Banc of California, Inc. (NYSE:BANC) Q1 2020 Earnings Conference Call April 29, 2020 1:00 PM ET Company Participants Jared Wolff - President and Chief Executive Officer Lynn Hopkins - Chief Financial Officer Mike Smith - Chief Accounting Officer Bob Dyck - Chief Credit Officer Conference Call Participants Matthew Clark - Piper Sandler Jackie Bohlen - KBW Timur Braziler - Wells Fargo David Feaster - Raymond James Gary Tenner - D.A. Davidson Tim Coffey - Janney Steve Moss - B. Riley FBR Operator Hello and wel ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-35522 BANC OF CALIFORNIA, INC. (Exact name of registrant as specified in its charter) Maryland 04-3639825 (State or ...

Banc of California, Inc. (NYSE:BANC) Q4 2019 Earnings Conference Call January 23, 2019 1:00 PM ET Company Participants Jared Wolff - President, CEO & Director Lynn Hopkins - CFO & EVP Conference Call Participants Matthew Clark - Piper Sandler & Co. Timur Braziler - Wells Fargo Securities Luke Wooten - KBW Gary Tenner - D.A. Davidson & Co. Stephen Moss - B. Riley FBR, Inc. Operator Hello, and welcome to Banc of California's fourth quarter earnings conference call. [Operator Instructions]. Today's call is bei ...

Table of Contents (Mark One) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted ...

Financial Data and Key Metrics Changes - The company reported a net loss to common stockholders of $22.7 million, translating to a diluted loss per common share of $0.45, primarily due to a $35 million charge-off related to a fraudulent scheme [4][18] - Total assets decreased by $735 million to $8.6 billion, driven by a $574 million multi-family securitization and the sale of $371 million in mortgage-backed securities [12][13] - The net interest margin remained flat at 2.86%, with net interest income decreasing by $5.9 million to $58.9 million [20][21] Business Line Data and Key Metrics Changes - Non-interest-bearing deposits increased by 11% from the prior quarter to over $1.1 billion, now comprising almost 20% of the total deposit portfolio [8] - The loan portfolio mix of single-family residential (SFR) and multi-family loans decreased to 52%, down from 59% at the end of the prior year [15] - Held-for-investment loans decreased to $6.4 billion, primarily due to a $220 million net reduction in SFR and multi-family balances [14] Market Data and Key Metrics Changes - Brokered deposits now make up less than 2% of total deposit balances, with a significant reduction in higher-cost brokered CDs, which decreased by 86% to $54 million [8][17] - The average cost of deposits decreased by 14 basis points to 1.48% [17] Company Strategy and Development Direction - The company is focused on reducing the cost of deposits, lowering quarterly operating expenses, and eliminating non-core assets to create a foundation for growth in 2020 [7][29] - The strategic initiatives include enhancing client relationships and improving technology to streamline operations and client onboarding [26][27] - The company aims to increase the proportion of commercial real estate (CRE) loans to 70%-75% of the total commercial loan portfolio, while C&I loans will comprise the remaining 25%-30% [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ability to generate loans above the current portfolio yield, indicating a focus on relationship-based lending [38] - The company is actively managing its deposit costs and expects to see continued reductions in the future [39][84] - Management acknowledged the challenges posed by the competitive rate environment but remains committed to disciplined growth [48][50] Other Important Information - The company has initiated a review of all loan relationships of $5 million and above not secured by real estate, with no additional instances of fraud identified to date [6][76] - The Common Equity Tier 1 capital ratio improved to 10.3%, and Tier 1 risk-based capital totaled 14.31% [23] Q&A Session Summary Question: Outlook on the size of the balance sheet - Management expects to maintain a balance around $8.6 billion, with loan generation replacing payoffs [34] Question: NIM outlook - Management anticipates potential expansion of the net interest margin, aiming to exceed 3% [35][38] Question: Details on Shared National Credit (SNC) - The SNC in question is a $14.5 million relationship in the apparel industry, currently paying but reclassified to non-accrual [41] Question: Expense outlook - Management is confident in maintaining expenses below $50 million, with ongoing initiatives expected to yield savings [58][59] Question: CD maturities and retention rates - Approximately $600 million of CDs maturing in the fourth quarter, with retention rates expected to be lower due to higher rates [64][66]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-35522 | --- | |------------------------------------------------------------------------------------------------ ...