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

Exhibit 99.1

Banc of California Reports Record First Quarter Earnings

IRVINE, Calif., (April 21, 2016) –Banc of California, Inc. (NYSE: BANC) today reported record quarterly net income of $19.7 million for the first quarter of 2016, resulting in diluted earnings per share of $0.36 for the quarter.

Pre-tax income for the first quarter of 2016 was $33.0 million, an increase of 49% compared to first quarter of 2015. Net income available to common shareholders for the first quarter was $15.1 million, an increase of 30% compared to the first quarter of 2015.

Highlights for the first quarter included:

• Record quarterly non-interest bearing deposit growth of $278 million, or 25%.

• Quarterly commercial banking segment loan and lease originations of $823 million, an increase of 66% from a year ago.

• The Company’s return on average assets for the quarter was 0.9%, and its return on average tangible common equity (ROTCE) for the quarter was 14.5%.

The Company’s consolidated assets totaled $9.6 billion at March 31, 2016, an increase of $1.4 billion, or 17%, compared to the prior quarter, and an increase of $3.5 billion, or 58%, compared to a year ago. The Company’s growth over this period has been entirely organic as Banc of California’s last acquisition occurred in 2014.

“Based on total shareholder return since the beginning of 2015, Banc of California is the #1 performing bank stock amongst Forbes’ Magazine’s list of America’s Top 100 Banks,” said Steven Sugarman, Chairman and Chief Executive Officer of Banc of California. “In the first quarter of 2016 alone, Banc of California’s 21% return outperformed the next closest bank by 7%. As all our employees are shareholders, we are proud and excited by this accomplishment. The continued strength of our financial performance showcases our strategy, focus and execution quarter-over-quarter as we are winning market share and top talent. Banc of California is a business built for the long-term.”

During the first quarter, the Company raised $81 million in common stock, raised $125 million in Perpetual, Non-Cumulative Preferred Stock and liquidated its wholly owned subsidiary PTB Property Holdings LLC. Since the end of the first quarter, the Company has redeemed its $42 million preferred stock from the Small Business Lending Fund (SBLF), redeemed $85 million of 7.50% Senior Notes, announced the sale of its wholly owned subsidiary, The Palisades Group, LLC, and increased its undrawn line of credit to $75 million.

“Banc of California has meaningfully deleveraged and simplified its balance sheet, increased its liquidity and streamlined its businesses and organizational structure during 2016,” said James McKinney, Chief Financial Officer of Banc of California. “We expect these actions will not only make us a safer and stronger financial institution, but they will be accretive to the holders of our debt, preferred stock and common stock. These actions are part of our strategy to strengthen, and increase the durability of, our balance-sheet and liquidity in advance of our growth beyond $10 billion in assets. We will continue to seek opportunities to strengthen our franchise for the benefit of all our clients and other stakeholders.”

During the quarter, Banc of California grew its recurring net interest income by $8 million, built its earning assets by $1.4 billion, and strengthened its liquidity position by $0.9 billion, while maintaining its net interest margin. These results occurred while the yield on the 10-year Treasury fell from 2.27% to 1.78%.

“We are proud that our interest rate risk controls and balance sheet management strategy enabled our bank to successfully navigate a volatile rate environment without impacting the consistency and predictability of our earnings,” Sugarman said. “The negative fair value adjustments on our mortgage servicing rights and SWAPs were offset by concurrent intra-quarter fair value gains recognized in our securities portfolio. We believe this further validates the investments we have made and continue to make in our enterprise risk analytics and controls. Our analytical approach to building our balance sheet and our business continues to support our track record of consistent, growing earnings.”

The Company will host a conference call to discuss its first quarter financial results at 7:00 a.m. Pacific Time (PT) on Thursday, April 21, 2016. Interested parties are welcome to attend the conference call by dialing 888-317-6003, and referencing event code 4042337. A live audio webcast will also be available and the webcast link will be posted on the Company’s Investor Relations website atwww.bancofcal.com/investor. The slide presentation for the call will also be available on the Company’s Investor Relations website prior to the call.

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

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) provides comprehensive banking services to California’s diverse businesses, entrepreneurs and communities. Banc of California operates over 100 offices in California and the West.

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

Banc of California, Inc.

Consolidated Statements of Financial Condition

(Dollars in thousands)

(Unaudited)

	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
ASSETS
Cash and cash equivalents	$	215,012		$	156,124		$	378,963		$	458,990		$	265,402
Time deposits in financial institutions		1,500			1,500			1,900			1,900			1,900
Securities available for sale		1,663,711			833,596			693,219			487,293			393,586
Securities held to maturity		962,262			962,203			529,532			53,414			—
Loans held for sale		863,944			668,841			596,565			746,651			1,240,942
Loans and leases receivable		5,463,068			5,184,394			4,730,077			4,473,095			3,933,715
Allowance for loan and lease losses		(35,845	)		(35,533	)		(34,774	)		(34,787	)		(29,345	)
Federal Home Loan Bank and other bank stock		61,146			59,069			40,643			34,187			39,844
Servicing rights, net		49,406			50,727			41,646			34,942			21,829
Other real estate owned, net		325			1,097			34			50			498
Premises and equipment, net		114,668			111,539			34,689			35,229			78,285
Goodwill		39,244			39,244			39,244			31,591			31,591
Other intangible assets, net		17,836			19,158			20,504			21,905			23,708
Deferred income tax		7,441			11,341			13,388			12,081			14,157
Income tax receivable		—			604			2,649			3,091			—
Bank-owned life insurance investment		100,734			100,171			99,570			19,201			19,154
Other assets		92,520			71,480			68,961			59,049			62,089
Total assets	$	9,616,972		$	8,235,555		$	7,256,810		$	6,437,882		$	6,097,355
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-bearing deposits	$	1,398,728		$	1,121,124		$	1,011,169		$	867,930		$	749,129
Interest-bearing deposits		5,438,873			5,181,961			4,410,821			4,184,260			4,112,863
Deposits held for sale		—			—			—			52,820			—
Total deposits		6,837,601			6,303,085			5,421,990			5,105,010			4,861,992
Advances from Federal Home Loan Bank		1,195,000			930,000			830,000			350,000			545,000
Securities sold under repurchase agreements		257,100			—			—			—			—
Other borrowings		—			—			—			—			15,000
Notes payable, net		260,896			261,876			262,779			264,077			92,668
Reserve for loss on repurchased loans		9,781			9,700			9,098			9,411			8,432
Income taxes payable		12,303			1,241			5,939			—			4,488
Accrued expenses and other liabilities		176,761			77,248			83,470			75,502			55,615
Total liabilities		8,749,442			7,583,150			6,613,276			5,804,000			5,583,195
Commitments and contingent liabilities
Preferred stock, Series A, non-cumulative perpetual		31,934			31,934			31,934			31,934			31,934
Preferred stock, Series B, non-cumulative perpetual		10,000			10,000			10,000			10,000			10,000
Preferred stock, Series C, 8.00% non-cumulative perpetual		37,943			37,943			37,943			37,943			37,943
Preferred stock, Series D, 7.375% non-cumulative perpetual		110,873			110,873			110,873			110,873			—
Preferred stock, Series E, 7.00% non-cumulative perpetual		120,258			—			—			—			—
Common stock		454			395			393			372			367
Common stock, class B non-voting non-convertible		1			1			—			—			—
Additional paid-in capital		509,123			429,790			427,599			425,784			424,636
Retained earnings		73,179			63,534			52,277			45,494			36,880
Treasury stock		(29,070	)		(29,070	)		(29,070	)		(29,070	)		(29,798	)
Accumulated other comprehensive income/(loss), net		2,835			(2,995	)		1,585			552			2,198
Total stockholders’ equity		867,530			652,405			643,534			633,882			514,160
Total liabilities and stockholders’ equity	$	9,616,972		$	8,235,555		$	7,256,810		$	6,437,882		$	6,097,355

Banc of California, Inc.

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended
	March 31, 2016			December 31, 2015		September 30, 2015			June 30, 2015		March 31, 2015
Interest and dividend income
Loans, including fees	$	67,144		$	62,248	$	60,454		$	60,699	$	58,155
Securities		16,047			11,163		5,054			2,119		1,927
Dividends and other interest-earning assets		1,049			788		1,007			2,026		698
Total interest and dividend income		84,240			74,199		66,515			64,844		60,780
Interest expense
Deposits		8,107			6,862		6,395			6,165		6,361
Federal Home Loan Bank advances		1,262			890		587			290		353
Securities sold under repurchase agreements		160			15		3			—		—
Notes payable and other interest-bearing liabilities		4,294			4,366		3,980			4,285		2,069
Total interest expense		13,823			12,133		10,965			10,740		8,783
Net interest income		70,417			62,066		55,550			54,104		51,997
Provision for loan and lease losses		321			1,260		735			5,474		—
Net interest income after provision for loan and lease losses		70,096			60,806		54,815			48,630		51,997
Noninterest income
Customer service fees		848			957		1,118			1,072		910
Loan servicing (loss) income		(5,288	)		3,663		(2,254	)		2,007		(442	)
Net gain on sale of securities available for sale		16,789			1,510		1,750			—		(2	)
Net gain on sale of loans		2,195			15,164		9,737			7,838		4,472
Mortgage banking income		33,684			30,334		37,015			39,403		37,933
Advisory service fees		997			1,942		2,294			4,435		1,197
Loan brokerage income		874			678		660			661		1,141
Gain on sale of building		—			—		—			9,919		—
All other income		1,860			2,571		407			1,358		771
Total noninterest income		51,959			56,819		50,727			66,693		45,980
Noninterest expense
Salaries and employee benefits		57,183			54,008		53,215			56,120		49,771
Occupancy and equipment		11,740			11,200		10,109			10,325		9,771
Professional fees		6,212			4,808		5,261			6,689		3,435
Data processing		2,194			2,104		2,170			2,075		1,835
Amortization of intangible assets		1,322			1,346		1,401			1,545		1,544
All other expenses		10,449			13,193		9,587			11,166		9,523
Total noninterest expense		89,100			86,659		81,743			87,920		75,879
Income before income taxes		32,955			30,966		23,799			27,403		22,098
Income tax (benefit) expense		13,268			11,928		9,263			11,479		9,524
Net income		19,687			19,038		14,536			15,924		12,574
Preferred stock dividends		4,575			3,030		3,040			2,843		910
Net income available to common stockholders	$	15,112		$	16,008	$	11,496		$	13,081	$	11,664
Basic earnings per total common share	$	0.36		$	0.40	$	0.29		$	0.33	$	0.30
Diluted earnings per total common share	$	0.36		$	0.39	$	0.29		$	0.32	$	0.29

Banc of California, Inc.

Selected Financial Data

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Average balances
Total assets	$	8,833,176		$	7,590,781		$	6,681,590		$	6,253,350		$	5,931,426
Total gross loans and leases		5,995,436			5,531,539			5,271,293			5,254,729			5,139,399
Investment Securities		2,128,882			1,506,626			828,326			402,366			354,475
Total interest earning assets		8,344,167			7,264,341			6,449,862			5,967,200			5,713,766
Total interest-bearing deposits		5,332,032			4,685,145			4,314,330			4,078,540			4,085,673
Total borrowings		1,219,315			1,141,554			745,959			635,460			583,979
Total interest bearing liabilities		6,641,742			5,826,699			5,060,289			4,714,000			4,669,652
Total stockholders’ equity		762,923			654,106			645,713			630,547			517,335
Profitability and other ratios
Return on average assets(1)		0.90	%		1.00	%		0.86	%		1.02	%		0.86	%
Return on average equity(1)		10.38	%		11.55	%		8.93	%		10.13	%		9.86	%
Return on average tangible common equity(2)		14.46	%		16.57	%		12.25	%		14.52	%		13.48	%
Dividend payout ratio(3)		33.33	%		30.00	%		41.38	%		36.36	%		40.00	%
Net interest spread		3.22	%		3.22	%		3.23	%		3.45	%		3.55	%
Net interest margin(1)		3.39	%		3.39	%		3.42	%		3.64	%		3.69	%
Noninterest income to total revenue(4)		42.46	%		47.79	%		47.73	%		55.21	%		46.93	%
Noninterest income to average total assets(1)		2.37	%		2.97	%		3.01	%		4.28	%		3.14	%
Noninterest expense to average total assets(1)		4.06	%		4.53	%		4.85	%		5.64	%		5.19	%
Efficiency ratio(5)		72.81	%		72.89	%		76.92	%		72.78	%		77.45	%
Average held for investment loans and leases to average deposits		79.76	%		86.88	%		86.03	%		79.87	%		81.72	%
Average investment securities to average total assets		24.10	%		19.85	%		12.40	%		6.43	%		5.98	%
Average stockholders’ equity to average total assets		8.64	%		8.62	%		9.66	%		10.08	%		8.72	%
Allowance for loan and lease losses (ALLL)
Balance at beginning of period	$	35,533		$	34,774		$	34,787		$	29,345		$	29,480
Loans and leases charged off		(102	)		(718	)		(788	)		(79	)		(357	)
Recoveries		93			217			40			47			222
Transfer of loans from (to) held-for-sale		—			—			—			—			—
Provision for loan and lease losses		321			1,260			735			5,474			—
Balance at end of period	$	35,845		$	35,533		$	34,774		$	34,787		$	29,345
Annualized net loan charge-offs to average total gross loans held for investment		0.00	%		0.04	%		0.07	%		0.00	%		0.01	%
Reserve for loss on repurchased loans
Balance at beginning of period	$	9,700		$	9,098		$	9,411		$	8,432		$	8,303
Provision for loan repurchases		379			735			716			1,573			1,328
Change in estimates		—			846			—			—			—
Utilization of reserve for loan repurchases		(298	)		(979	)		(1,029	)		(594	)		(1,199	)
Balance at end of period	$	9,781		$	9,700		$	9,098		$	9,411		$	8,432

(1) Ratios are presented on an annualized basis.

(2) Non-GAAP measure. See Non-GAAP measures section for reconciliation of the calculation.

(3) Dividends declared per common share divided by basic earnings per share.

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

(5) 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.

Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Asset quality information and ratios
30 to 89 days delinquent, excluding PCI loans	$	36,022		$	39,946		$	48,550		$	46,820		$	40,641
90+ days delinquent, excluding PCI loans		27,469			23,338			23,725			22,855			20,538
Total delinquent loans, excluding PCI loans		63,491			63,284			72,275			69,675			61,179
PCI loans, 30 to 89 days delinquent		44,191			40,291			17,593			17,351			16,375
PCI loans, 90+ days delinquent		9,806			6,894			6,223			8,648			6,986
Total delinquent PCI loans		53,997			47,185			23,816			25,999			23,361
Total delinquent loans	$	117,488		$	110,469		$	96,091		$	95,674		$	84,540
Total delinquent non-PCI loans to total non-PCI loans		1.33	%		1.42	%		1.66	%		1.66	%		1.66	%
Total delinquent loans to gross loans		2.15	%		2.13	%		2.03	%		2.14	%		2.15	%
Non-performing loans, excluding PCI loans	$	44,216		$	45,129		$	45,188		$	42,708		$	42,754
90+ days delinquent and still accruing loans, excluding PCI loans		—			—			—			—			—
Other real estate owned		325			1,097			34			50			498
Non-performing assets	$	44,541		$	46,226		$	45,222		$	42,758		$	43,252
ALLL to non-performing loans		81.07	%		78.74	%		76.95	%		81.45	%		68.64	%
Non-performing loans to gross loans		0.81	%		0.87	%		0.96	%		0.95	%		1.09	%
Non-performing assets to total assets		0.46	%		0.56	%		0.62	%		0.66	%		0.71	%
Troubled Debt Restructurings (TDRs)
Performing TDRs	$	15,128		$	7,842		$	9,378		$	7,402		$	7,431
Non-performing TDRs		2,545			1,970			2,017			1,937			1,964
Total TDRs	$	17,673		$	9,812		$	11,395		$	9,339		$	9,395

Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Loan and lease breakdown by ALLL evaluation type
Originated loans and leases
Individually evaluated for impairment	$	26,565		$	30,654		$	31,008		$	31,791		$	29,301
Collectively evaluated for impairment		3,484,995			3,117,528			2,776,601			2,489,347			1,947,212
Acquired loans through business acquisitions - non-impaired
Individually evaluated for impairment		3,530			3,629			1,704			8			2,818
Collectively evaluated for impairment		1,079,711			1,124,874			1,174,573			1,294,384			1,358,184
Seasoned SFR mortgage loan pools - non-impaired
Individually evaluated for impairment		9,287			—			—			—			—
Collectively evaluated for impairment		175,004			194,978			373,634			391,193			354,402
Acquired with deteriorated credit quality		683,976			712,731			372,557			266,372			241,798
Total loans	$	5,463,068		$	5,184,394		$	4,730,077		$	4,473,095		$	3,933,715
ALLL breakdown
Originated loans and leases
Individually evaluated for impairment	$	365		$	369		$	512		$	686		$	1,199
Collectively evaluated for impairment		32,202			32,713			31,419			31,440			25,474
Acquired loans through business acquisitions - non-impaired
Individually evaluated for impairment		—			—			—			—			—
Collectively evaluated for impairment		2,061			2,245			2,637			2,455			2,466
Seasoned SFR mortgage loan pools - non-impaired
Individually evaluated for impairment		1,011			—			—			—			—
Collectively evaluated for impairment		—			—			—			—			—
Acquired with deteriorated credit quality		206			206			206			206			206
Total ALLL	$	35,845		$	35,533		$	34,774		$	34,787		$	29,345
Discount on Purchased/Acquired Loans
Acquired loans through business acquisitions - non-impaired	$	20,781		$	21,366		$	21,759		$	15,245		$	16,877
Seasoned SFR mortgage loan pools - non-impaired		11,862			12,545			27,699			29,201			28,967
Acquired with deteriorated credit quality		66,573			68,372			41,280			52,394			53,381
Total Discount	$	99,216		$	102,283		$	90,738		$	96,840		$	99,225
Ratios
To originated loans and leases:
Individually evaluated for impairment		1.37	%		1.20	%		1.65	%		2.16	%		4.09	%
Collectively evaluated for impairment(1)		0.92	%		1.05	%		1.13	%		1.26	%		1.31	%
Total ALLL		0.93	%		1.05	%		1.14	%		1.27	%		1.35	%
To originated loans and leases and acquired loans not impaired at acquisition:
Individually evaluated for impairment		1.21	%		1.08	%		1.57	%		2.16	%		3.73	%
Collectively evaluated for impairment		0.75	%		0.82	%		0.86	%		0.90	%		0.85	%
Total ALLL		0.75	%		0.83	%		0.87	%		0.91	%		0.87	%
Total ALLL and discount(2)		1.21	%		1.33	%		1.41	%		1.31	%		1.38	%
To total loans and leases:
Individually evaluated for impairment		3.49	%		1.08	%		1.57	%		2.16	%		3.73	%
Collectively evaluated for impairment		0.72	%		0.79	%		0.79	%		0.81	%		0.76	%
Total ALLL		0.66	%		0.69	%		0.74	%		0.78	%		0.75	%
Total ALLL and discount(2)		2.47	%		2.66	%		2.65	%		2.94	%		3.27	%

(1) For the three months ended June 30, 2015 and March 31, 2015, the ratios included an unallocated allowance for loan and lease losses of $2.2 million and $364 thousand. Without the unallocated, the ratios are 1.17% and 1.29% for the three months ended June 30, 2015 and March 31, 2015, respectively.

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

Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Composition of held for investment loans and leases
Commercial real estate	$	713,693		$	727,707		$	690,862		$	807,146		$	975,734
Multi-family		1,021,097			904,300			823,415			696,768			940,053
Construction		68,241			55,289			39,475			32,022			38,081
Commercial and industrial		983,961			876,999			822,690			771,477			489,229
SBA		71,640			57,706			52,985			56,887			48,254
Lease financing		212,836			192,424			162,504			131,189			102,012
Total commercial loans		3,071,468			2,814,425			2,591,931			2,495,489			2,593,363
Single family residential mortgage		2,282,445			2,255,584			2,013,450			1,840,924			1,169,134
Other consumer		109,155			114,385			124,696			136,682			171,218
Total consumer loans		2,391,600			2,369,969			2,138,146			1,977,606			1,340,352
Total gross loans and leases	$	5,463,068		$	5,184,394		$	4,730,077		$	4,473,095		$	3,933,715
Composition percentage of held for investment loans and leases
Commercial real estate		13.1	%		14.0	%		14.6	%		18.0	%		24.8	%
Multi-family		18.7	%		17.4	%		17.4	%		15.6	%		23.9	%
Construction		1.2	%		1.1	%		0.8	%		0.7	%		1.0	%
Commercial and industrial		18.0	%		16.9	%		17.4	%		17.2	%		12.4	%
SBA		1.3	%		1.1	%		1.1	%		1.3	%		1.2	%
Lease financing		3.9	%		3.7	%		3.4	%		2.9	%		2.6	%
Total commercial loans		56.2	%		54.2	%		54.7	%		55.7	%		65.9	%
Single family residential mortgage		41.8	%		43.6	%		42.7	%		41.2	%		29.7	%
Other consumer		2.0	%		2.2	%		2.6	%		3.1	%		4.4	%
Total consumer loans		43.8	%		45.8	%		45.3	%		44.3	%		34.1	%
Total gross loans and leases		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Composition of deposits
Noninterest-bearing checking	$	1,398,728		$	1,121,124		$	1,011,169		$	880,766		$	749,129
Interest-bearing checking		2,052,507			1,697,055			1,458,208			1,002,443			1,032,482
Money market		1,534,492			1,479,931			1,238,180			1,393,751			1,136,562
Savings		844,177			823,618			814,230			843,274			898,483
Certificates of deposit		1,007,697			1,181,357			900,203			984,776			1,045,336
Total deposits	$	6,837,601		$	6,303,085		$	5,421,990		$	5,105,010		$	4,861,992
Composition percentage of deposits
Noninterest-bearing checking		20.5	%		17.8	%		18.6	%		17.3	%		15.4	%
Interest-bearing checking		30.0	%		26.8	%		26.9	%		19.6	%		21.2	%
Money market		22.4	%		23.5	%		22.8	%		27.3	%		23.4	%
Savings		12.3	%		13.1	%		15.0	%		16.5	%		18.5	%
Certificates of deposit		14.8	%		18.8	%		16.7	%		19.3	%		21.5	%
Total deposits		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Banc of California, Inc.

Average Balance, Average Yield Earned, and Average Cost Paid

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	March 31, 2016								December 31, 2015								September 30, 2015
	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	$	2,144,834		$	19,808		3.71	%	$	1,903,331		$	17,584		3.67	%	$	1,966,373		$	18,123		3.66	%
Seasoned SFR mortgage loan pools		876,142			12,710		5.83	%		858,601			12,098		5.59	%		689,666			10,901		6.27	%
Commercial real estate, multi-family, and construction		1,760,646			19,816		4.53	%		1,638,329			19,006		4.60	%		1,568,975			17,643		4.46	%
Commercial and industrial, SBA, and lease financing		1,105,971			13,665		4.97	%		1,020,306			12,754		4.96	%		914,811			12,125		5.26	%
Other consumer		107,843			1,145		4.27	%		110,972			806		2.88	%		131,468			1,662		5.02	%
Gross loans and leases		5,995,436			67,144		4.50	%		5,531,539			62,248		4.46	%		5,271,293			60,454		4.55	%
Securities		2,128,882			16,047		3.03	%		1,506,626			11,163		2.94	%		828,326			5,054		2.42	%
Other interest-earning assets		219,849			1,049		1.92	%		226,176			788		1.38	%		350,243			1,007		1.14	%
Total interest-earning assets		8,344,167			84,240		4.06	%		7,264,341			74,199		4.05	%		6,449,862	��		66,515		4.09	%
Allowance for loan and lease losses		(35,575	)							(35,894	)							(34,810	)
BOLI and non-interest earning assets		524,584								362,334								266,538
Total assets	$	8,833,176							$	7,590,781							$	6,681,590
Interest-bearing liabilities
Savings	$	834,965		$	1,572		0.76	%	$	805,445		$	1,538		0.76	%	$	832,006		$	1,575		0.75	%
Interest-bearing checking		1,900,834			3,244		0.69	%		1,475,461			2,663		0.72	%		1,282,066			2,273		0.70	%
Money market		1,437,332			1,679		0.47	%		1,343,683			1,267		0.37	%		1,294,554			1,337		0.41	%
Certificates of deposit		1,158,901			1,612		0.56	%		1,060,556			1,394		0.52	%		905,704			1,210		0.53	%
Total interest-bearing deposits		5,332,032			8,107		0.61	%		4,685,145			6,862		0.58	%		4,314,330			6,395		0.59	%
FHLB advances		955,659			1,262		0.53	%		869,457			890		0.41	%		476,848			587		0.49	%
Securities sold under repurchase agreements		90,395			160		0.71	%		7,010			15		0.85	%		2,681			3		0.44	%
Long-term debt and other interest-bearing liabilities		263,656			4,294		6.55	%		265,087			4,366		6.53	%		266,430			3,980		5.93	%
Total interest-bearing liabilities		6,641,742			13,823		0.84	%		5,826,699			12,133		0.83	%		5,060,289			10,965		0.86	%
Noninterest-bearing deposits		1,230,991								1,037,966								916,670
Non-interest-bearing liabilities		197,520								72,010								58,918
Total liabilities		8,070,253								6,936,675								6,035,877
Total stockholders’ equity		762,923								654,106								645,713
Total liabilities and stockholders’ equity	$	8,833,176							$	7,590,781							$	6,681,590
Net interest income/spread				$	70,417		3.22	%				$	62,066		3.22	%				$	55,550		3.23	%
Net interest margin							3.39	%							3.39	%							3.42	%
Ratio of interest-earning assets to interest-bearing liabilities		125.63	%							124.67	%							127.46	%
Total deposits	$	6,563,023		$	8,107		0.50	%	$	5,723,111		$	6,862		0.48	%	$	5,231,000		$	6,395		0.49	%
Total funding(1)	$	7,872,733		$	13,823		0.71	%	$	6,864,665		$	12,133		0.70	%	$	5,976,959		$	10,965		0.73	%

(1) Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.

Banc of California, Inc.

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

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	June 30, 2015								March 31, 2015
	Average Balance			Interest		Yield / Cost			Average Balance			Interest		Yield / Cost
Interest earning assets
Loans held for sale and SFR mortgage	$	1,959,738		$	18,984		3.89	%	$	1,868,085		$	17,477		3.79	%
Seasoned SFR mortgage loan pools		591,460			9,690		6.57	%		591,724			9,413		6.45	%
Commercial real estate, multi-family, and construction		1,848,780			21,552		4.68	%		1,956,830			22,508		4.66	%
Commercial and industrial, SBA, and lease financing		697,291			8,871		5.10	%		572,726			7,239		5.13	%
Other consumer		157,460			1,602		4.08	%		150,034			1,518		4.10	%
Gross loans and leases		5,254,729			60,699		4.63	%		5,139,399			58,155		4.59	%
Securities		402,366			2,119		2.11	%		354,475			1,927		2.20	%
Other interest-earning assets		310,105			2,026		2.62	%		219,892			698		1.29	%
Total interest-earning assets		5,967,200			64,844		4.36	%		5,713,766			60,780		4.31	%
Allowance for loan and lease losses		(29,445	)							(29,623	)
BOLI and non-interest earning assets		315,595								247,283
Total assets	$	6,253,350							$	5,931,426
Interest-bearing liabilities
Savings	$	867,532		$	1,606		0.74	%	$	945,530		$	1,748		0.75	%
Interest-bearing checking		1,012,211			1,996		0.79	%		1,042,895			2,041		0.79	%
Money market		1,142,858			1,028		0.36	%		1,092,987			958		0.36	%
Certificates of deposit		1,055,939			1,535		0.58	%		1,004,261			1,614		0.65	%
Total interest-bearing deposits		4,078,540			6,165		0.61	%		4,085,673			6,361		0.63	%
FHLB advances		375,385			290		0.31	%		487,600			353		0.29	%
Securities sold under repurchase agreements		—			—		—			—			—		—
Long-term debt and other interest-bearing liabilities		260,075			4,285		6.61	%		96,379			2,069		8.71	%
Total interest-bearing liabilities		4,714,000			10,740		0.91	%		4,669,652			8,783		0.76	%
Noninterest-bearing deposits		859,420								682,492
Non-interest-bearing liabilities		49,383								61,947
Total liabilities		5,622,803								5,414,091
Total stockholders’ equity		630,547								517,335
Total liabilities and stockholders’ equity	$	6,253,350							$	5,931,426
Net interest income/spread				$	54,104		3.45	%				$	51,997		3.55	%
Net interest margin							3.64	%							3.69	%
Ratio of interest-earning assets to interest-bearing liabilities		126.58	%							122.36	%
Total deposits	$	4,937,960		$	6,165		0.50	%	$	4,768,165		$	6,361		0.54	%
Total funding(1)	$	5,573,420		$	10,740		0.77	%	$	5,352,144		$	8,783		0.67	%

(1) Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.

Banc of California, Inc.

Capital Ratios

(Unaudited)

	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Capital Ratios
Banc of California, Inc.
Total risk-based capital ratio		13.59	%		11.18	%		12.56	%		14.01	%		11.55	%
Tier 1 risk-based capital ratio		13.17	%		10.71	%		12.06	%		13.19	%		10.83	%
Common equity tier 1 capital ratio		8.14	%		7.36	%		8.19	%		8.96	%		9.01	%
Tier 1 leverage ratio		9.27	%		8.07	%		8.97	%		9.55	%		7.99	%
Banc of California, NA
Total risk-based capital ratio		14.03	%		13.45	%		14.93	%		14.86	%		13.58	%
Tier 1 risk-based capital ratio		13.42	%		12.79	%		14.19	%		14.04	%		12.86	%
Common equity tier 1 capital ratio		13.42	%		12.79	%		14.19	%		14.04	%		12.86	%
Tier 1 leverage ratio		9.44	%		9.64	%		10.53	%		10.26	%		9.49	%

Banc of California, Inc.

Non-GAAP Measures

(Dollars in thousands, except per share data)

(Unaudited)

Non-GAAP performance measure:

Tangible equity to tangible assets and Tangible common equity to tangible assets ratios 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 and tangible common equity is calculated by subtracting preferred stock from tangible 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, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Tangible common equity to tangible assets ratio
Total assets	$	9,616,972		$	8,235,555		$	7,256,810		$	6,437,882		$	6,097,355
Less goodwill		(39,244	)		(39,244	)		(39,244	)		(31,591	)		(31,591	)
Less other intangible assets		(17,836	)		(19,158	)		(20,504	)		(21,905	)		(23,708	)
Tangible assets	$	9,559,892		$	8,177,153		$	7,197,062		$	6,384,386		$	6,042,056
Total stockholders’ equity	$	867,530		$	652,405		$	643,534		$	633,882		$	514,160
Less goodwill		(39,244	)		(39,244	)		(39,244	)		(31,591	)		(31,591	)
Less other intangible assets		(17,836	)		(19,158	)		(20,504	)		(21,905	)		(23,708	)
Tangible equity		810,450			594,003			583,786			580,386			458,861
Less preferred stock		(311,008	)		(190,750	)		(190,750	)		(190,750	)		(79,877	)
Tangible common equity	$	499,442		$	403,253		$	393,036		$	389,636		$	378,984
Total stockholders’ equity to total assets		9.02	%		7.92	%		8.87	%		9.85	%		8.43	%
Tangible equity to tangible assets		8.48	%		7.26	%		8.11	%		9.09	%		7.59	%
Tangible common equity to tangible assets		5.22	%		4.93	%		5.46	%		6.10	%		6.27	%
Common stock outstanding		43,907,587			38,002,267			37,751,445			35,647,476			35,063,199
Class B non-voting non-convertible common stock outstanding		91,066			37,355			—			—			11
Total common stock outstanding		43,998,653			38,039,622			37,751,445			35,647,476			35,063,210
Minimum number of shares issuable under purchase contracts(1)		253,155			601,299			828,246			2,883,892			2,984,367
Total common stock outstanding and shares issuable under purchase contracts		44,251,808			38,640,921			38,579,691			38,531,368			38,047,577
(1) Purchase contracts relating to the tangible equity units
Tangible common equity per common stock	$	11.35		$	10.60		$	10.41		$	10.93		$	10.81
Book value per common stock	$	12.65		$	12.14		$	11.99		$	12.43		$	12.39
Tangible common equity per common stock and shares issuable under purchase contracts	$	11.29		$	10.44		$	10.19		$	10.11		$	9.96
Book value per common stock and shares issuable under purchase contracts	$	12.58		$	11.95		$	11.74		$	11.50		$	11.41

Banc of California, Inc.

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended
	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Return on tangible common equity
Average total stockholders’ equity	$	762,923		$	654,106		$	645,713		$	630,547		$	517,335
Less average preferred stock		(260,959	)		(190,750	)		(190,750	)		(182,233	)		(79,877	)
Less average goodwill		(39,244	)		(39,244	)		(31,674	)		(31,591	)		(31,591	)
Less average other intangible assets		(18,601	)		(19,877	)		(21,320	)		(23,032	)		(24,720	)
Average tangible common equity	$	444,119		$	404,235		$	401,969		$	393,691		$	381,147
Net income	$	19,687		$	19,038		$	14,536		$	15,924		$	12,574
Less preferred stock dividends		(4,575	)		(3,030	)		(3,040	)		(2,843	)		(910	)
Add tax-effected amortization of intangible assets(1)		859			875			911			1,004			1,004
Add tax-effected impairment on intangible assets(1)		—			—			—			168			—
Net income available to common stockholders	$	15,971		$	16,883		$	12,407		$	14,253		$	12,668
(1) Utilized a 35% effective tax rate
Return on average equity		10.38	%		11.55	%		8.93	%		10.13	%		9.86	%
Return on average tangible common equity		14.46	%		16.57	%		12.25	%		14.52	%		13.48	%