Banc of California (BANC) 8-K Banc of California Reports First Quarter Results

Exhibit 99.1

Banc of California Reports First Quarter Results

IRVINE, Calif., (April 29, 2015) –Banc of California, Inc. (NYSE: BANC) today reported net income of $12.6 million and net income available to common shareholders of $11.7 million, or $0.29 per diluted common share for the quarter ended March 31, 2015. This compares to net income available to common shareholders of $9.2 million, or $0.25 per diluted common share, for the quarter ended December 31, 2014, and a net loss to common shareholders of $0.2 million, or $(0.01) per diluted common shares, for the year ago quarter ended March 31, 2014.

“We are proud of our strong first quarter results which were marked by record net income for the Company,” said Steven Sugarman, President and Chief Executive Officer. “This quarter’s strength was supported by a full quarter of benefit from the Popular transaction. We are also particularly proud of obtaining an investment grade credit rating for the Company and the Bank subsidiary, which highlights the strength of the Company’s balance sheet and validates our ability to serve the diverse needs of clients across the state as California’s Bank.”

The Company’s consolidated assets totaled $6.1 billion at March 31, 2015, an increase of $0.1 billion compared to the prior quarter, and an increase of $2.1 billion compared to a year ago.

Return on average assets for the first quarter was 0.9%, and return on average tangible common equity was 13.5% for the first quarter.

Total loans and leases, representing both loans held for investment and held for sale, of $5.2 billion at March 31, 2015 increased by $38 million compared to the prior quarter, and have increased by $1.8 billion compared to the year ago quarter. First quarter origination volumes remained strong and totaled $1.5 billion. Held for investment loan balances declined slightly from the prior quarter, as net loan growth was muted by pay downs and payoffs as well as the sale of $29 million of multifamily loans during the quarter.

Total deposits of $4.9 billion at March 31, 2015 increased by $190 million, or 4%, compared to the prior quarter, and have increased by $1.8 billion, or 56%, compared to the year ago quarter. Noninterest-bearing deposits increased by $87 million, or 13%, compared to the prior quarter.

Total revenue of $98.0 million for the first quarter increased by $10.8 million, or 12%, compared with the prior quarter, and increased by $37.5 million, or 62%, compared to the year ago quarter.

First quarter net interest income of $52.0 million increased by $5.7 million, or 12%, from the prior quarter, and increased by $16.8 million, or 48%, compared to the year ago quarter.

The consolidated net interest margin for the first quarter was 3.69%, an increase of 4 basis points from 3.65% reported in the prior quarter. The net interest margin for Banc of California, N.A. was 3.84% for the first quarter, an increase of 2 basis points from prior quarter. Cost of total deposits for the first quarter was 0.54%, down 6 basis points, or 10%, from the prior quarter, and was the primary driver of margin expansion during the quarter as overall loan yields remained relatively stable at 4.59%.

Noninterest income for the first quarter totaled $46.0 million, compared to $40.9 million for the prior quarter and $25.3 million for the year ago quarter. Mortgage banking income totaled $37.9 million for the first quarter, compared to $25.0 million for the prior quarter and $17.3 million for the year ago quarter. Both origination volumes and gain on sale margins increased in the first quarter, contributing to higher mortgage banking income.

18500 Von Karman Ave. ● Suite 1100 ● Irvine, CA 92612 ● (949) 236-5250 ● www.bancofcal.com

Total noninterest expense for the first quarter totaled $75.9 million, a decrease of $2.3 million compared to the prior quarter. The prior quarter included approximately $5.9 million of non-recurring costs, primarily related to the Popular acquisition. Noninterest expense for the first quarter includes a full quarter of ongoing expenses related to operation of the acquired Popular branch locations. Higher mortgage banking origination volumes during the first quarter contributed to the sequential quarter increase in expenses excluding the $5.9 million of one-time costs in the prior quarter.

The Company’s allowance for loan and lease losses (ALLL) ended the quarter at $29.3 million, and equaled 1.35% of originated loans, and represented a coverage ratio of 69% of nonperforming loans at March 31, 2015. There was no provision for loan losses for the first quarter, compared to $4.2 million in the prior quarter. The ratio of delinquent non-PCI loans to total non-PCI loans equaled 1.66% for the first quarter, up from 1.55% at the prior quarter, and down from 2.21% a year ago. The ratio of nonperforming assets to total assets stood at 0.71% for the first quarter. Net charge offs for the first quarter were $0.1 million, compared to a net recovery of less than $0.1 million during the prior quarter.

The Company remains well-capitalized with a Tier 1 Risk-Based Capital Ratio of 10.9%, a Tier 1 Leverage Ratio of 8.0%, and a Tangible Equity to Tangible Assets Ratio (TE/TA) of 7.6%, as of March 31, 2015. On a pro-forma basis, as a result of the debt and preferred offerings in early April, the Company had a Tier 1 Risk-Based Capital Ratio of 13.2%, a Tier 1 Leverage Ratio of 9.9%, and a Tangible Equity to Tangible Assets Ratio (TE/TA) of 9.0% based on applying the net proceeds raised to the March 31, 2015 consolidated balance sheet.

The Company will host a conference call to discuss its first quarter financial results at 8:00 a.m. Pacific Time (PT) on Thursday, April 30, 2015. Interested parties are welcome to attend the conference call by dialing 888-317-6003, and referencing event code 5076389. A live audio webcast will also be available and the webcast link will be posted on the Company’s website under the Investors section. The slide presentation for the call will also be available on the Company’s website prior to the call.

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) has total assets over $6 billion and is the largest bank holding company headquartered in Orange County, CA. The Company’s principal subsidiary, Banc of California, N.A., provides banking services to California’s diverse private businesses, entrepreneurs and homeowners. Banc of California operates over 100 offices, including 38 full-service branch locations in California.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by Banc of California, Inc. with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements and Banc of California, Inc. undertakes no obligation to update any such statements to reflect circumstances or events that occur after the date on which the forward-looking statement is made.

Source: Banc of California, Inc.

INVESTOR RELATIONS INQUIRIES:	MEDIA INQUIRIES:
Banc of California, Inc.	Vectis Strategies
Timothy Sedabres, (855) 361-2262	David Herbst, (213) 973-4113 x101

- 2 -

Banc of California, Inc

Consolidated Statements of Financial Condition

(Dollars in thousands)

(Unaudited)

	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
ASSETS
Cash and cash equivalents	$	265,402		$	231,199		$	184,985		$	258,051		$	333,639
Time deposits in financial institutions		1,900			1,900			1,900			2,145			1,745
Securities available for sale		393,586			345,695			310,385			233,013			107,525
Loans held for sale		1,240,942			1,187,090			1,127,339			1,095,741			1,000,394
Loans and leases receivable		3,933,715			3,949,122			2,712,068			2,602,213			2,396,995
Allowance for loan and lease losses		(29,345	)		(29,480	)		(25,283	)		(22,627	)		(20,003	)
Federal Home Loan Bank and other bank stock		39,844			42,241			35,432			34,392			26,801
Servicing rights, net		21,829			19,566			11,745			10,191			18,880
Other real estate owned, net		498			423			605			605			150
Premises and equipment, net		78,285			78,685			67,323			67,457			67,278
Goodwill		31,591			31,591			31,591			32,150			32,868
Other intangible assets, net		23,708			25,252			10,829			10,959			11,213
Deferred income tax(1)		14,157			16,373			8,663			2,546			—
Income tax receivable		—			—			—			—			2,769
Bank-owned life insurance investment		19,154			19,095			19,038			18,984			18,928
Other assets (1)		62,089			52,545			41,206			40,511			31,283
Total assets	$	6,097,355		$	5,971,297		$	4,537,826		$	4,386,331		$	4,030,465
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-bearing deposits	$	749,129		$	662,295		$	457,743		$	408,404		$	430,925
Interest-bearing deposits		4,112,863			4,009,536			3,173,967			2,938,951			2,678,221
Total deposits		4,861,992			4,671,831			3,631,710			3,347,355			3,109,146
Advances from Federal Home Loan Bank		545,000			633,000			305,000			450,000			395,000
Other borrowings		15,000			—			—			—			70,000
Notes payable, net		92,668			93,569			95,549			96,481			82,416
Reserve for loss reimbursements on sold loans		8,432			8,303			7,045			6,174			5,866
Income taxes payable		4,488			56			2,158			31			—
Accrued expenses and other liabilities		55,615			61,223			49,653			47,163			42,880
Total liabilities		5,583,195			5,467,982			4,091,115			3,947,204			3,705,308
Commitments and contingent liabilities
Preferred stock, Series A, non-cumulative perpetual preferred stock		31,934			31,934			31,934			31,934			31,934
Preferred stock, Series B, non-cumulative perpetual preferred stock		10,000			10,000			10,000			10,000			10,000
Preferred stock, Series C, 8.00% non-cumulative perpetual preferred stock		37,943			37,943			37,943			37,943			37,943
Common stock		367			358			297			287			211
Common stock, class B non-voting non-convertible		—			6			6			6			6
Additional paid-in capital		424,636			422,910			371,738			369,530			258,861
Retained earnings(1)		36,880			29,589			24,692			18,588			14,229
Treasury stock		(29,798	)		(29,798	)		(29,798	)		(29,652	)		(27,726	)
Accumulated other comprehensive (loss)/income, net		2,198			373			(101	)		491			(301	)
Total stockholders’ equity		514,160			503,315			446,711			439,127			325,157
Total liabilities and stockholders’ equity	$	6,097,355		$	5,971,297		$	4,537,826		$	4,386,331		$	4,030,465

(1) Amounts for 2014 periods have been updated to reflect the first quarter 2015 adoption of ASU 2014-1 related to investment in low income housing tax credit.

1

Banc of California, Inc

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended
	March 31,		December 31,			September 30,		June 30,		March 31,
	2015		2014			2014		2014		2014
Interest and dividend income
Loans, including fees	$	58,155	$	52,599		$	44,555	$	42,077	$	41,530
Securities		1,927		1,781			1,460		993		924
Dividends and other interest-earning assets		698		700			634		564		322
Total interest and dividend income		60,780		55,080			46,649		43,634		42,776
Interest expense
Deposits		6,361		6,440			6,165		6,071		5,735
Federal Home Loan Bank advances		353		210			118		99		100
Notes payable and other interest-bearing liabilities		2,069		2,099			2,180		1,889		1,756
Total interest expense		8,783		8,749			8,463		8,059		7,591
Net interest income		51,997		46,331			38,186		35,575		35,185
Provision for loan and lease losses		—		4,159			2,780		2,108		1,929
Net interest income after provision for loan and lease losses		51,997		42,172			35,406		33,467		33,256
Noninterest income
Customer service fees		910		651			230		356		253
Net gain on sale of loans		4,472		3,927			10,260		3,038		2,603
Mortgage banking income		37,933		25,030			26,943		26,133		17,324
Advisory service fees		1,197		6,722			3,264		1,808		1,110
Loan brokerage income		1,141		2,314			2,033		2,416		1,911
All other income		327		2,245			1,368		1,621		2,077
Total noninterest income		45,980		40,889			44,098		35,372		25,278
Noninterest expense
Salaries and employee benefits		49,771		47,974			41,094		39,130		34,681
Occupancy and equipment		9,771		9,512			7,969		7,425		8,537
Professional fees		3,435		7,096			4,758		3,528		3,865
Data processing		1,835		1,884			1,286		1,270		791
Amortization of intangible assets		1,544		1,306			890		944		939
All other expenses (1)		9,523		10,448			11,357		8,007		8,781
Total noninterest expense		75,879		78,220			67,354		60,304		57,594
Income before income taxes		22,098		4,841			12,150		8,535		940
Income tax (benefit) expense(1)		9,524		(5,269	)		903		436		191
Net income		12,574		10,110			11,247		8,099		749
Preferred stock dividends		910		910			910		910		910
Net income (loss) available to common stockholders	$	11,664	$	9,200		$	10,337	$	7,189	$	(161	)
Basic earnings (loss) per total common share	$	0.30	$	0.25		$	0.31	$	0.27	$	(0.01	)
Diluted earnings (loss) per total common share	$	0.29	$	0.25		$	0.31	$	0.27	$	(0.01	)

(1) Amounts for 2014 periods have been updated to reflect the first quarter 2015 adoption of ASU 2014-1 related to investment in low income housing tax credit.

2

Banc of California, Inc

Selected Financial Data

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2015			2014			2014			2014			2014
Average balances:
Total assets	$	5,931,426		$	5,223,463		$	4,391,523		$	4,034,447		$	3,728,170
Total gross loans and leases		5,139,399			4,534,428			3,829,204			3,553,693			3,289,689
Securities available for sale		354,475			310,454			257,067			168,230			163,007
Total interest earning assets		5,713,766			5,033,973			4,228,555			3,858,772			3,568,092
Total interest-bearing deposits		4,085,673			3,699,464			3,070,130			2,855,650			2,592,884
Total borrowings		583,979			406,531			378,671			319,774			350,631
Interest bearing liabilities		4,669,652			4,105,995			3,448,801			3,175,424			2,943,515
Total stockholders’ equity		517,335			487,578			449,392			385,098			329,617
Profitability and other ratios:
Return on average assets (1)		0.86	%		0.77	%		1.02	%		0.81	%		0.08	%
Return on average equity(1)		9.86	%		8.23	%		9.93	%		8.44	%		0.92	%
Dividend payout ratio(2)		40.00	%		48.00	%		38.71	%		44.44	%		—
Net interest spread		3.55	%		3.49	%		3.41	%		3.52	%		3.81	%
Net interest margin (1)		3.69	%		3.65	%		3.58	%		3.70	%		4.00	%
Noninterest income to total revenue(3)		46.93	%		46.88	%		53.59	%		49.86	%		41.81	%
Noninterest income to average total assets (1)		3.14	%		3.11	%		3.98	%		3.52	%		2.75	%
Noninterest expense to average total assets (1)		5.19	%		5.94	%		6.08	%		6.00	%		6.27	%
Efficiency ratio (4)		77.45	%		89.68	%		81.86	%		85.00	%		95.25	%
Average held for investment loans and leases to average deposits		81.72	%		79.08	%		75.39	%		74.60	%		80.27	%
Average securities available for sale to average total assets		5.98	%		5.94	%		5.85	%		4.17	%		4.37	%
Average stockholders’ equity to average total assets		8.72	%		9.33	%		10.23	%		9.55	%		8.84	%
Allowance for loan and lease losses (ALLL):
Balance at beginning of period	$	29,480		$	25,283		$	22,627		$	20,003		$	18,805
Loans and leases charged off		(357	)		(25	)		(312	)		(383	)		(203	)
Recoveries of loans and leases previously charged off		222			63			96			641			435
Transfer of loans from (to) held-for-sale		—			—			92			258			(963	)
Provision for loan and lease losses		—			4,159			2,780			2,108			1,929
Balance at end of period	$	29,345		$	29,480		$	25,283		$	22,627		$	20,003
Reserve for loss on repurchased loans
Balance at beginning of period	$	8,303		$	7,045		$	6,174		$	5,866		$	5,427
Provision for loan repurchases		1,328			1,149			1,556			968			571
Payment made for loss reimbursement on sold loans		(1,199	)		109			(685	)		(660	)		(132	)
Balance at end of period	$	8,432		$	8,303		$	7,045		$	6,174		$	5,866

(1) Ratios are presented on an annualized basis

(2) Dividends declared per common share divided by basic earnings per share. Not applicable for the three months ended March 31, 2014, due to the net loss attributable to stockholders.

(3) Total revenue is equal to the sum of net interest income before provision and noninterest income.

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

3

Banc of California, Inc

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

	March 31,			December 31,			September 30,			June 30,			March 31,
	2015			2014			2014			2014			2014
Asset quality information and ratios:
30 to 89 days delinquent, excluding PCI loans	$	40,641		$	40,694		$	35,531		$	44,894		$	29,726
90+ days delinquent, excluding PCI loans		20,538			16,835			15,672			16,925			16,419
Total delinquent loans, excluding PCI loans		61,179			57,529			51,203			61,819			46,145
PCI loans, 30 to 89 days delinquent		16,375			17,641			18,743			25,109			19,898
PCI loans, 90+ days delinquent		6,986			5,761			4,017			12,398			12,110
Total delinquent PCI loans		23,361			23,402			22,760			37,507			32,008
Total delinquent loans	$	84,540		$	80,931		$	73,963		$	99,326		$	78,153
Total delinquent non-PCI loans to total non-PCI loans		1.66	%		1.55	%		2.08	%		2.69	%		2.21	%
Total delinquent loans to gross loans		2.15	%		2.05	%		2.73	%		3.82	%		3.26	%
Non-performing loans, excluding PCI loans	$	42,754		$	38,381		$	38,333		$	41,611		$	32,440
90+ days delinquent and still accruing loans, excluding PCI loans		—			—			—			—			—
Other real estate owned		498			423			605			605			150
Non-performing assets	$	43,252		$	38,804		$	38,938		$	42,216		$	32,590
ALLL to non-performing loans		68.64	%		76.81	%		65.96	%		54.38	%		61.66	%
Non-performing loans to gross loans		1.09	%		0.97	%		1.41	%		1.60	%		1.35	%
Non-performing assets to total assets		0.71	%		0.65	%		0.86	%		0.96	%		0.81	%

4

Banc of California, Inc

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

	March 31,			December 31,			September 30,			June 30,			March 31,
	2015			2014			2014			2014			2014
Loan and lease breakdown by ALLL evaluation type:
Originated loans and leases
Individually evaluated for impairment	$	29,301		$	29,287		$	29,030		$	29,763		$	13,504
Collectively evaluated for impairment		1,947,211			1,892,240			1,668,004			1,447,077			1,210,993
Acquired loans through business acquisitions - non-impaired
Individually evaluated for impairment		2,818			4,191			8,004			6,173			1,759
Collectively evaluated for impairment		1,358,184			1,411,927			377,554			409,745			438,816
Seasoned SFR mortgage loan pools - non-impaired		354,402			364,580			376,575			404,398			418,501
Acquired with deteriorated credit quality		241,799			246,897			252,901			305,057			313,422
Total loans	$	3,933,715		$	3,949,122		$	2,712,068		$	2,602,213		$	2,396,995
ALLL breakdown:
Originated loans and leases
Individually evaluated for impairment	$	1,199		$	1,288		$	517		$	309		$	62
Collectively evaluated for impairment		25,474			25,263			22,011			19,427			17,398
Acquired loans through business acquisitions - non-impaired
Individually evaluated for impairment		—			—			7			—			—
Collectively evaluated for impairment		2,466			2,906			2,748			2,570			2,347
Seasoned SFR mortgage loan pools - non-impaired		—			—			—			—			—
Acquired with deteriorated credit quality		206			23			—			321			196
Total ALLL	$	29,345		$	29,480		$	25,283		$	22,627		$	20,003
Discount on Purchased/Acquired Loans:
Acquired loans through business acquisitions - non-impaired	$	16,877		$	16,441		$	6,512		$	6,536		$	7,479
Seasoned SFR mortgage loan pools - non-impaired		28,967			29,955			30,811			33,044			34,619
Acquired with deteriorated credit quality		53,381			55,865			57,961			84,876			89,302
Total Discount	$	99,225		$	102,261		$	95,284		$	124,456		$	131,400
Ratios:
To originated loans:
Individually evaluated for impairment		4.09	%		4.40	%		1.78	%		1.04	%		0.46	%
Collectively evaluated for impairment		1.31	%		1.34	%		1.32	%		1.34	%		1.44	%
Total ALLL		1.35	%		1.38	%		1.33	%		1.34	%		1.43	%
To originated and acquired non-impaired loans:
Individually evaluated for impairment		3.73	%		3.85	%		1.41	%		0.86	%		0.41	%
Collectively evaluated for impairment		0.85	%		0.85	%		1.21	%		1.18	%		1.20	%
Total ALLL		0.87	%		0.88	%		1.21	%		1.18	%		1.19	%
Total ALLL and discount(1)		1.38	%		1.38	%		1.53	%		1.52	%		1.64	%
To total loans:
Individually evaluated for impairment		3.73	%		3.85	%		1.41	%		0.86	%		0.41	%
Collectively evaluated for impairment		0.76	%		0.77	%		1.02	%		0.97	%		0.95	%
Total ALLL		0.75	%		0.75	%		0.93	%		0.87	%		0.83	%
Total ALLL and discount(1)		3.27	%		3.34	%		4.45	%		5.65	%		6.32	%

(1) The ratios were calculated by dividing a sum of ALLL and discounts by carrying value of loans.

5

Banc of California, Inc

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

	March 31,			December 31,			September 30,			June 30,			March 31,
	2015			2014			2014			2014			2014
Composition of held for investment loans and leases
Commercial real estate	$	975,734		$	999,857		$	521,867		$	535,744		$	560,581
Multi-family		940,053			955,683			367,364			234,179			155,382
Construction		38,081			42,198			25,997			30,761			25,144
Commercial and industrial		489,229			490,900			366,416			368,540			299,184
SBA		48,254			36,155			25,729			28,684			26,541
Lease financing		102,012			85,749			72,027			57,754			48,537
Total commercial loans		2,593,363			2,610,542			1,379,400			1,255,662			1,115,369
Single family residential mortgage		1,169,134			1,171,662			1,191,021			1,212,813			1,158,863
Other consumer		171,218			166,918			141,647			133,738			122,763
Total consumer loans		1,340,352			1,338,580			1,332,668			1,346,551			1,281,626
Total gross loans and leases	$	3,933,715		$	3,949,122		$	2,712,068		$	2,602,213		$	2,396,995
Composition percentage of held for investment loans and leases
Commercial real estate		24.8	%		25.3	%		19.2	%		20.6	%		23.4	%
Multi-family		23.9	%		24.2	%		13.5	%		9.0	%		6.5	%
Construction		1.0	%		1.1	%		1.0	%		1.2	%		1.0	%
Commercial and industrial		12.4	%		12.4	%		13.5	%		14.2	%		12.5	%
SBA		1.2	%		0.9	%		0.9	%		1.1	%		1.1	%
Lease financing		2.6	%		2.2	%		2.7	%		2.2	%		2.0	%
Total commercial loans		65.9	%		66.1	%		50.8	%		48.3	%		46.5	%
Single family residential mortgage		29.7	%		29.7	%		44.0	%		46.6	%		48.4	%
Other consumer		4.4	%		4.2	%		5.2	%		5.1	%		5.1	%
Total consumer loans		34.1	%		33.9	%		49.2	%		51.7	%		53.5	%
Total gross loans and leases		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Composition of deposits
Noninterest-bearing checking	$	749,129		$	662,295		$	457,743		$	408,404		$	430,925
Interest-bearing checking		1,032,482			1,054,828			779,704			688,699			644,649
Money market		1,136,562			1,074,432			769,291			618,231			502,368
Savings		898,483			985,646			932,133	��		985,028			986,201
Certificates of deposit		1,045,336			894,630			692,839			646,993			545,003
Total deposits	$	4,861,992		$	4,671,831		$	3,631,710		$	3,347,355		$	3,109,146
Composition percentage of deposits
Noninterest-bearing checking		15.4	%		14.2	%		12.6	%		12.2	%		13.9	%
Interest-bearing checking		21.2	%		22.6	%		21.5	%		20.6	%		20.7	%
Money market		23.4	%		23.0	%		21.2	%		18.5	%		16.2	%
Savings		18.5	%		21.1	%		25.6	%		29.4	%		31.7	%
Certificates of deposit		21.5	%		19.1	%		19.1	%		19.3	%		17.5	%
Total deposits		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

6

Banc of California, Inc

Average Balance, Average Yield Earned, and Average Cost Paid

(Dollars in thousands)

(Unaudited)

	Three months ended
	March 31, 2015								December 31, 2014								September 30, 2014
	Average Balance			Interest		Yield / Cost			Average Balance			Interest		Yield / Cost			Average Balance			Interest		Yield / Cost
Interest earning assets:
Loans held for sale and SFR mortgage	$	1,868,085		$	17,477		3.79	%	$	1,778,112		$	16,741		3.74	%	$	1,757,890		$	16,979		3.83	%
Seasoned SFR mortgage loan pools		591,724			9,413		6.45	%		606,879			9,605		6.28	%		675,083			11,753		6.91	%
Commercial real estate, multi-family, and construction		1,956,830			22,508		4.66	%		1,486,406			17,993		4.80	%		827,934			9,592		4.60	%
Commercial and industrial, SBA, and lease financing		572,726			7,239		5.13	%		523,194			6,192		4.70	%		451,992			5,060		4.44	%
Other consumer		150,034			1,518		4.10	%		139,837			2,068		5.87	%		116,305			1,171		3.99	%
Gross loans and leases		5,139,399			58,155		4.59	%		4,534,428			52,599		4.60	%		3,829,204			44,555		4.62	%
Securities		354,475			1,927		2.20	%		310,454			1,781		2.28	%		257,067			1,460		2.25	%
Other interest-earning assets		219,892			698		1.29	%		189,091			700		1.47	%		142,284			634		1.77	%
Totalinterest-earning assets		5,713,766			60,780		4.31	%		5,033,973			55,080		4.34	%		4,228,555			46,649		4.38	%
Allowance for loan and lease losses		(29,623	)							(26,105	)							(23,266	)
BOLI and non-interest earning assets		247,283								215,595								186,234
Total assets	$	5,931,426							$	5,223,463							$	4,391,523
Interest-bearing liabilities:
Savings	$	945,530		$	1,748		0.75	%	$	960,253		$	1,963		0.81	%	$	953,925		$	2,215		0.92	%
Interest-bearing checking		1,042,895			2,041		0.79	%		937,623			2,078		0.88	%		745,635			2,037		1.08	%
Money market		1,092,987			958		0.36	%		964,414			841		0.35	%		681,576			673		0.39	%
Certificates of deposit		1,004,261			1,614		0.65	%		837,174			1,558		0.74	%		688,994			1,240		0.71	%
Total interest-bearing deposits		4,085,673			6,361		0.63	%		3,699,464			6,440		0.69	%		3,070,130			6,165		0.80	%
FHLB advances		487,600			353		0.29	%		307,859			210		0.27	%		276,739			118		0.17	%
Long-term debt and other interest-bearing liabilities		96,379			2,069		8.71	%		98,672			2,099		8.44	%		101,932			2,180		8.48	%
Total interest-bearing liabilities		4,669,652			8,783		0.76	%		4,105,995			8,749		0.85	%		3,448,801			8,463		0.97	%
Noninterest-bearing deposits		682,492								577,623								448,825
Non-interest-bearing liabilities		61,947								52,267								44,505
Total liabilities		5,414,091								4,735,885								3,942,131
Total stockholders’ equity		517,335								487,578								449,392
Total liabilities and stockholders’ equity	$	5,931,426							$	5,223,463							$	4,391,523
Net interest income/spread				$	51,997		3.55	%				$	46,331		3.49	%				$	38,186		3.41	%
Net interest margin							3.69	%							3.65	%							3.58	%
Ratio of interest-earning assets to interest-bearing liabilities		122.36	%							122.60	%							122.61	%
Total deposits	$	4,768,165		$	6,361		0.54	%	$	4,277,087		$	6,440		0.60	%	$	3,518,955		$	6,165		0.70	%
Total funding (1)	$	5,352,144		$	8,783		0.67	%	$	4,683,618		$	8,749		0.76	%	$	3,897,626		$	8,463		0.88	%

(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 fundings.

7

Banc of California, Inc

Average Balance, Average Yield Earned, and Average Cost Paid, Continued

(Dollars in thousands)

(Unaudited)

	Three months ended
	June 30, 2014								March 31, 2014
	Average Balance			Interest		Yield / Cost			Average Balance			Interest		Yield / Cost
Interest earning assets:
Loans held for sale and SFR mortgage	$	1,590,982		$	15,158		3.82	%	$	1,397,650		$	13,391		3.89	%
Seasoned SFR mortgage loan pools		701,006			11,723		6.71	%		751,191			13,072		7.06	%
Commercial real estate, multi-family, and construction		734,472			8,689		4.75	%		684,063			8,220		4.87	%
Commercial and industrial, SBA, and lease financing		418,170			5,413		5.19	%		357,673			5,893		6.68	%
Other consumer		109,063			1,094		4.02	%		99,112			954		3.90	%
Gross loans and leases		3,553,693			42,077		4.75	%		3,289,689			41,530		5.12	%
Securities		168,230			993		2.37	%		163,007			924		2.30	%
Other interest-earning assets		136,849			564		1.65	%		115,396			322		1.13	%
Total interest-earning assets		3,858,772			43,634		4.54	%		3,568,092			42,776		4.86	%
Allowance for loan and lease losses		(20,567	)							(19,392	)
BOLI and non-interest earning assets		196,242								179,470
Total assets	$	4,034,447							$	3,728,170
Interest-bearing liabilities:
Savings	$	990,894		$	2,425		0.98	%	$	966,361		$	2,516		1.06	%
Interest-bearing checking		660,341			1,864		1.13	%		593,126			1,715		1.17	%
Money market		603,917			639		0.42	%		515,131			572		0.45	%
Certificates of deposit		600,498			1,143		0.76	%		518,266			932		0.73	%
Total interest-bearing deposits		2,855,650			6,071		0.85	%		2,592,884			5,735		0.90	%
FHLB advances		226,429			99		0.18	%		259,611			100		0.16	%
Long-term debt and other interest-bearing liabilities		93,345			1,889		8.12	%		91,020			1,756		7.82	%
Total interest-bearing liabilities		3,175,424			8,059		1.02	%		2,943,515			7,591		1.05	%
Noninterest-bearing deposits		428,221								416,074
Non-interest-bearing liabilities		45,704								38,964
Total liabilities		3,649,349								3,398,553
Total stockholders’ equity		385,098								329,617
Total liabilities and stockholders’ equity	$	4,034,447							$	3,728,170
Net interest income/spread				$	35,575		3.52	%				$	35,185		3.81	%
Net interest margin							3.70	%							4.00	%
Ratio of interest-earning assets to interest-bearing liabilities		121.52	%							121.22	%
Total deposits	$	3,283,871		$	6,071		0.74	%	$	3,008,958		$	5,735		0.77	%
Total funding (1)	$	3,603,645		$	8,059		0.90	%	$	3,359,589		$	7,591		0.92	%

(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 fundings.

8

Banc of California, Inc

Capital Ratios

(Unaudited)

	March 31, 2015(1)			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
Capital Ratios:
Banc of California, Inc.
Total risk-based capital ratio:		11.58	%		11.28	%		14.97	%		15.19	%		11.93	%
Tier 1 risk-based capital ratio:		10.86	%		10.54	%		14.03	%		14.10	%		10.86	%
Common equity tier 1 capital ratio(1)		9.04	%		N/A			N/A			N/A			N/A
Tier 1 leverage ratio:		8.02	%		8.57	%		9.28	%		9.89	%		7.59	%
Banc of California, NA
Total risk-based capital ratio:		13.61	%		12.04	%		15.75	%		14.88	%		14.52	%
Tier 1 risk-based capital ratio:		12.89	%		11.29	%		14.80	%		13.79	%		13.45	%
Common equity tier 1 capital ratio(1)		12.89	%		N/A			N/A			N/A			N/A
Tier 1 leverage ratio:		9.51	%		9.17	%		9.80	%		9.72	%		9.41	%

(1) From the first quarter of 2015, BASEL III common equity tier 1 capital ratio is required.

9

Banc of California, Inc

Non-GAAP Measures

(Dollars in thousands, except per share data)

(Unaudited)

Non-GAAP performance measure:

Tangible common equity to tangible assets ratio and return on average tangible common equity are supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP measures are used by management in the analysis of Banc of California, Inc.’s capital strength and performance of businesses. Tangible equity is calculated by subtracting goodwill and other intangible assets from total stockholders’ equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from total stockholders’ equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Banc of California, Inc. This disclosure should not be viewed as a substitution 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 reconcile this non-GAAP performance measures to the GAAP performance measures for the periods indicated:

	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
Tangible common equity to tangible assets ratio
Total assets	$	6,097,355		$	5,971,297		$	4,537,826		$	4,386,331		$	4,030,465
Less goodwill		(31,591	)		(31,591	)		(31,591	)		(32,150	)		(32,868	)
Less other intangible assets		(23,708	)		(25,252	)		(10,829	)		(10,959	)		(11,213	)
Tangible assets	$	6,042,056		$	5,914,454		$	4,495,406		$	4,343,222		$	3,986,384
Total stockholders’ equity	$	514,160		$	503,315		$	446,711		$	439,127		$	325,157
Less preferred stock		(79,877	)		(79,877	)		(79,877	)		(79,877	)		(79,877	)
Less goodwill		(31,591	)		(31,591	)		(31,591	)		(32,150	)		(32,868	)
Less other intangible assets		(23,708	)		(25,252	)		(10,829	)		(10,959	)		(11,213	)
Tangible common equity	$	378,984		$	366,595		$	324,414		$	316,141		$	201,199
Total stockholders’ equity to total assets		8.43	%		8.43	%		9.84	%		10.01	%		8.07	%
Tangible common equity to tangible assets		6.27	%		6.20	%		7.22	%		7.28	%		5.05	%
Common stock outstanding		35,063,199			34,190,740			28,023,701			27,032,464			19,666,469
Class B non-voting non-convertible common stock outstanding		11			609,195			602,783			596,018			590,068
Total common stock outstanding		35,063,210			34,799,935			28,626,484			27,628,482			20,256,537
Minimum number of shares issuable under purchase contracts (1)		2,984,367			3,215,538			4,198,425			5,101,326			—
Total common stock outstanding and shares issuable under purchase contracts		38,047,577			38,015,473			32,824,909			32,729,808			20,256,537
(1)    Purchase contracts relating to the tangible equity units
Tangible common equity per common stock	$	10.81		$	10.53		$	11.33		$	11.44		$	9.93
Book value per common stock	$	12.39		$	12.17		$	12.81		$	13.00		$	12.11
Tangible equity per common stock and shares issuable under purchase contracts	$	9.96		$	9.64		$	9.88		$	9.66		$	9.93
Book value per common stock and shares issuable under purchase contracts	$	11.41		$	11.14		$	11.18		$	10.98		$	12.11

10

Banc of California, Inc

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

	Three months ended
	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
Return on tangible common equity
Average total stockholders’ equity	$	517,335		$	487,578		$	449,392		$	385,098		$	329,617
Less average preferred stock		(79,877	)		(79,877	)		(79,877	)		(79,877	)		(79,877	)
Less average goodwill		(31,591	)		(33,129	)		(32,209	)		(33,020	)		(30,923	)
Less average other intangible assets		(24,720	)		(13,611	)		(10,634	)		(10,871	)		(11,832	)
Average tangible common equity	$	381,147		$	360,961		$	326,672		$	261,330		$	206,985
Net income	$	12,574		$	10,110		$	11,247		$	8,099		$	749
Less preferred stock dividends		(910	)		(910	)		(910	)		(910	)		(910	)
Add tax-effected amortization of intangible assets (1)		1,004			849			579			614			610
Add tax-effected impairment on intangible assets (1)		—			31			—			—			—
Net income (loss) available to common stockholders	$	12,668		$	10,080		$	10,916		$	7,803		$	449
(1)    Utilized a 35% effective tax rate
Return on average equity		9.86	%		8.23	%		9.93	%		8.44	%		0.92	%
Return on average tangible common equity		13.48	%		11.08	%		13.26	%		11.98	%		0.88	%

11