Banc of California (BANC) 8-K Banc of California Reports Record

Exhibit 99.1

Banc of California Reports Record

Third Quarter Earnings

IRVINE, Calif., (October 19, 2016) –Banc of California, Inc. (NYSE: BANC) today reported record quarterly net income of $35.9 million for the third quarter of 2016, resulting in earnings per share of $0.59 for the quarter, fully diluted. Third quarter net income increased 147% compared to the third quarter of 2015. Net income available to common shareholders for the third quarter was $30.8 million, an increase of 168% compared to the third quarter of 2015.

Highlights for the quarter included:

• Record quarterly deposit growth of $1.1 billion, or 15%, and annual deposit growth of $3.7 billion, or 67%.

• Quarterly loan production of $2.6 billion, driven by quarterly commercial banking segment loan and lease originations of $1.1 billion, an increase of 44% from a year ago.

• Held for investment loan growth of $333 million for the third quarter, an increase of $1.8 billion, or 39% from a year ago.

• The Company’s return on average assets for the quarter was 1.3% and its return on average tangible common equity for the quarter was 19.5%.

The Company finished the quarter with consolidated assets totaling $11.2 billion, an increase of $1.1 billion, or 10%, compared to the prior quarter, and an increase of $4.0 billion, or 55%, compared to a year ago.

“Our third quarter financial performance showcases the strong credit discipline and growing earnings power of our franchise,” said Steven Sugarman, Chairman and Chief Executive Officer of Banc of California. “We remain focused on ensuring that as we grow, we maintain the controls, culture and values that are making Banc of California great. We continue to see meaningful opportunities to capture market share by empowering California through its diverse businesses, entrepreneurs and communities.”

During the quarter, Banc of California grew its recurring net interest income by $5.9 million, or 7% from the prior quarter, grew total deposits by $1.1 billion, increased held for investment loans by $333 million, or 5% from the prior quarter and reduced FHLB borrowings by $160 million or 17% from the prior quarter.

“We continue to see growth in assets, deposits and loans across our business units. Our consistent progress has now resulted in our franchise meeting or exceeding all of our stated financial targets for 2016, including return on tangible common equity over 15% and return on assets over 1%,” said Francisco Turner, Chief Strategy Officer of Banc of California.

“We have built and strengthened our balance sheet and liquidity position, supported by the strong deposit inflows we continued to experience in the third quarter,” said James McKinney, Chief Financial Officer of Banc of California. “We maintain a strong capital position and have implemented numerous sources of contingent capital including our increased holding company line of credit. As of the end of the third quarter, we now maintain over $7 billion of contingent liquidity to support Banc of California’s balance sheet and to adequately serve all of the diverse needs of our clients. I could not be prouder of the success we have made in ensuring a strong and durable balance sheet with the best possible liquidity to withstand diverse market conditions.”

The Company also announced that it has accelerated the date of its conference call to discuss third quarter financial results to Wednesday, October 19, 2016 at 7:00 a.m. Pacific Time (PT). Interested parties are welcome to attend the conference call by dialing 888-317-6003, and referencing event code 8186667. 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

-2-

Banc of California, Inc.

Consolidated Statements of Financial Condition

(Dollars in thousands)

(Unaudited)

	September 30,			June 30,			March 31,			December 31,			September 30,
	2016			2016			2016			2015			2015
ASSETS
Cash and cash equivalents	$	372,603		$	271,732		$	215,012		$	156,124		$	378,963
Time deposits in financial institutions		1,500			1,500			1,500			1,500			1,900
Securities available for sale		1,941,588			1,302,785			1,663,711			833,596			693,219
Securities held to maturity		962,315			962,282			962,262			962,203			529,532
Loans held for sale		846,844			893,782			863,944			668,841			596,565
Loans and leases receivable		6,568,791			6,236,115			5,463,068			5,184,394			4,730,077
Allowance for loan and lease losses		(40,233	)		(37,483	)		(35,845	)		(35,533	)		(34,774	)
Federal Home Loan Bank and other bank stock		69,190			81,115			61,146			59,069			40,643
Servicing rights, net		63,843			53,650			49,406			50,727			41,646
Other real estate owned, net		275			429			325			1,097			34
Premises and equipment, net		133,228			120,755			114,668			111,539			34,689
Goodwill		39,244			39,244			39,244			39,244			39,244
Other intangible assets, net		15,335			16,514			17,836			19,158			20,504
Deferred income tax		408			7,270			7,441			11,341			13,388
Income tax receivable		12,487			5,904			—			604			2,649
Bank-owned life insurance investment		101,909			101,314			100,734			100,171			99,570
Other assets		127,077			100,754			92,520			71,480			68,961
Total assets	$	11,216,404		$	10,157,662		$	9,616,972		$	8,235,555		$	7,256,810
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-bearing deposits	$	1,267,363		$	1,093,686		$	1,398,728		$	1,121,124		$	1,011,169
Interest-bearing deposits		7,810,956			6,835,270			5,438,873			5,181,961			4,410,821
Total deposits		9,078,319			7,928,956			6,837,601			6,303,085			5,421,990
Advances from Federal Home Loan Bank		770,000			930,000			1,195,000			930,000			830,000
Securities sold under repurchase agreements		—			—			257,100			—			—
Other borrowings		49,903			—			—			—			—
Notes payable, net		176,579			177,743			260,896			261,876			262,779
Reserve for loss on repurchased loans		11,369			10,438			9,781			9,700			9,098
Income taxes payable		908			—			12,303			1,241			5,939
Accrued expenses and other liabilities		157,902			170,641			176,761			77,248			83,470
Total liabilities		10,244,980			9,217,778			8,749,442			7,583,150			6,613,276
Commitments and contingent liabilities
Preferred stock, Series A, non-cumulative perpetual		—			—			31,934			31,934			31,934
Preferred stock, Series B, non-cumulative perpetual		—			—			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			110,873
Preferred stock, Series E, 7.00% non-cumulative perpetual		120,255			120,255			120,258			—			—
Common stock		536			510			454			395			393
Common stock, class B non-voting non-convertible		2			2			1			1			—
Additional paid-in capital		611,069			608,303			509,123			429,790			427,599
Retained earnings		112,751			88,385			73,179			63,534			52,277
Treasury stock		(29,070	)		(29,070	)		(29,070	)		(29,070	)		(29,070	)
Accumulated other comprehensive income/(loss), net		7,065			2,683			2,835			(2,995	)		1,585
Total stockholders’ equity		971,424			939,884			867,530			652,405			643,534
Total liabilities and stockholders’ equity	$	11,216,404		$	10,157,662		$	9,616,972		$	8,235,555		$	7,256,810

1

Banc of California, Inc.

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended														Nine Months Ended
	September 30,			June 30,			March 31,			December 31,		September 30,			September 30,			September 30,
	2016			2016			2016			2015		2015			2016			2015
Interest and dividend income
Loans, including fees	$	80,370		$	73,743		$	67,144		$	62,248	$	60,454		$	221,257		$	179,308
Securities		19,934			19,393			16,047			11,163		5,054			55,374			9,100
Dividends and other interest-earning assets		1,931			1,504			1,049			788		1,007			4,484			3,731
Total interest and dividend income		102,235			94,640			84,240			74,199		66,515			281,115			192,139
Interest expense
Deposits		11,224			8,385			8,107			6,862		6,395			27,716			18,921
Federal Home Loan Bank advances		1,413			1,966			1,262			890		587			4,641			1,230
Securities sold under repurchase agreements		48			389			160			15		3			597			3
Notes payable and other interest-bearing liabilities		2,589			2,863			4,294			4,366		3,980			9,746			10,334
Total interest expense		15,274			13,603			13,823			12,133		10,965			42,700			30,488
Net interest income		86,961			81,037			70,417			62,066		55,550			238,415			161,651
Provision for loan and lease losses		2,592			1,769			321			1,260		735			4,682			6,209
Net interest income after provision for loan and lease losses		84,369			79,268			70,096			60,806		54,815			233,733			155,442
Noninterest income
Customer service fees		1,566			1,173			848			957		1,118			3,587			3,100
Loan servicing (loss) income		2,096			(3,347	)		(5,288	)		3,663		(2,254	)		(6,539	)		(689	)
Net gain on sale of securities available for sale		487			12,824			16,789			1,510		1,750			30,100			1,748
Net gain on sale of loans		11,063			2,147			2,195			15,164		9,737			15,405			22,047
Mortgage banking income		50,159			43,795			33,684			30,334		37,015			127,638			114,351
Advisory service fees		—			510			997			1,942		2,294			1,507			7,926
Loan brokerage income		1,384			759			874			678		660			3,017			2,462
Gain on sale of building		—			—			—			—		—			—			9,919
All other income		7,875			7,743			1,860			2,571		407			17,478			2,536
Total noninterest income		74,630			65,604			51,959			56,819		50,727			192,193			163,400
Noninterest expense
Salaries and employee benefits		68,033			61,022			57,183			54,008		53,215			186,238			159,106
Occupancy and equipment		12,728			11,943			11,740			11,200		10,109			36,411			30,205
Professional fees		6,732			6,763			6,212			4,808		5,261			19,707			15,385
Data processing		2,837			2,838			2,194			2,104		2,170			7,869			6,080
Loss on investments in alternative energy partnerships, net		17,660			—			—			—		—			17,660			—
Amortization of intangible assets		1,179			1,322			1,322			1,346		1,401			3,823			4,490
All other expenses		15,093			16,187			10,449			13,193		9,587			41,729			30,276
Total noninterest expense		124,262			100,075			89,100			86,659		81,743			313,437			245,542
Income before income taxes		34,737			44,797			32,955			30,966		23,799			112,489			73,300
Income tax (benefit) expense		(1,200	)		18,269			13,268			11,928		9,263			30,337			30,266
Net income		35,937			26,528			19,687			19,038		14,536			82,152			43,034
Preferred stock dividends		5,112			5,114			4,575			3,030		3,040			14,801			6,793
Net income available to common stockholders	$	30,825		$	21,414		$	15,112		$	16,008	$	11,496		$	67,351		$	36,241
Basic earnings per total common share	$	0.60		$	0.44		$	0.36		$	0.40	$	0.29		$	1.42		$	0.95
Diluted earnings per total common share	$	0.59		$	0.43		$	0.36		$	0.39	$	0.29		$	1.40		$	0.93

2

Banc of California, Inc.

Selected Financial Data

(Dollars in thousands)

(Unaudited)

	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2016			2016			2016			2015			2015			2016			2015
Average balances
Total assets	$	10,860,257		$	10,061,237		$	8,833,176		$	7,590,781		$	6,681,590		$	9,921,657		$	6,291,536
Total gross loans and leases		7,245,472			6,663,340			5,995,436			5,531,539			5,271,293			6,636,978			5,222,290
Investment Securities		2,776,304			2,696,524			2,128,882			1,506,626			828,326			2,534,788			530,124
Total interest earning assets		10,432,247			9,619,937			8,344,167			7,264,341			6,449,862			9,468,979			6,046,305
Total interest-bearing deposits		7,164,061			5,696,893			5,332,032			4,685,145			4,314,330			6,068,343			4,160,352
Total borrowings		1,297,382			2,067,234			1,309,710			1,141,554			745,959			1,557,157			655,726
Total interest bearing liabilities		8,461,443			7,764,127			6,641,742			5,826,699			5,060,289			7,625,500			4,816,078
Total stockholders’ equity		968,684			898,164			762,923			654,106			645,713			876,922			598,335
Profitability and other ratios
Return on average assets (1)		1.32	%		1.06	%		0.90	%		1.00	%		0.86	%		1.11	%		0.91	%
Return on average equity(1)		14.76	%		11.88	%		10.38	%		11.55	%		8.93	%		12.51	%		9.62	%
Return on average tangible common equity(2)		19.51	%		15.65	%		14.46	%		16.57	%		12.25	%		16.84	%		13.40	%
Dividend payout ratio(3)		20.00	%		27.27	%		33.33	%		30.00	%		41.38	%		25.35	%		37.89	%
Net interest spread		3.18	%		3.26	%		3.22	%		3.22	%		3.23	%		3.22	%		3.40	%
Net interest margin (1)		3.32	%		3.39	%		3.39	%		3.39	%		3.42	%		3.36	%		3.57	%
Noninterest income to total revenue(4)		46.18	%		44.74	%		42.46	%		47.79	%		47.73	%		44.63	%		50.27	%
Noninterest income to average total assets (1)		2.73	%		2.62	%		2.37	%		2.97	%		3.01	%		2.59	%		3.47	%
Noninterest expense to average total assets (1)		4.55	%		4.00	%		4.06	%		4.53	%		4.85	%		4.22	%		5.22	%
Efficiency ratio (5)		76.90	%		68.24	%		72.81	%		72.89	%		76.92	%		72.79	%		75.54	%
Adjusted efficiency ratio for including the pre-tax effect of investments in alternative energy partnerships(2) , (5)		62.38	%		68.24	%		72.81	%		72.89	%		76.92	%		67.23	%		75.54	%
Average held for investment loans and leases to average deposits		75.92	%		82.88	%		79.76	%		86.88	%		86.03	%		79.27	%		82.63	%
Average investment securities to average total assets		25.56	%		26.80	%		24.10	%		19.85	%		12.40	%		25.55	%		8.43	%
Average stockholders’ equity to average total assets		8.92	%		8.93	%		8.64	%		8.62	%		9.66	%		8.84	%		9.51	%
Allowance for loan and lease losses (ALLL)
Balance at beginning of period	$	37,483		$	35,845		$	35,533		$	34,774		$	34,787		$	35,533		$	29,480
Loans and leases charged off		(393	)		(772	)		(102	)		(718	)		(788	)		(1,267	)		(1,224	)
Recoveries		551			641			93			217			40			1,285			309
Provision for loan and lease losses		2,592			1,769			321			1,260			735			4,682			6,209
Balance at end of period	$	40,233		$	37,483		$	35,845		$	35,533		$	34,774		$	40,233		$	34,774
Annualized net loan charge-offs to average total gross loans held for investment		-0.01	%		0.01	%		0.00	%		0.04	%		0.07	%		-0.01	%		0.03	%
Reserve for loss on repurchased loans
Balance at beginning of period	$	10,438		$	9,781		$	9,700		$	9,098		$	9,411		$	9,700		$	8,303
Provision for loan repurchases		1,241			851			379			735			716			2,471			3,617
Change in estimates		—			—			—			846			—			—			—
Utilization of reserve for loan repurchases		(310	)		(194	)		(298	)		(979	)		(1,029	)		(802	)		(2,822	)
Balance at end of period	$	11,369		$	10,438		$	9,781		$	9,700		$	9,098		$	11,369		$	9,098

(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.

3

Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

	September 30,			June 30,			March 31,			December 31,			September 30,
	2016			2016			2016			2015			2015
Asset quality information and ratios
30 to 89 days delinquent, excluding PCI loans	$	39,054		$	50,494		$	36,022		$	39,946		$	48,550
90+ days delinquent, excluding PCI loans		22,827			28,675			27,469			23,338			23,725
Total delinquent loans, excluding PCI loans		61,881			79,169			63,491			63,284			72,275
PCI loans, 30 to 89 days delinquent		39,113			48,255			44,191			40,291			17,593
PCI loans, 90+ days delinquent		6,145			8,952			9,806			6,894			6,223
Total delinquent PCI loans		45,258			57,207			53,997			47,185			23,816
Total delinquent loans	$	107,139		$	136,376		$	117,488		$	110,469		$	96,091
Total delinquent non-PCI loans to total non-PCI loans		1.04	%		1.44	%		1.33	%		1.42	%		1.66	%
Total delinquent loans to gross loans		1.63	%		2.19	%		2.15	%		2.13	%		2.03	%
Non-performing loans, excluding PCI loans	$	35,223		$	45,012		$	44,216		$	45,129		$	45,188
90+ days delinquent and still accruing loans, excluding PCI loans		—			—			—			—			—
Other real estate owned		275			429			325			1,097			34
Non-performing assets	$	35,498		$	45,441		$	44,541		$	46,226		$	45,222
ALLL to non-performing loans		114.22	%		83.27	%		81.07	%		78.74	%		76.95	%
Non-performing loans to gross loans		0.54	%		0.72	%		0.81	%		0.87	%		0.96	%
Non-performing assets to total assets		0.32	%		0.45	%		0.46	%		0.56	%		0.62	%
Troubled Debt Restructings (TDRs)
Performing TDRs	$	11,160		$	14,450		$	15,128		$	7,842		$	9,378
Non-performing TDRs		520			2,864			2,545			1,970			2,017
Total TDRs	$	11,680		$	17,314		$	17,673		$	9,812		$	11,395

4

Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

	September 30,			June 30,			March 31,			December 31,			September 30,
	2016			2016			2016			2015			2015
Loan and lease breakdown by ALLL evaluation type
Originated loans and leases
Individually evaluated for impairment	$	22,306		$	25,661		$	26,565		$	30,654		$	31,008
Collectively evaluated for impairment		4,789,155			4,254,975			3,484,995			3,117,528			2,776,601
Acquired loans not impaired at acquisition
Individually evaluated for impairment		3,397			3,470			3,530			3,629			1,704
Collectively evaluated for impairment		958,135			1,022,696			1,079,711			1,124,874			1,174,573
Seasoned SFR mortgage loan pools - non-impaired
Individually evaluated for impairment		6,581			9,717			9,287			—			—
Collectively evaluated for impairment		146,850			168,352			175,004			194,978			373,634
Acquired with deteriorated credit quality		642,367			751,244			683,976			712,731			372,557
Total loans	$	6,568,791		$	6,236,115		$	5,463,068		$	5,184,394		$	4,730,077
ALLL breakdown
Originated loans and leases
Individually evaluated for impairment	$	137		$	215		$	365		$	369		$	512
Collectively evaluated for impairment		37,858			34,575			32,202			32,713			31,419
Acquired loans not impaired at acquisition
Individually evaluated for impairment		—			—			—			—			—
Collectively evaluated for impairment		1,606			1,458			2,061			2,245			2,637
Seasoned SFR mortgage loan pools - non-impaired
Individually evaluated for impairment		528			1,131			1,011			—			—
Collectively evaluated for impairment		—			—			—			—			—
Acquired with deteriorated credit quality		104			104			206			206			206
Total ALLL	$	40,233		$	37,483		$	35,845		$	35,533		$	34,774
Discount on Purchased/Acquired Loans
Acquired loans not impaired at acquisition	$	18,400		$	20,136		$	20,781		$	21,366		$	21,759
Seasoned SFR mortgage loan pools - non-impaired		9,789			11,304			11,862			12,545			27,699
Acquired with deteriorated credit quality		57,780			76,505			66,573			68,372			41,280
Total Discount	$	85,969		$	107,945		$	99,216		$	102,283		$	90,738
Ratios
To originated loans and leases:
Individually evaluated for impairment		0.61	%		0.84	%		1.37	%		1.20	%		1.65	%
Collectively evaluated for impairment		0.79	%		0.81	%		0.92	%		1.05	%		1.13	%
Total ALLL		0.79	%		0.81	%		0.93	%		1.05	%		1.14	%
To originated loans and leases and acquired loans not impaired at acquisition:
Individually evaluated for impairment		0.53	%		0.74	%		1.21	%		1.08	%		1.57	%
Collectively evaluated for impairment		0.69	%		0.68	%		0.75	%		0.82	%		0.86	%
Total ALLL		0.69	%		0.68	%		0.75	%		0.83	%		0.87	%
Total ALLL and discount(1)		1.00	%		1.06	%		1.21	%		1.33	%		1.41	%
To total loans and leases:
Individually evaluated for impairment		2.06	%		3.46	%		3.49	%		1.08	%		1.57	%
Collectively evaluated for impairment		0.67	%		0.66	%		0.72	%		0.79	%		0.79	%
Total ALLL		0.61	%		0.60	%		0.66	%		0.69	%		0.74	%
Total ALLL and discount(1)		1.92	%		2.33	%		2.47	%		2.66	%		2.65	%

(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)

	September 30,			June 30,			March 31,			December 31,			September 30,
	2016			2016			2016			2015			2015
Composition of held for investment loans and leases
Commercial real estate	$	721,838		$	725,107		$	713,693		$	727,707		$	690,862
Multi-family		1,199,207			1,147,597			1,021,097			904,300			823,415
Construction		99,086			86,852			68,241			55,289			39,475
Commercial and industrial		1,531,041			1,306,866			983,961			876,999			822,690
SBA		67,737			65,477			71,640			57,706			52,985
Lease financing		234,540			228,663			212,836			192,424			162,504
Total commercial loans		3,853,449			3,560,562			3,071,468			2,814,425			2,591,931
Single family residential mortgage		2,601,375			2,555,344			2,282,445			2,255,584			2,013,450
Other consumer		113,967			120,209			109,155			114,385			124,696
Total consumer loans		2,715,342			2,675,553			2,391,600			2,369,969			2,138,146
Total gross loans and leases	$	6,568,791		$	6,236,115		$	5,463,068		$	5,184,394		$	4,730,077
Composition percentage of held for investment loans and leases
Commercial real estate		11.0	%		11.6	%		13.1	%		14.0	%		14.6	%
Multi-family		18.3	%		18.4	%		18.7	%		17.4	%		17.4	%
Construction		1.5	%		1.4	%		1.2	%		1.1	%		0.8	%
Commercial and industrial		23.3	%		21.0	%		18.0	%		16.9	%		17.4	%
SBA		1.0	%		1.0	%		1.3	%		1.1	%		1.1	%
Lease financing		3.6	%		3.7	%		3.9	%		3.7	%		3.4	%
Total commercial loans		58.7	%		57.1	%		56.2	%		54.2	%		54.7	%
Single family residential mortgage		39.6	%		41.0	%		41.8	%		43.6	%		42.7	%
Other consumer		1.7	%		1.9	%		2.0	%		2.2	%		2.6	%
Total consumer loans		41.3	%		42.9	%		43.8	%		45.8	%		45.3	%
Total gross loans and leases		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Composition of deposits
Noninterest-bearing checking	$	1,267,363		$	1,093,686		$	1,398,728		$	1,121,124		$	1,011,169
Interest-bearing checking		2,369,332			2,053,656			2,052,507			1,697,055			1,458,208
Money market		2,900,248			2,343,561			1,534,492			1,479,931			1,238,180
Savings		880,712			909,242			844,177			823,618			814,230
Certificates of deposit		1,660,664			1,528,811			1,007,697			1,181,357			900,203
Total deposits	$	9,078,319		$	7,928,956		$	6,837,601		$	6,303,085		$	5,421,990
Composition percentage of deposits
Noninterest-bearing checking		14.0	%		13.8	%		20.5	%		17.8	%		18.6	%
Interest-bearing checking		26.1	%		25.9	%		30.0	%		26.8	%		26.9	%
Money market		31.9	%		29.5	%		22.4	%		23.5	%		22.8	%
Savings		9.7	%		11.5	%		12.3	%		13.1	%		15.0	%
Certificates of deposit		18.3	%		19.3	%		14.8	%		18.8	%		16.7	%
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
	September 30, 2016								June 30, 2016								March 31, 2016
	Average					Yield			Average					Yield			Average					Yield
	Balance			Interest		/ Cost			Balance			Interest		/ Cost			Balance			Interest		/ Cost
Interest earning assets
Loans held for sale and SFR mortgage	$	2,618,879		$	24,365		3.70	%	$	2,428,168		$	22,488		3.72	%	$	2,144,834		$	19,808		3.71	%
Seasoned SFR mortgage loan pools		907,387			11,924		5.23	%		878,068			12,404		5.68	%		876,142			12,710		5.83	%
Commercial real estate, multi-family, and construction		2,033,718			23,097		4.52	%		1,907,649			21,049		4.44	%		1,760,646			19,816		4.53	%
Commercial and industrial, SBA, and lease financing		1,576,379			19,734		4.98	%		1,343,961			16,642		4.98	%		1,105,971			13,665		4.97	%
Other consumer		109,109			1,250		4.56	%		105,494			1,160		4.42	%		107,843			1,145		4.27	%
Gross loans and leases		7,245,472			80,370		4.41	%		6,663,340			73,743		4.45	%		5,995,436			67,144		4.50	%
Securities		2,776,304			19,934		2.86	%		2,696,524			19,393		2.89	%		2,128,882			16,047		3.03	%
Other interest-earning assets		410,471			1,931		1.87	%		260,073			1,504		2.33	%		219,849			1,049		1.92	%
Total interest-earning assets		10,432,247			102,235		3.90	%		9,619,937			94,640		3.96	%		8,344,167			84,240		4.06	%
Allowance for loan and lease losses		(38,258	)							(37,637	)							(35,575	)
BOLI and non-interest earning assets		466,268								478,937								524,584
Total assets	$	10,860,257							$	10,061,237							$	8,833,176
Interest-bearing liabilities
Savings	$	887,973		$	1,704		0.76	%	$	866,051		$	1,603		0.74	%	$	834,965		$	1,572		0.76	%
Interest-bearing checking		2,300,128			3,972		0.69	%		1,981,702			3,135		0.64	%		1,900,834			3,244		0.69	%
Money market		2,427,356			3,226		0.53	%		1,672,662			1,962		0.47	%		1,437,332			1,679		0.47	%
Certificates of deposit		1,548,604			2,322		0.60	%		1,176,478			1,685		0.58	%		1,158,901			1,612		0.56	%
Total interest-bearing deposits		7,164,061			11,224		0.62	%		5,696,893			8,385		0.59	%		5,332,032			8,107		0.61	%
FHLB advances		1,104,663			1,413		0.51	%		1,663,791			1,966		0.48	%		955,659			1,262		0.53	%
Securities sold under repurchase agreements		12,539			48		1.52	%		210,299			389		0.74	%		90,395			160		0.71	%
Long-term debt and other interest-bearing liabilities		180,180			2,589		5.72	%		193,144			2,863		5.96	%		263,656			4,294		6.55	%
Total interest-bearing liabilities		8,461,443			15,274		0.72	%		7,764,127			13,603		0.70	%		6,641,742			13,823		0.84	%
Noninterest-bearing deposits		1,178,849								1,205,987								1,230,991
Non-interest-bearing liabilities		251,281								192,959								197,520
Total liabilities		9,891,573								9,163,073								8,070,253
Total stockholders’ equity		968,684								898,164								762,923
Total liabilities and stockholders’ equity	$	10,860,257							$	10,061,237							$	8,833,176
Net interest income/spread				$	86,961		3.18	%				$	81,037		3.26	%				$	70,417		3.22	%
Net interest margin							3.32	%							3.39	%							3.39	%
Ratio of interest-earning assets to interest-bearing liabilities		123.29	%							123.90	%							125.63	%
Total deposits	$	8,342,910		$	11,224		0.54	%	$	6,902,880		$	8,385		0.49	%	$	6,563,023		$	8,107		0.50	%
Total funding(1)	$	9,640,292		$	15,274		0.63	%	$	8,970,114		$	13,603		0.61	%	$	7,872,733		$	13,823		0.71	%

(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.

7

Banc of California, Inc.

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

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	December 31, 2015								September 30, 2015
	Average					Yield			Average					Yield
	Balance			Interest		/ Cost			Balance			Interest		/ Cost
Interest earning assets
Loans held for sale and SFR mortgage	$	1,903,331		$	17,584		3.67	%	$	1,966,373		$	18,123		3.66	%
Seasoned SFR mortgage loan pools		858,601			12,098		5.59	%		689,666			10,901		6.27	%
Commercial real estate, multi-family, and construction		1,638,329			19,006		4.60	%		1,568,975			17,643		4.46	%
Commercial and industrial, SBA, and lease financing		1,020,306			12,754		4.96	%		914,811			12,125		5.26	%
Other consumer		110,972			806		2.88	%		131,468			1,662		5.02	%
Gross loans and leases		5,531,539			62,248		4.46	%		5,271,293			60,454		4.55	%
Securities		1,506,626			11,163		2.94	%		828,326			5,054		2.42	%
Other interest-earning assets		226,176			788		1.38	%		350,243			1,007		1.14	%
Total interest-earning assets		7,264,341			74,199		4.05	%		6,449,862			66,515		4.09	%
Allowance for loan and lease losses		(35,894	)							(34,810	)
BOLI and non-interest earning assets		362,334								266,538
Total assets	$	7,590,781							$	6,681,590
Interest-bearing liabilities
Savings	$	805,445		$	1,538		0.76	%	$	832,006		$	1,575		0.75	%
Interest-bearing checking		1,475,461			2,663		0.72	%		1,282,066			2,273		0.70	%
Money market		1,343,683			1,267		0.37	%		1,294,554			1,337		0.41	%
Certificates of deposit		1,060,556			1,394		0.52	%		905,704			1,210		0.53	%
Total interest-bearing deposits		4,685,145			6,862		0.58	%		4,314,330			6,395		0.59	%
FHLB advances		869,457			890		0.41	%		476,848			587		0.49	%
Securities sold under repurchase agreements		7,010			15		0.85	%		2,681			3		0.44	%
Long-term debt and other interest-bearing liabilities		265,087			4,366		6.53	%		266,430			3,980		5.93	%
Total interest-bearing liabilities		5,826,699			12,133		0.83	%		5,060,289			10,965		0.86	%
Noninterest-bearing deposits		1,037,966								916,670
Non-interest-bearing liabilities		72,010								58,918
Total liabilities		6,936,675								6,035,877
Total stockholders’ equity		654,106								645,713
Total liabilities and stockholders’ equity	$	7,590,781							$	6,681,590
Net interest income/spread				$	62,066		3.22	%				$	55,550		3.23	%
Net interest margin							3.39	%							3.42	%
Ratio of interest-earning assets to interest-bearing liabilities		124.67	%							127.46	%
Total deposits	$	5,723,111		$	6,862		0.48	%	$	5,231,000		$	6,395		0.49	%
Total funding(1)	$	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.

8

Banc of California, Inc.

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

(Dollars in thousands)

(Unaudited)

	Nine Months Ended
	September 30, 2016								September 30, 2015
	Average					Yield			Average					Yield
	Balance			Interest		/ Cost			Balance			Interest		/ Cost
Interest earning assets
Loans held for sale and SFR mortgage	$	2,398,101		$	66,661		3.71	%	$	1,931,759		$	54,584		3.78	%
Seasoned SFR mortgage loan pools		887,273			37,037		5.58	%		624,642			30,004		6.42	%
Commercial real estate, multi-family, and construction		1,901,157			63,962		4.49	%		1,790,108			61,703		4.61	%
Commercial and industrial, SBA, and lease financing		1,342,959			50,041		4.98	%		729,529			28,234		5.17	%
Other consumer		107,488			3,556		4.42	%		146,252			4,783		4.37	%
Gross loans and leases		6,636,978			221,257		4.45	%		5,222,290			179,308		4.59	%
Securities		2,534,788			55,374		2.92	%		530,124			9,100		2.30	%
Other interest-earning assets		297,213			4,484		2.02	%		293,891			3,731		1.70	%
Total interest-earning assets		9,468,979			281,115		3.97	%		6,046,305			192,139		4.25	%
Allowance for loan and lease losses		(37,161	)							(31,312	)
BOLI and non-interest earning assets		489,839								276,543
Total assets	$	9,921,657							$	6,291,536
Interest-bearing liabilities
Savings	$	863,088		$	4,878		0.75	%	$	881,273		$	4,929		0.75	%
Interest-bearing checking		2,061,761			10,352		0.67	%		1,113,267			6,309		0.76	%
Money market		1,847,906			6,867		0.50	%		1,177,538			3,324		0.38	%
Certificates of deposit		1,295,588			5,619		0.58	%		988,274			4,359		0.59	%
Total interest-bearing deposits		6,068,343			27,716		0.61	%		4,160,352			18,921		0.61	%
FHLB advances		1,240,872			4,641		0.50	%		446,571			1,230		0.37	%
Securities sold under repurchase agreements		104,076			597		0.77	%		903			3		0.44	%
Long-term debt and other interest-bearing liabilities		212,209			9,746		6.13	%		208,252			10,334		6.63	%
Total interest-bearing liabilities		7,625,500			42,700		0.75	%		4,816,078			30,488		0.85	%
Noninterest-bearing deposits		1,205,179								820,385
Non-interest-bearing liabilities		214,056								56,738
Total liabilities		9,044,735								5,693,201
Total stockholders’ equity		876,922								598,335
Total liabilities and stockholders’ equity	$	9,921,657							$	6,291,536
Net interest income/spread				$	238,415		3.22	%				$	161,651		3.40	%
Net interest margin							3.36	%							3.57	%
Ratio of interest-earning assets to interest-bearing liabilities		124.18	%							125.54	%
Total deposits	$	7,273,522		$	27,716		0.51	%	$	4,980,737		$	18,921		0.51	%
Total funding(1)	$	8,830,679		$	42,700		0.65	%	$	5,636,463		$	30,488		0.72	%

(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.

9

Banc of California, Inc.

Capital Ratios

(Unaudited)

	September 30,			June 30,			March 31,			December 31,			September 30,
	2016			2016			2016			2015			2015
Capital Ratios
Banc of California, Inc.
Total risk-based capital ratio		12.79	%		13.45	%		13.59	%		11.18	%		12.56	%
Tier 1 risk-based capital ratio		12.54	%		13.14	%		13.17	%		10.71	%		12.06	%
Common equity tier 1 capital ratio		8.85	%		9.16	%		8.14	%		7.36	%		8.19	%
Tier 1 leverage ratio		8.47	%		8.87	%		9.27	%		8.07	%		8.97	%
Banc of California, NA
Total risk-based capital ratio		14.38	%		14.96	%		14.03	%		13.45	%		14.93	%
Tier 1 risk-based capital ratio		13.83	%		14.38	%		13.42	%		12.79	%		14.19	%
Common equity tier 1 capital ratio		13.83	%		14.38	%		13.42	%		12.79	%		14.19	%
Tier 1 leverage ratio		9.31	%		9.70	%		9.44	%		9.64	%		10.53	%

10

Banc of California, Inc.

Non-GAAP Measures

(Dollars in thousands, except per share data)

(Unaudited)

Non-GAAP performance measure:

Tangible equity to tangible assets, tangible common equity to tangible assets ratios, return on average tangible common equity, and adjusted efficiency ratio 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. Adjusted efficiency ratio is calucated by subtracting loss on investments in alternative energy partnerships from noninterest expense and adding total pretax return, which includes the loss on investments in alternative energy partnerships, from investments in alternative energy partnerships to noninterest income. Management believes the presentation of these financial measures excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital and financial 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:

	September 30,			June 30,			March 31,			December 31,			September 30,
	2016			2016			2016			2015			2015
Tangible common equity to tangible assets ratio
Total assets	$	11,216,404		$	10,157,662		$	9,616,972		$	8,235,555		$	7,256,810
Less goodwill		(39,244	)		(39,244	)		(39,244	)		(39,244	)		(39,244	)
Less other intangible assets		(15,335	)		(16,514	)		(17,836	)		(19,158	)		(20,504	)
Tangible assets	$	11,161,825		$	10,101,904		$	9,559,892		$	8,177,153		$	7,197,062
Total stockholders’ equity	$	971,424		$	939,884		$	867,530		$	652,405		$	643,534
Less goodwill		(39,244	)		(39,244	)		(39,244	)		(39,244	)		(39,244	)
Less other intangible assets		(15,335	)		(16,514	)		(17,836	)		(19,158	)		(20,504	)
Tangible equity		916,845			884,126			810,450			594,003			583,786
Less preferred stock		(269,071	)		(269,071	)		(311,008	)		(190,750	)		(190,750	)
Tangible common equity	$	647,774		$	615,055		$	499,442		$	403,253		$	393,036
Total stockholders’ equity to total assets		8.66	%		9.25	%		9.02	%		7.92	%		8.87	%
Tangible equity to tangible assets		8.21	%		8.75	%		8.48	%		7.26	%		8.11	%
Tangible common equity to tangible assets		5.80	%		6.09	%		5.22	%		4.93	%		5.46	%
Common stock outstanding		49,531,321			49,478,348			43,907,587			38,002,267			37,751,445
Class B non-voting non-convertible common stock outstanding		201,922			161,841			91,066			37,355			—
Total common stock outstanding		49,733,243			49,640,189			43,998,653			38,039,622			37,751,445
Minimum number of shares issuable under purchase contracts(1)		188,742			218,928			253,155			601,299			828,246
Total common stock outstanding and shares issuable under purchase contracts		49,921,985			49,859,117			44,251,808			38,640,921			38,579,691
(1)    Purchase contracts relating to the tangible equity units
Tangible common equity per common stock	$	13.02		$	12.39		$	11.35		$	10.60		$	10.41
Book value per common stock	$	14.12		$	13.51		$	12.65		$	12.14		$	11.99
Tangible common equity per common stock and shares issuable under purchase contracts	$	12.98		$	12.34		$	11.29		$	10.44		$	10.19
Book value per common stock and shares issuable under purchase contracts	$	14.07		$	13.45		$	12.58		$	11.95		$	11.74

11

Banc of California, Inc.

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2016			2016			2016			2015			2015			2016			2015
Return on tangible common equity
Average total stockholders’ equity	$	968,684		$	898,164		$	762,923		$	654,106		$	645,713		$	876,922		$	598,335
Less average preferred stock		(269,071	)		(269,073	)		(260,959	)		(190,750	)		(190,750	)		(266,377	)		(151,360	)
Less average goodwill		(39,244	)		(39,244	)		(39,244	)		(39,244	)		(31,674	)		(39,244	)		(31,619	)
Less average other intangible assets		(16,039	)		(17,299	)		(18,601	)		(19,877	)		(21,320	)		(17,308	)		(23,012	)
Average tangible common equity	$	644,330		$	572,548		$	444,119		$	404,235		$	401,969		$	553,993		$	392,344
Net income	$	35,937		$	26,528		$	19,687		$	19,038		$	14,536		$	82,152		$	43,034
Less preferred stock dividends		(5,112	)		(5,114	)		(4,575	)		(3,030	)		(3,040	)		(14,801	)		(6,793	)
Add amortization of intangible assets		1,179			1,322			1,322			1,346			1,401			3,823			4,490
Add impairment on intangible assets		—			—			—			—			—			—			258
Less tax effect on amortization and impairment of intangible assets(1)		(413	)		(463	)		(463	)		(471	)		(490	)		(1,338	)		(1,661	)
Net income available to common stockholders	$	31,591		$	22,273		$	15,971		$	16,883		$	12,407		$	69,836		$	39,328
Return on average equity		14.76	%		11.88	%		10.38	%		11.55	%		8.93	%		12.51	%		9.62	%
Return on average tangible common equity		19.51	%		15.65	%		14.46	%		16.57	%		12.25	%		16.84	%		13.40	%
(1)    Utilized a 35% effective tax rate
	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2016			2016			2016			2015			2015			2016			2015
Adjusted efficiency ratio for including the pre-tax effect of investments in alternative energy partnerships
Noninterest expense	$	124,262		$	100,075		$	89,100		$	86,659		$	81,743		$	313,437		$	245,542
Loss on investments in alternative energy partnerships, net		(17,660	)		—			—			—			—			(17,660	)		—
Adjusted noninterest expense	$	106,602		$	100,075		$	89,100		$	86,659		$	81,743		$	295,777		$	245,542
Net interest income	$	86,961		$	81,037		$	70,417		$	62,066		$	55,550		$	238,415		$	161,651
Noninterest income		74,630			65,604			51,959			56,819			50,727			192,193			163,400
Total revenue		161,591			146,641			122,376			118,885			106,277			430,608			325,051
Tax credit from investments in alternative energy partnerships		19,357			—			—			—			—			19,357			—
Deferred tax expense on investments in alternative energy partnerships		(3,387	)		—			—			—			—			(3,387	)		—
Tax effect on tax credit and deferred tax expense (1)		11,002			—			—			—			—			11,002			—
Loss on investments in alternative energy partnerships, net		(17,660	)		—			—			—			—			(17,660	)		—
Total pre-tax adjustemnts for investments in alternative energy partnerships		9,312			—			—			—			—			9,312			—
Total adjusted revenue	$	170,903		$	146,641		$	122,376		$	118,885		$	106,277		$	439,920		$	325,051
Efficiency ratio		76.90	%		68.24	%		72.81	%		72.89	%		76.92	%		72.79	%		75.54	%
Adjusted efficiency ratio for excluding the effect of investments in alternative energy partnerships		62.38	%		68.24	%		72.81	%		72.89	%		76.92	%		67.23	%		75.54	%
(1)    Utilized a 40.79% effective tax rate