BANC OF CALIFORNIA, INC. - FORM 8-K - EX-99.1

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EX-99.2 - EX-99.2 - BANC OF CALIFORNIA, INC.	d467676dex992.htm
8-K - 8-K - BANC OF CALIFORNIA, INC.	d467676d8k.htm

EXHIBIT 99.1

LOGO

Banc of California Reports Third Quarter 2017 Earnings

SANTA ANA, Calif., (October 26, 2017) – Banc of California, Inc. (NYSE: BANC) today reported net income of $16.9 million, and net income available to common stockholders of $11.8 million, for the third quarter of 2017, resulting in diluted earnings per common share of $0.23 for the quarter. Net income from continuing operations for the quarter was $18.1 million, resulting in diluted earnings per common share from continuing operations of $0.25.

Highlights for the third quarter included:

•

Balance Sheet Re-Mix: Reduced securities by $159 million, driven by sales of $87 million of master limited partnerships (“MLPs”) and $32 million of bank debt. Reduced held for sale loans by $229 million, driven primarily by jumbo portfolio mortgage loan sales and the completed sale of all remaining seasoned SFR mortgage loan pools.

•

Loan Growth: Held for investment loans increased by $271 million, or 5%, during the quarter to $6.2 billion. The Company sold $46 million of loans from held for investment and transferred $88 million of jumbo residential mortgage loans from held for sale to held for investment during the quarter. Excluding these sales and transfers, held for investment loans increased by $229 million, or 4%, from the prior quarter.

•

Commercial loan balances increased by $132 million, or 3%, from the prior quarter, and by $335 million, or 9%, from a year ago.

•

Expense Management: Achieved targeted quarterly, recurring, run-rate expenses of less than $60 million for the quarter, excluding expense related to loss on investments in alternative energy partnerships and non-recurring expenses.

•

Strong Credit: Asset quality remained strong with non-performing assets to total assets of 0.16% at quarter end.

•

Strengthened Capital: Common equity tier 1 capital ratio improved from the prior quarter to 9.91%, the highest level in the past 12 quarters.

•

Bolstered Talent: Key executive hires including John Bogler as Chief Financial Officer, Jason Pendergist as Head of Real Estate Banking, and Rita Dailey as EVP, Head of Deposits & Treasury Management Services.

“Our third quarter results included numerous strategic actions centered on re-mixing the balance sheet and positioning the company with an ever increasing emphasis on building a diversified and strong California commercial banking franchise,” said Doug Bowers, President and Chief Executive Officer of Banc of California. “During the quarter, we continued to de-risk the securities portfolio through selective sales, re-mixed the loan book increasingly toward core lending activities, and saw moderate growth in the held for investment loan portfolio. On the liability side, our focus is on core funding activities as we reduced brokered and other high-rate and high-volatility deposits. Looking forward, we are laser-focused on building and expanding our core deposit capabilities across the organization as core, low cost deposit generation remains our number one priority. Gaining control of our expense base, and reducing costs related to legal and professional fees, settlement, and termination costs is also a high priority. The addition of key senior leaders such as John Bogler, Jason Pendergist, and Rita Dailey are a centerpiece of the plan to help guide Banc of California through this transformation, and we welcome their addition to our team. While we remain in the early innings of this transformation, I continue to see substantial opportunity in front of us, with the size and product set to compete, coupled with a deep and talented employee base, and operating in one of the most attractive markets in the U.S.”

The Company will host a conference call to discuss its third quarter financial results at 7:00 a.m. Pacific Time (PT) on Thursday, October 26, 2017. Interested parties are welcome to attend the conference call by dialing 888-317-6003, and referencing event code 8972485. A live audio webcast will also be available and the webcast link will be posted on the Company’s Investor Relations website at www.bancofcal.com/investor. The slide presentation for the call will also be available on the Company’s Investor Relations website prior to the call.

3 MacArthur Place • Santa Ana, CA 92707 • (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 34 offices in California. The Company has been recognized by Forbes for the second straight year as one of the 100 Best Banks in America for 2017.

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.		Abernathy MacGregor
Timothy Sedabres, (855) 361-2262		Ian Campbell / Joe Hixson, (213) 630-6550 idc@abmac.com / jrh@abmac.com

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Banc of California, Inc.

Consolidated Statements of Financial Condition

(Dollars in thousands)

(Unaudited)


	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
ASSETS
Cash and cash equivalents	$	611,826		$	511,190		$	409,281		$	439,510		$	372,603
Time deposits in financial institutions		1,000			1,000			1,000			1,000			1,500
Securities available-for-sale		2,755,664			2,915,103			2,434,541			2,381,488			1,941,588
Securities held-to-maturity		—			—			863,269			884,234			962,315
Loans held-for-sale		50,130			278,824			228,196			298,018			358,892
Loans and leases receivable		6,226,897			5,956,337			6,105,321			6,034,752			6,568,791
Allowance for loan and lease losses		(45,072	)		(42,385	)		(42,736	)		(40,444	)		(40,233	)
Federal Home Loan Bank and other bank stock		67,063			63,438			63,238			67,842			69,190
Servicing rights, net		40,448			43,834			44,451			39,936			33,064
Other real estate owned, net		3,682			3,267			3,345			2,502			275
Premises and equipment, net		139,326			143,398			146,631			140,917			131,481
Investments in alternative energy partnerships, net		43,817			37,605			47,633			25,639			23,912
Goodwill		37,144			37,144			37,144			37,144			37,144
Other intangible assets, net		10,219			11,135			12,191			13,617			15,335
Deferred income tax, net		23,333			9,499			18,673			9,989			408
Income tax receivable		7,699			14,984			15,973			16,009			12,487
Bank owned life insurance investment		104,292			103,709			103,093			102,512			101,909
Other assets		142,985			113,534			128,036			92,694			79,386
Assets of discontinued operations		59,575			164,152			432,805			482,494			546,357

Total assets	$	10,280,028		$	10,365,768		$	11,052,085		$	11,029,853		$	11,216,404


LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits	$	1,075,782		$	1,138,095		$	1,273,649		$	1,282,629		$	1,267,363
Interest-bearing deposits		6,327,811			6,906,816			7,324,044			7,859,521			7,810,956

Total deposits		7,403,593			8,044,911			8,597,693			9,142,150			9,078,319
Advances from Federal Home Loan Bank		1,470,000			870,000			1,080,000			490,000			770,000
Securities sold under repurchase agreements		36,520			53,242			26,320			—			—
Other borrowings		—			—			67,981			67,922			49,903
Notes payable, net		172,865			172,790			174,090			175,378			176,579
Reserve for loss on repurchased loans		6,173			8,028			8,118			7,974			11,369
Income taxes payable		—			—			618			92			908
Accrued expenses and other liabilities		164,469			193,276			81,208			131,618			132,089
Liabilities of discontinued operations		12,500			17,229			30,309			34,480			25,813

Total liabilities		9,266,120			9,359,476			10,066,337			10,049,614			10,244,980
Commitments and contingent liabilities
Preferred stock		269,071			269,071			269,071			269,071			269,071
Common stock		542			540			537			537			536
Common stock, class B non-voting non-convertible		4			4			3			2			2
Additional paid-in capital		619,849			616,251			614,983			614,226			611,069
Retained earnings		145,420			140,331			139,926			134,515			112,751
Treasury stock		(28,786	)		(28,786	)		(29,070	)		(29,070	)		(29,070	)
Accumulated other comprehensive income/(loss), net		7,808			8,881			(9,702	)		(9,042	)		7,065

Total stockholders’ equity		1,013,908			1,006,292			985,748			980,239			971,424

Total liabilities and stockholders’ equity	$	10,280,028		$	10,365,768		$	11,052,085		$	11,029,853		$	11,216,404

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Banc of California, Inc.

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

(Unaudited)


	Three Months Ended															Nine Months Ended
	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			September 30, 2017			September 30, 2016
Interest and dividend income
Loans, including fees	$	70,208		$	69,661		$	69,507		$	71,613		$	76,257		$	209,376		$	210,255
Securities		24,337			24,996			27,239			24,153			19,934			76,572			55,374
Other interest-earning assets		2,206			1,783			2,096			3,965			1,931			6,085			4,484

Total interest and dividend income		96,751			96,440			98,842			99,731			98,122			292,033			270,113
Interest expense
Deposits		15,468			14,942			13,960			12,504			11,224			44,370			27,716
Federal Home Loan Bank advances		3,352			2,774			1,423			1,076			1,413			7,549			4,641
Securities sold under repurchase agreements		500			180			6			221			48			686			597
Notes payable and other interest-bearing liabilities		2,395			3,044			2,972			2,998			2,589			8,411			9,746

Total interest expense		21,715			20,940			18,361			16,799			15,274			61,016			42,700

Net interest income		75,036			75,500			80,481			82,932			82,848			231,017			227,413
Provision for loan and lease losses		3,561			2,503			2,583			589			2,592			8,647			4,682

Net interest income after provision for loan and lease losses		71,475			72,997			77,898			82,343			80,256			222,370			222,731
Noninterest income
Customer service fees		1,576			1,669			1,623			1,560			1,566			4,868			3,587
Loan servicing income (loss)		553			132			2,756			4,699			74			3,441			(4,066	)
Net gain (loss) on sale of securities available for sale		7,625			1,099			3,356			(695	)		487			12,080			30,100
Net gain on sale of loans		5,735			983			4,019			20,490			11,063			10,737			15,405
Loan brokerage income		—			34			1,027			1,331			1,298			1,061			2,920
Gain on sale of subsidiary and business unit		—			—			—			2,629			—			—			3,694
All other income		2,876			1,790			2,122			2,490			7,542			6,788			14,486

Total noninterest income		18,365			5,707			14,903			32,504			22,030			38,975			66,126
Noninterest expense
Salaries and employee benefits		30,216			33,348			32,443			42,800			37,133			96,007			103,347
Occupancy and equipment		10,085			9,776			10,668			10,012			10,036			30,529			28,034
Professional fees		7,697			11,794			15,073			11,562			6,482			34,564			18,811
Data processing		1,901			2,246			2,179			2,357			2,112			6,326			5,954
Loss on investments in alternative energy partnerships		8,348			9,761			8,682			13,850			17,660			26,791			17,660
Amortization of intangible assets		916			1,056			1,090			1,028			1,179			3,062			3,823
Restructuring expense		—			82			5,287			—			—			5,369			—
All other expenses		16,508			8,256			14,474			11,286			11,521			39,238			32,691

Total noninterest expense		75,671			76,319			89,896			92,895			86,123			241,886			210,320

Income from continuing operations before income taxes		14,169			2,385			2,905			21,952			16,163			19,459			78,537
Income tax (benefit) expense		(3,939	)		(12,753	)		(6,471	)		(2,543	)		(9,016	)		(23,163	)		16,292

Income from continuing operations		18,108			15,138			9,376			24,495			25,179			42,622			62,245

Income (loss) from discontinued operations before income taxes		(1,958	)		(4,991	)		13,348			14,965			18,574			6,399			33,952
Income tax (benefit) expense		(799	)		(2,110	)		5,523			6,196			7,816			2,614			14,045

Income (loss) from discontinued operations		(1,159	)		(2,881	)		7,825			8,769			10,758			3,785			19,907

Net income		16,949			12,257			17,201			33,264			35,937			46,407			82,152
Preferred stock dividends		5,112			5,113			5,113			5,113			5,112			15,338			14,801

Net income available to common stockholders	$	11,837		$	7,144		$	12,088		$	28,151		$	30,825		$	31,069		$	67,351

Basic earnings per total common share
Income from continuing operations	$	0.25		$	0.20		$	0.08		$	0.37		$	0.38		$	0.52		$	0.99
Income (loss) from discontinued operations		(0.02	)		(0.06	)		0.15			0.18			0.22			0.08			0.43

Net income	$	0.23		$	0.14		$	0.23		$	0.55		$	0.60		$	0.60		$	1.42

Diluted earnings per total common share
Income from continuing operations	$	0.25		$	0.20		$	0.08		$	0.36		$	0.38		$	0.52		$	0.97
Income (loss) from discontinued operations		(0.02	)		(0.06	)		0.15			0.18			0.21			0.07			0.43

Net income	$	0.23		$	0.14		$	0.23		$	0.54		$	0.59		$	0.59		$	1.40

Weighted average number of shares outstanding
Basic		50,362,314			50,289,590			49,991,186			50,008,234			49,907,840			50,160,928			45,760,802
Diluted		50,933,358			50,942,324			50,754,145			50,702,110			50,996,469			50,810,407			46,681,317
Dividends declared per common share	$	0.13		$	0.13		$	0.13		$	0.13		$	0.12		$	0.39		$	0.36

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Banc of California, Inc.

Reconciliation of Consolidated Statements of Operations between Continuing and Discontinued Operations

(Dollars in thousands, except per share data)

(Unaudited)


	Three Months Ended September 30, 2017									Nine Months Ended September 30, 2017
	Continuing			Discontinued			Consolidated			Continuing			Discontinued		Consolidated
	Operations			Operations			Operations			Operations			Operations		Operations
Interest and dividend income	$	96,751		$	917		$	97,668		$	292,033		$	6,979	$	299,012
Interest expense		21,715			—			21,715			61,016			—		61,016

Net interest income		75,036			917			75,953			231,017			6,979		237,996
Provision for loan and lease losses		3,561			—			3,561			8,647			—		8,647

Net interest income after provision for loan and lease losses		71,475			917			72,392			222,370			6,979		229,349
Noninterest income
Customer service fees		1,576			—			1,576			4,868			—		4,868
Loan servicing income		553			—			553			3,441			1,551		4,992
Net gain on sale of securities available for sale		7,625			—			7,625			12,080			—		12,080
Net gain on sale of loans		5,735			—			5,735			10,737			—		10,737
Mortgage banking income		—			13			13			—			43,083		43,083
Loan brokerage income		—			6			6			1,061			164		1,225
Gain on disposal of discontinued operations		—			211			211			—			13,749		13,749
All other income		2,876			232			3,108			6,788			826		7,614

Total noninterest income		18,365			462			18,827			38,975			59,373		98,348
Noninterest expense
Salaries and employee benefits		30,216			416			30,632			96,007			38,384		134,391
Occupancy and equipment		10,085			359			10,444			30,529			3,754		34,283
Professional fees		7,697			270			7,967			34,564			2,462		37,026
Data processing		1,901			141			2,042			6,326			668		6,994
Loss on investments in alternative energy partnerships		8,348			—			8,348			26,791			—		26,791
Amortization of intangible assets		916			—			916			3,062			—		3,062
Restructuring expense		—			279			279			5,369			3,794		9,163
All other expenses		16,508			1,872			18,380			39,238			10,891		50,129

Total noninterest expense		75,671			3,337			79,008			241,886			59,953		301,839

Income (loss) before income taxes		14,169			(1,958	)		12,211			19,459			6,399		25,858
Income tax (benefit) expense		(3,939	)		(799	)		(4,738	)		(23,163	)		2,614		(20,549	)

Net income	$	18,108		$	(1,159	)	$	16,949		$	42,622		$	3,785	$	46,407

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Banc of California, Inc.

Selected Financial Data

(Dollars in thousands)

(Unaudited)


	Three Months Ended															Nine Months Ended
	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			September 30, 2017			September 30, 2016
Average balances of consolidated operations
Total assets	$	10,101,181		$	10,697,003		$	11,188,806		$	11,568,849		$	10,860,257		$	10,658,346		$	9,921,657
Total gross loans and leases		6,268,915			6,639,666			6,785,013			7,209,241			7,245,472			6,562,641			6,636,978
Investment securities		2,791,585			3,004,551			3,376,698			3,236,253			2,776,304			3,055,468			2,534,788
Total interest earning assets		9,580,093			10,161,566			10,661,834			11,075,367			10,432,247			10,130,535			9,468,979
Total interest-bearing deposits		6,501,227			6,981,991			7,724,061			7,825,036			7,164,061			7,064,615			6,068,343
Total borrowings		1,224,973			1,265,279			1,058,607			1,190,060			1,297,382			1,183,562			1,557,157
Total interest bearing liabilities		7,726,200			8,247,270			8,782,668			9,015,096			8,461,443			8,248,176			7,625,500
Total stockholders’ equity		1,005,462			1,014,267			1,001,784			995,908			968,684			1,007,185			876,922
Profitability and other ratios of consolidated operations
Return on average assets⁽¹⁾		0.67	%		0.46	%		0.62	%		1.14	%		1.32	%		0.58	%		1.11	%
Return on average equity ⁽¹⁾		6.69	%		4.85	%		6.96	%		13.29	%		14.76	%		6.16	%		12.51	%
Return on average tangible common equity ⁽²⁾		7.16	%		4.51	%		7.76	%		17.30	%		19.51	%		6.46	%		16.84	%
Dividend payout ratio ⁽³⁾		56.52	%		92.86	%		56.52	%		23.64	%		20.00	%		65.00	%		25.35	%
Net interest spread		2.92	%		2.90	%		3.03	%		2.99	%		3.18	%		2.96	%		3.22	%
Net interest margin⁽¹⁾		3.15	%		3.09	%		3.19	%		3.13	%		3.32	%		3.14	%		3.36	%
Noninterest income to total revenue ⁽⁴⁾		19.86	%		20.20	%		41.62	%		47.79	%		46.18	%		29.24	%		44.63	%
Noninterest income to average total assets⁽¹⁾		0.74	%		0.74	%		2.16	%		2.74	%		2.73	%		1.23	%		2.59	%
Noninterest expense to average total assets⁽¹⁾		3.10	%		3.68	%		4.52	%		4.44	%		4.55	%		3.79	%		4.22	%
Efficiency ratio⁽⁵⁾		83.36	%		100.10	%		86.87	%		77.51	%		76.90	%		89.74	%		72.79	%
Adjusted efficiency ratio for including the pre-tax effect of investments in alternative energy partnerships ^{(2) , (5)}		72.49	%		80.51	%		78.76	%		66.87	%		62.38	%		77.58	%		67.23	%
Average held-for-investment loans and leases to average deposits		77.33	%		73.54	%		68.33	%		69.11	%		75.92	%		72.88	%		79.27	%
Average investment securities to average total assets		27.64	%		28.09	%		30.18	%		27.97	%		25.56	%		28.67	%		25.55	%
Average stockholders’ equity to average total assets		9.95	%		9.48	%		8.95	%		8.61	%		8.92	%		9.45	%		8.84	%

(1)

Ratios are presented on an annualized basis.

(2)

The ratios are determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP).

See Non-GAAP measures section for reconciliation of the calculation.

(3)

The ratio is calculated by dividing dividends declared per common share by basic earnings per share

(4)

Total revenue is equal to the sum of net interest income before provision for loan and lease losses and noninterest income.

(5)

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

- 6 -

Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)


	Three Months Ended															Nine Months Ended
	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			September 30, 2017			September 30, 2016
Allowance for loan and lease losses (ALLL)
Balance at beginning of period	$	42,385		$	42,736		$	40,444		$	40,233		$	37,483		$	40,444		$	35,533
Loans and leases charged off		(959	)		(2,898	)		(357	)		(1,351	)		(393	)		(4,214	)		(1,267	)
Recoveries		85			44			66			973			551			195			1,285
Provision for loan and lease losses		3,561			2,503			2,583			589			2,592			8,647			4,682

Balance at end of period	$	45,072		$	42,385		$	42,736		$	40,444		$	40,233		$	45,072		$	40,233

Annualized net loan charge-offs to average total loans and leases held-for-investment		0.06	%		0.19	%		0.02	%		0.02	%		-0.01	%		0.09	%		-0.01	%
Reserve for loss on repurchased loans
Balance at beginning of period	$	8,028		$	8,118		$	7,974		$	11,369		$	10,438			7,974		$	9,700
Provision for loan repurchases		(651	)		270			517			(1,881	)		1,241			136			2,471
Utilization of reserve for loan repurchases		(1,204)			(360)			(373)			(1,514)			(310)			(1,937)			(802)
Balance at end of period	$	6,173		$	8,028		$	8,118		$	7,974		$	11,369		$	6,173		$	11,369


	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Asset quality information and ratios
Delinquent loans and leases held-for-investment 30 to 89 days delinquent, excluding purchased credit impaired (PCI) loans	$	20,286		$	23,305		$	22,596		$	30,140		$	39,054
90+ days delinquent, excluding PCI loans		11,150			6,508			9,802			14,218			22,827

Total delinquent loans, excluding PCI loans		34,436			29,813			32,398			44,358			61,881

PCI loans, 30 to 89 days delinquent		—			343			16,410			15,078			39,113
PCI loans, 90+ days delinquent		—			807			4,943			2,577			6,145

Total delinquent PCI loans		—			1,150			21,353			17,655			45,258

Total delinquent loans	$	31,436		$	30,963		$	53,751		$	62,013		$	107,139

Total delinquent non-PCI loans to total non-PCI loans		0.50	%		0.50	%		0.54	%		0.75	%		1.04	%
Total delinquent loans and leases to total loans and leases		0.50	%		0.52	%		0.88	%		1.03	%		1.63	%
Non-performing assets, excluding loans held-for-sale
Non-performing loans and leases, excluding PCI loans	$	12,275		$	9,064		$	16,222		$	14,942		$	35,223
90+ days delinquent and still accruing loans and leases, excluding PCI loans		—			—			—			—			—
Other real estate owned		3,682			3,267			3,345			2,502			275

Non-performing assets	$	15,957		$	12,331		$	19,567		$	17,444		$	35,498

ALLL to non-performing loans and leases		367.19	%		467.62	%		263.44	%		270.67	%		114.22	%
Non-performing loans and leases to total loans and leases		0.20	%		0.15	%		0.27	%		0.25	%		0.54	%
Non-performing assets to total assets		0.16	%		0.12	%		0.18	%		0.16	%		0.32	%
Troubled debt restructurings (TDRs)
Performing TDRs	$	5,668		$	4,579		$	4,309		$	4,827		$	11,160
Non-performing TDRs		—			1,125			1,144			—			520

Total TDRs	$	5,668		$	5,704		$	5,453		$	4,827		$	11,680

- 7 -

Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)


	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Loan and lease breakdown by ALLL evaluation type
Originated loans and leases
Individually evaluated for impairment	$	15,485		$	10,844		$	12,518		$	10,168		$	22,306
Collectively evaluated for impairment		5,472,533			5,148,979			5,096,657			4,933,381			4,789,155
Acquired loans not impaired at acquisition
Individually evaluated for impairment		430			—			—			2,429			3,397
Collectively evaluated for impairment		738,449			792,213			834,983			924,993			958,135
Seasoned SFR mortgage loan pools - non-impaired
Individually evaluated for impairment		—			—			877			755			6,581
Collectively evaluated for impairment		—			—			20,587			21,200			146,850
Acquired with deteriorated credit quality		—			4,301			139,699			141,826			642,367

Total loans	$	6,226,897		$	5,956,337		$	6,105,321		$	6,034,752		$	6,568,791

ALLL breakdown
Originated loans and leases
Individually evaluated for impairment	$	407		$	424		$	130		$	137		$	137
Collectively evaluated for impairment		43,316			40,666			41,091			38,394			37,858
Acquired loans not impaired at acquisition
Individually evaluated for impairment		8			—			—			—			—
Collectively evaluated for impairment		1,341			1,271			1,234			1,703			1,606
Seasoned SFR mortgage loan pools - non-impaired
Individually evaluated for impairment		—			—			120			106			528
Collectively evaluated for impairment		—			—			—			—			—
Acquired with deteriorated credit quality		—			24			161			104			104

Total ALLL	$	45,072		$	42,385		$	42,736		$	40,444		$	40,233

Discount on Purchased/Acquired Loans
Acquired loans not impaired at acquisition	$	15,983		$	15,446		$	16,275		$	17,820		$	18,400
Seasoned SFR mortgage loan pools - non-impaired		—			—			1,219			1,280			9,789
Acquired with deteriorated credit quality		—			1,754			21,538			22,454			57,780

Total Discount	$	15,983		$	17,200		$	39,032		$	41,554		$	85,969

Ratios
To originated loans and leases:
Individually evaluated for impairment		2.63	%		3.91	%		1.04	%		1.35	%		0.61	%
Collectively evaluated for impairment		0.79	%		0.79	%		0.81	%		0.78	%		0.79	%
Total ALLL		0.80	%		0.80	%		0.81	%		0.78	%		0.79	%
To originated loans and leases and acquired loans not impaired at acquisition:
Individually evaluated for impairment		2.61	%		3.91	%		1.04	%		1.09	%		0.53	%
Collectively evaluated for impairment		0.72	%		0.71	%		0.71	%		0.68	%		0.69	%
Total ALLL		0.72	%		0.71	%		0.71	%		0.69	%		0.69	%
To total loans and leases:
Individually evaluated for impairment		2.61	%		3.91	%		1.87	%		1.82	%		2.06	%
Collectively evaluated for impairment		0.72	%		0.71	%		0.71	%		0.68	%		0.67	%
Total ALLL		0.72	%		0.71	%		0.70	%		0.67	%		0.61	%

- 8 -

Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)


	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Composition of held-for-investment loans and leases
Commercial real estate	$	713,120		$	716,771		$	750,592		$	729,959		$	721,838
Multifamily		1,617,890			1,545,888			1,449,715			1,365,262			1,199,207
Construction		176,397			156,246			142,164			125,100			99,086
Commercial and industrial		1,602,805			1,560,916			1,585,656			1,522,960			1,531,041
SBA		78,604			77,254			76,040			73,840			67,737
Lease financing		91			173			285			379			234,540

Total commercial loans		4,188,907			4,057,248			4,004,452			3,817,500			3,853,449

Single family residential mortgage		1,920,310			1,778,536			1,975,055			2,106,630			2,601,375
Other consumer		117,680			120,553			125,814			110,622			113,967

Total consumer loans		2,037,990			1,899,089			2,100,869			2,217,252			2,715,342

Total gross loans and leases	$	6,226,897		$	5,956,337		$	6,105,321		$	6,034,752		$	6,568,791

Composition percentage of held-for-investment loans and leases
Commercial real estate		11.5	%		12.0	%		12.3	%		12.1	%		11.0	%
Multifamily		26.0	%		26.0	%		23.7	%		22.6	%		18.3	%
Construction		2.8	%		2.6	%		2.3	%		2.1	%		1.5	%
Commercial and industrial		25.7	%		26.2	%		26.1	%		25.2	%		23.3	%
SBA		1.3	%		1.3	%		1.2	%		1.2	%		1.0	%
Lease financing		0.0	%		0.0	%		0.0	%		0.1	%		3.6	%

Total commercial loans		67.3	%		68.1	%		65.6	%		63.3	%		58.7	%

Single family residential mortgage		30.8	%		29.9	%		32.3	%		34.9	%		39.6	%
Other consumer		1.9	%		2.0	%		2.1	%		1.8	%		1.7	%

Total consumer loans		32.7	%		31.9	%		34.4	%		36.7	%		41.3	%

Total gross loans and leases		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Composition of deposits
Noninterest-bearing checking	$	1,075,782		$	1,138,095		$	1,273,649		$	1,282,629		$	1,267,363
Interest-bearing checking		2,011,943			2,058,130			1,998,778			2,048,839			2,369,332
Money market		1,728,937			2,265,380			2,610,376			2,731,314			2,900,248
Savings		945,699			985,001			1,008,218			1,118,175			880,712
Certificates of deposit		1,641,232			1,598,305			1,706,672			1,961,193			1,660,664
Total deposits	$	7,403,593		$	8,044,911		$	8,597,693		$	9,142,150		$	9,078,319

Composition percentage of deposits
Noninterest-bearing checking		14.5	%		14.1	%		14.8	%		14.0	%		14.0	%
Interest-bearing checking		27.2	%		25.6	%		23.2	%		22.4	%		26.1	%
Money market		23.3	%		28.2	%		30.4	%		29.9	%		31.9	%
Savings		12.8	%		12.2	%		11.7	%		12.2	%		9.7	%
Certificates of deposit		22.2	%		19.9	%		19.9	%		21.5	%		18.3	%

Total deposits		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

- 9 -

Banc of California, Inc.

Average Balance, Average Yield Earned, and Average Cost Paid

(Dollars in thousands)

(Unaudited)


	Three Months Ended
	September 30, 2017								June 30, 2017								March 31, 2017
	Average Balance			Interest		Yield / Cost			Average Balance			Interest		Yield / Cost			Average Balance			Interest		Yield / Cost
Interest earning assets
Loans held-for-sale of discontinued operations	$	98,904		$	917		3.68	%	$	361,784		$	2,796		3.10	%	$	388,194		$	3,266		3.41	%
Loans held-for-sale and SFR mortgage		1,923,214			18,837		3.89	%		2,046,409			20,086		3.94	%		2,275,338			21,950		3.91	%
Seasoned SFR mortgage loan pools		84,128			1,208		5.70	%		151,759			2,121		5.61	%		154,736			2,145		5.62	%
Commercial real estate, multifamily, and construction		2,494,284			27,980		4.45	%		2,394,487			25,821		4.33	%		2,336,323			25,851		4.49	%
Commercial and industrial, SBA, and lease financing		1,553,816			20,820		5.32	%		1,565,583			20,233		5.18	%		1,508,756			18,293		4.92	%
Other consumer		114,569			1,363		4.72	%		119,644			1,400		4.69	%		121,666			1,268		4.23	%

Gross loans and leases		6,268,915			71,125		4.50	%		6,639,666			72,457		4.38	%		6,785,013			72,773		4.35	%
Securities		2,791,585			24,337		3.46	%		3,004,551			24,996		3.34	%		3,376,698			27,239		3.27	%
Other interest-earning assets		519,593			2,206		1.68	%		517,349			1,783		1.38	%		500,123			2,096		1.70	%

Total interest-earning assets		9,580,093			97,668		4.04	%		10,161,566			99,236		3.92	%		10,661,834			102,108		3.88	%
Allowance for loan and lease losses		(42,696	)							(42,896	)							(41,285	)
BOLI and non-interest earning assets		563,784								578,333								568,257

Total assets	$	10,101,181							$	10,697,003							$	11,188,806

Interest-bearing liabilities
Savings	$	968,158		$	2,263		0.93	%	$	1,002,797		$	2,262		0.90	%	$	1,042,031		$	2,292		0.89	%
Interest-bearing checking		2,037,729			3,871		0.75	%		2,013,751			3,609		0.72	%		2,008,828			3,414		0.69	%
Money market		1,935,262			5,095		1.04	%		2,359,173			5,482		0.93	%		2,735,810			4,691		0.70	%
Certificates of deposit		1,560,078			4,239		1.08	%		1,606,270			3,589		0.90	%		1,937,392			3,563		0.75	%

Total interest-bearing deposits		6,501,227			15,468		0.94	%		6,981,991			14,942		0.86	%		7,724,061			13,960		0.73	%
FHLB advances		962,391			3,352		1.38	%		990,780			2,774		1.12	%		812,444			1,423		0.71	%
Securities sold under repurchase agreements		88,810			500		2.23	%		34,298			180		2.11	%		2,123			6		1.15	%
Long-term debt and other interest-bearing liabilities		173,772			2,395		5.47	%		240,201			3,044		5.08	%		244,040			2,972		4.94	%

Total interest-bearing liabilities		7,726,200			21,715		1.12	%		8,247,270			20,940		1.02	%		8,782,668			18,361		0.85	%
Noninterest-bearing deposits		1,178,062								1,261,338								1,181,279
Non-interest-bearing liabilities		191,457								174,128								223,075

Total liabilities		9,095,719								9,682,736								10,187,022
Total stockholders’ equity		1,005,462								1,014,267								1,001,784

Total liabilities and stockholders’ equity	$	10,101,181							$	10,697,003							$	11,188,806

Net interest income/spread				$	75,953		2.92	%				$	78,296		2.90	%				$	83,747		3.03	%

Net interest margin							3.15	%							3.09	%							3.19	%
Ratio of interest-earning assets to interest-bearing liabilities		123.99	%							123.21	%							121.40	%
Total deposits	$	7,679,289		$	15,468		0.80	%	$	8,243,329		$	14,942		0.73	%	$	8,905,340		$	13,960		0.64	%
Total funding ⁽¹⁾	$	8,904,262		$	21,715		0.97	%	$	9,508,608		$	20,940		0.88	%	$	9,963,947		$	18,361		0.75	%

(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.

- 10 -

Banc of California, Inc.

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

(Dollars in thousands)

(Unaudited)


	Three Months Ended
	December 31, 2016								September 30, 2016
	Average Balance			Interest		Yield / Cost			Average Balance			Interest		Yield / Cost
Interest earning assets
Loans held-for-sale of discontinued operations	$	519,495		$	4,126		3.16	%	$	479,133		$	4,113		3.42	%
Loans held-for-sale and SFR mortgage		2,236,354			21,451		3.82	%		2,139,746			20,252		3.77	%
Seasoned SFR mortgage loan pools		570,006			6,281		4.38	%		907,387			11,924		5.23	%
Commercial real estate, multifamily, and construction		2,146,067			23,405		4.34	%		2,033,718			23,097		4.52	%
Commercial and industrial, SBA, and lease financing		1,628,177			19,228		4.70	%		1,576,379			19,734		4.98	%
Other consumer		109,142			1,248		4.55	%		109,109			1,250		4.56	%

Gross loans and leases		7,209,241			75,739		4.18	%		7,245,472			80,370		4.41	%
Securities		3,236,253			24,153		2.97	%		2,776,304			19,934		2.86	%
Other interest-earning assets		629,873			3,965		2.50	%		410,471			1,931		1.87	%

Total interest-earning assets		11,075,367			103,857		3.73	%		10,432,247			102,235		3.90	%
Allowance for loan and lease losses		(39,163	)							(38,258	)
BOLI and non-interest earning assets		532,645								466,268

Total assets	$	11,568,849							$	10,860,257

Interest-bearing liabilities
Savings	$	941,404		$	1,917		0.81	%	$	887,973		$	1,704		0.76	%
Interest-bearing checking		2,081,105			3,371		0.64	%		2,300,128			3,972		0.69	%
Money market		2,830,271			3,909		0.55	%		2,427,356			3,226		0.53	%
Certificates of deposit		1,972,256			3,307		0.67	%		1,548,604			2,322		0.60	%

Total interest-bearing deposits		7,825,036			12,504		0.64	%		7,164,061			11,224		0.62	%
FHLB advances		892,120			1,076		0.48	%		1,104,663			1,413		0.51	%
Securities sold under repurchase agreements		59,761			221		1.47	%		12,539			48		1.52	%
Long-term debt and other interest-bearing liabilities		238,179			2,998		5.01	%		180,180			2,589		5.72	%

Total interest-bearing liabilities		9,015,096			16,799		0.74	%		8,461,443			15,274		0.72	%
Noninterest-bearing deposits		1,286,642								1,178,849
Non-interest-bearing liabilities		271,203								251,281

Total liabilities		10,572,941								9,891,573
Total stockholders’ equity		995,908								968,684

Total liabilities and stockholders’ equity	$	11,568,849							$	10,860,257

Net interest income/spread				$	87,058		2.99	%				$	86,961		3.18	%

Net interest margin							3.13	%							3.32	%
Ratio of interest-earning assets to interest-bearing liabilities		122.85	%							123.29	%
Total deposits	$	9,111,678		$	12,504		0.55	%	$	8,342,910		$	11,224		0.54	%
Total funding ⁽¹⁾	$	10,301,738		$	16,799		0.65	%	$	9,640,292		$	15,274		0.63	%

(1)

- 11 -

Banc of California, Inc.

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

(Dollars in thousands)

(Unaudited)


	Nine Months Ended
	September 30, 2017								September 30, 2016
	Average Balance			Interest		Yield / Cost			Average Balance			Interest		Yield / Cost
Interest earning assets
Loans held-for-sale of discontinued operations	$	281,177		$	6,979		3.32	%	$	428,419		$	11,002		3.43	%
Loans held-for-sale and SFR mortgage		2,081,088			60,873		3.91	%		1,969,682			55,659		3.77	%
Seasoned SFR mortgage loan pools		129,949			5,474		5.63	%		887,273			37,037		5.58	%
Commercial real estate, multifamily, and construction		2,408,943			79,651		4.42	%		1,901,157			63,962		4.49	%
Commercial and industrial, SBA, and lease financing		1,542,884			59,347		5.14	%		1,342,959			50,041		4.98	%
Other consumer		118,600			4,031		4.54	%		107,488			3,556		4.42	%

Gross loans and leases		6,562,641			216,355		4.41	%		6,636,978			221,257		4.45	%
Securities		3,055,468			76,572		3.35	%		2,534,788			55,374		2.92	%
Other interest-earning assets		512,426			6,085		1.59	%		297,213			4,484		2.02	%

Total interest-earning assets		10,130,535			299,012		3.95	%		9,468,979			281,115		3.97	%
Allowance for loan and lease losses		(42,297	)							(37,161	)
BOLI and non-interest earning assets		570,108								489,839

Total assets	$	10,658,346							$	9,921,657

Interest-bearing liabilities
Savings	$	1,004,058		$	6,817		0.91	%	$	863,088		$	4,878		0.75	%
Interest-bearing checking		2,020,208			10,894		0.72	%		2,061,761			10,352		0.67	%
Money market		2,340,484			15,268		0.87	%		1,847,906			6,867		0.50	%
Certificates of deposit		1,699,865			11,391		0.90	%		1,295,588			5,619		0.58	%

Total interest-bearing deposits		7,064,615			44,370		0.84	%		6,068,343			27,716		0.61	%
FHLB advances		922,421			7,549		1.09	%		1,240,872			4,641		0.50	%
Securities sold under repurchase agreements		42,061			686		2.18	%		104,076			597		0.77	%
Long-term debt and other interest-bearing liabilities		219,080			8,411		5.13	%		212,209			9,746		6.13	%

Total interest-bearing liabilities		8,248,176			61,016		0.99	%		7,625,500			42,700		0.75	%
Noninterest-bearing deposits		1,206,881								1,205,179
Non-interest-bearing liabilities		196,104								214,056

Total liabilities		9,651,161								9,044,735
Total stockholders’ equity		1,007,185								876,922

Total liabilities and stockholders’ equity	$	10,658,346							$	9,921,657

Net interest income/spread				$	237,996		2.96	%				$	238,415		3.22	%

Net interest margin							3.14	%							3.36	%
Ratio of interest-earning assets to interest-bearing liabilities		122.82	%							124.18	%
Total deposits	$	8,271,496		$	44,370		0.72	%	$	7,273,522		$	27,716		0.51	%
Total funding ⁽¹⁾	$	9,455,057		$	61,016		0.86	%	$	8,830,679		$	42,700		0.65	%

(1)

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Banc of California, Inc.

Capital Ratios

(Unaudited)


	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Capital Ratios
Banc of California, Inc.
Total risk-based capital ratio		14.48	%		14.39	%		13.72	%		13.70	%		12.79	%
Tier 1 risk-based capital ratio		13.77	%		13.72	%		13.08	%		13.22	%		12.54	%
Common equity tier 1 capital ratio		9.91	%		9.83	%		9.37	%		9.44	%		8.85	%
Tier 1 leverage ratio		9.55	%		8.93	%		8.51	%		8.17	%		8.47	%
Banc of California, NA
Total risk-based capital ratio		16.39	%		16.13	%		15.11	%		14.73	%		14.38	%
Tier 1 risk-based capital ratio		15.68	%		15.45	%		14.48	%		14.12	%		13.83	%
Common equity tier 1 capital ratio		15.68	%		15.45	%		14.48	%		14.12	%		13.83	%
Tier 1 leverage ratio		10.88	%		10.05	%		9.43	%		8.71	%		9.31	%

- 13 -

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures

(Dollars in thousands, except per share data)

(Unaudited)

Under Item 10(e) of SEC Regulation S-K, public companies disclosing financial measures in filings with the SEC that are not calculated in accordance with GAAP must also disclose, along with each non-GAAP financial measure, certain additional information, including a presentation of the most directly comparable GAAP financial measure, a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure, as well as a statement of the reasons why the company’s management believes that presentation of the non-GAAP financial measure provides useful information to investors regarding the company’s financial condition and results of operations and, to the extent material, a statement of the additional purposes, if any, for which the company’s management uses the non-GAAP financial measure.

Return on average tangible common equity and efficiency ratio, as adjusted, tangible common equity to tangible assets, and tangible common equity per common share and tangible common equity per common share and per common share issuable under purchase contracts constitute supplemental financial information determined by methods other than in accordance with GAAP. These non-GAAP measures are used by management in its analysis of the Company’s performance.

Tangible common equity is calculated by subtracting preferred stock, goodwill, and other intangible assets from stockholders’ equity. Tangible assets is calculated by subtracting goodwill and other intangible assets from total assets. Banking regulators also exclude goodwill and other intangible assets from stockholders’ equity when assessing the capital adequacy of a financial institution.

Adjusted efficiency ratio is calculated by subtracting loss on investments in alternative energy partnerships from noninterest expense and adding total pre-tax return, which includes the loss on investments in alternative energy partnerships, to the sum of net interest income and noninterest income (total revenue). Management believes the presentation of these financial measures adjusting the impact of these items provides useful supplemental information that is essential to a proper understanding of the financial results and operating performance of the Company.

This disclosure should not be viewed as a substitute 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 provide reconciliations of the non-GAAP measures with financial measures defined by GAAP.


	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Tangible common equity to tangible assets ratio
Total assets	$	10,280,028		$	10,365,768		$	11,052,085		$	11,029,853		$	11,216,404
Less goodwill		(37,144	)		(37,144	)		(37,144	)		(39,244	)		(39,244	)
Less other intangible assets		(10,219	)		(11,135	)		(12,191	)		(13,617	)		(15,335	)

Tangible assets	$	10,232,665		$	10,317,489		$	11,002,750		$	10,976,992		$	11,161,825

Total stockholders’ equity	$	1,013,908		$	1,006,292		$	985,748		$	980,239		$	971,424
Less goodwill		(37,144	)		(37,144	)		(37,144	)		(39,244	)		(39,244	)
Less other intangible assets		(10,219	)		(11,135	)		(12,191	)		(13,617	)		(15,335	)

Tangible equity		966,545			958,013			936,413			927,378			916,845
Less preferred stock		(269,071	)		(269,071	)		(269,071	)		(269,071	)		(269,071	)

Tangible common equity	$	697,474		$	688,942		$	667,342		$	658,307		$	647,774

Total stockholders’ equity to total assets		9.86	%		9.71	%		8.92	%		8.89	%		8.66	%
Tangible equity to tangible assets		9.45	%		9.29	%		8.51	%		8.45	%		8.21	%
Tangible common equity to tangible assets		6.82	%		6.68	%		6.07	%		6.00	%		5.80	%
Common stock outstanding		50,096,056			49,991,395			49,601,363			49,695,299			49,531,321
Class B non-voting non-convertible common stock outstanding		430,694			355,173			277,797			201,922			201,922

Total common stock outstanding		50,526,750			50,346,568			49,879,160			49,897,221			49,733,243

Minimum number of shares issuable under purchase contracts ⁽¹⁾		—			—			166,265			188,742			188,742

Total common stock outstanding and shares issuable under purchase contracts		50,526,750			50,346,568			50,045,425			50,085,963			49,921,985


(1) Purchase contracts relating to the tangible equity units
Tangible common equity per common stock	$	13.80		$	13.68		$	13.38		$	13.19		$	13.02
Book value per common stock	$	14.74		$	14.64		$	14.37		$	14.25		$	14.12
Tangible common equity per common stock and shares issuable under purchase contracts	$	13.80		$	13.68		$	13.33		$	13.14		$	12.98
Book value per common stock and shares issuable under purchase contracts	$	14.74		$	14.64		$	14.32		$	14.20		$	14.07

- 14 -

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)


	Three Months Ended															Nine Months Ended
	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			September 30, 2017			September 30, 2016
Return on tangible common equity
Average total stockholders’ equity	$	1,005,462		$	1,014,267		$	1,001,784		$	995,908		$	968,684		$	1,007,185		$	876,922
Less average preferred stock		(269,071	)		(269,071	)		(269,071	)		(269,071	)		(269,071	)		(269,071	)		(266,377	)
Less average goodwill		(37,144	)		(37,144	)		(39,221	)		(39,244	)		(39,244	)		(37,829	)		(39,244	)
Less average other intangible assets		(10,760	)		(11,808	)		(13,190	)		(14,704	)		(16,039	)		(11,910	)		(17,308	)

Average tangible common equity	$	688,487		$	696,244		$	680,302		$	672,889		$	644,330		$	688,375		$	553,993

Net income	$	16,949		$	12,257		$	17,201		$	33,264		$	35,937		$	46,407		$	82,152
Less preferred stock dividends		(5,112	)		(5,113	)		(5,113	)		(5,113	)		(5,112	)		(15,338	)		(14,801	)
Add amortization of intangible assets		916			1,056			1,090			1,028			1,179			3,062			3,823
Add impairment on intangible assets		—			—			336			690			—			336			—
Less tax effect on amortization and impairment of intangible assets ⁽¹⁾		(321	)		(370	)		(499	)		(601	)		(413	)		(1,189	)		(1,338	)

Net income available to common stockholders	$	12,432		$	7,830		$	13,015		$	29,268		$	31,591		$	33,278		$	69,836

Return on average equity		6.69	%		4.85	%		6.96	%		13.29	%		14.76	%		6.16	%		12.51	%
Return on average tangible common equity		7.16	%		4.51	%		7.76	%		17.30	%		19.51	%		6.46	%		16.84	%

(1) Utilized a 35% effective tax rate
	Three Months Ended															Nine Months Ended
	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			September 30, 2017			September 30, 2016
Adjusted efficiency ratio for including the pre-tax effect of investments in alternative energy partnerships
Noninterest expense	$	79,008		$	98,216		$	124,615		$	129,239		$	124,262		$	301,839		$	313,437
Loss on investments in alternative energy partnerships		(8,348	)		(9,761	)		(8,682	)		(13,850	)		(17,660	)		(26,791	)		(17,660	)

Adjusted noninterest expense	$	70,660		$	88,455		$	115,933		$	115,389		$	106,602		$	275,048		$	295,777

Net interest income	$	75,953		$	78,296		$	83,747		$	87,058		$	86,961		$	237,996		$	238,415
Noninterest income		18,827			19,817			59,704			79,687			74,630			98,348			192,193

Total revenue		94,780			98,113			143,451			166,745			161,591			336,344			430,608
Tax credit from investments in alternative energy partnerships		8,777			15,681			8,829			14,048			19,357			33,287			19,357
Deferred tax expense on investments in alternative energy partnerships		(1,536	)		(2,744	)		(1,545	)		(2,459	)		(3,387	)		(5,825	)		(3,387	)
Tax effect on tax credit and deferred tax expense		3,804			8,584			5,140			8,078			11,002			17,528			11,002
Loss on investments in alternative energy partnerships, net		(8,348	)		(9,761	)		(8,682	)		(13,850	)		(17,660	)		(26,791	)		(17,660	)

Total pre-tax adjustments for investments in alternative energy partnerships		2,697			11,760			3,742			5,817			9,312			18,199			9,312

Adjusted total revenue	$	97,477		$	109,873		$	147,193		$	172,562		$	170,903		$	354,543		$	439,920

Efficiency ratio		83.36	%		100.10	%		86.87	%		77.51	%		76.90	%		89.74	%		72.79	%
Adjusted efficiency ratio for including the pre-tax effect of investments in alternative energy partnerships		72.49	%		80.51	%		78.76	%		66.87	%		62.38	%		77.58	%		67.23	%
Effective tax rate utilized for calculating tax effect on tax credit and deferred tax expense		34.44	%		39.89	%		41.37	%		41.10	%		40.79	%		38.96	%		40.79	%

- 15 -

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BANC OF CALIFORNIA, INC. Reports