stock repurchase program was increased from **$150.0 million to $300.0 million** on April 23, 2025, with approximately **$150.0 million** remaining available for repurchase[412](index=412&type=chunk)[413](index=413&type=chunk)

Financial Data and Key Metrics Changes - The company reported net income of $18.4 million or $0.12 per share, with adjusted net income of $48.4 million or $0.31 per share, reflecting a strong performance in the second quarter [12][13] - Net interest income increased by 3.4% from the prior quarter to $240 million, driven by strong loan growth and higher loan yields [14] - The net interest margin expanded to 3.1%, supported by a three basis point increase in average loan yields to 5.93% [14][15] Business Line Data and Key Metrics Changes - Total annualized loan growth reached 9%, with significant contributions from lender finance, fund finance, and purchased single-family residential loans [5][14] - Core held for sale loans increased by 12% annualized, while construction loans declined due to payoffs and completed projects [7][8] - Non-interest income totaled $32.6 million, down 3% from the prior quarter, primarily due to fluctuations in CRA-related equity investments [18] Market Data and Key Metrics Changes - The company experienced strong production levels in loan origination, achieving the highest level of originations since the merger at $1.2 billion [7] - Average core deposits increased by 5% annualized, although the average balance per account faced pressure due to seasonal and macroeconomic factors [16][19] - The multifamily portfolio, representing 26% of the loan portfolio, has significant repricing opportunities with $3.2 billion maturing over the next two and a half years [17] Company Strategy and Development Direction - The company is focused on optimizing its balance sheet through strategic sales of loans, aiming for high-quality, consistent, and sustainable earnings growth [5][10] - There is a strong emphasis on maintaining disciplined pricing and underwriting standards while proactively managing credit risk [9][11] - The company aims to capitalize on growth opportunities in California, leveraging its position as a leading business bank in the region [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the market and strong demand for products and services, despite uncertainties in the broader macroeconomic environment [11] - The outlook for the second half of 2025 includes expectations for continued growth in core profitability and mid-single-digit increases in net interest income [21][22] - Management highlighted the importance of maintaining a strong credit quality profile while pursuing growth opportunities [20][21] Other Important Information - The company repurchased $150 million of common stock, representing about 6.8% of shares, with $150 million remaining in the buyback program [6] - A one-time non-cash income tax expense of $9.8 million was recorded, primarily related to the revaluation of deferred tax assets [13] - The company anticipates $243 million of loan sales to close in the third quarter, with a focus on maintaining a healthy capital position [13][19] Q&A Session Summary Question: Loan sales and balance sheet impact - Management clarified that loan sales do not necessitate a one-to-one relationship with unwinding wholesale funding, as they have been growing rapidly and providing leverage on sold loans [31][34] Question: Expense guidance and ECR - Management indicated that while expenses came in below guidance, they expect to settle at the lower end of the range due to investments in compensation and infrastructure [38][39] Question: Asset quality and provisioning expectations - Management expects normalized provisioning to be around $10 to $12 million per quarter, depending on the type of loans being grown [109][110] Question: M&A considerations - Management emphasized the focus on organic growth and maintaining independence, while remaining open to opportunities if market conditions normalize [112][114]

Financial Performance - Adjusted EPS for 2Q25 was $031, a 19% increase QoQ and a 9% annualized total loan growth[6] - The Net Interest Margin (NIM) was 310%, up 2 bps QoQ and 30 bps YoY[6,9] - Adjusted Return on Average Tangible Common Equity (ROATCE) was 834%[6,11] - Adjusted Pre-Tax Pre-Provision (PTPP) income was $870 million, up 56% QoQ and 563% YoY[6,11] Loan Portfolio and Credit Quality - Total loans increased by 9% annualized, with core loans up approximately 12%[6] - Strategic sales of approximately $507 million in CRE loans led to improved credit quality metrics[6,43] - Non-Performing Loans (NPL), Classified and Special Mention ratios decreased by 19 bps, 46 bps, and 115 bps, respectively[6] - The Allowance for Credit Losses (ACL) ratio was 107%[6] Capital and Shareholder Value - Tangible Book Value Per Share (TBVPS) was $1646, a 2% increase QoQ[6] - The CET 1 capital ratio was 992%[6] - The company repurchased $150 million of common shares YTD, representing 68% of shares, at a VWAP of $1305[6] Deposits - Core deposits remained stable QoQ[6] - Noninterest-bearing deposits accounted for 270% of total deposits[20] Outlook - The company is targeting a Net Interest Margin (NIM) of 320%-330% by 4Q25[76] - The company anticipates Noninterest Expense (NIE) to average $190 million-$195 million per quarter[76]