$BANC-PF

BANC OF CALIFORNIA, INC.

CIK:0001169770|SEC Filings

CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2026	Mar. 31, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income:
Loans and leases	$ 354,832	$ 349,943	$ 362,303	$ 704,775	$ 708,406
Investment securities	42,407	41,873	37,616	84,280	75,478
Deposits in financial institutions	17,357	15,626	20,590	32,983	43,280
Total interest income	414,596	407,442	420,509	822,038	827,164
Interest expense:
Deposits	124,270	120,233	144,940	244,503	285,470
Borrowings	26,568	20,177	20,021	46,745	38,442
Subordinated debt	13,257	15,415	15,332	28,672	30,672
Total interest expense	164,095	155,825	180,293	319,920	354,584
Net interest income	250,501	251,617	240,216	502,118	472,580
Provision for credit losses	161,780	9,800	39,100	171,580	48,400
Net interest income after provision for credit losses	88,721	241,817	201,116	330,538	424,180
Noninterest income:
Leased equipment income	7,820	8,530	10,231	16,350	21,015
Commissions and fees	9,034	10,980	9,641	20,014	19,599
Service charges on deposit accounts	4,763	4,978	4,456	9,741	8,999
(Loss) gain on loans and leases HFS	(12,544)	10	21	(12,534)	232
Loss on securities AFS	(256,749)	0	0	(256,749)	0
Dividends and gains (losses) on equity investments	3,326	2,002	(114)	5,328	2,209
Warrant income	896	938	1,227	1,834	932
Other income	9,358	7,890	7,171	17,248	13,297
Total noninterest (loss) income	(234,096)	35,328	32,633	(198,768)	66,283
Noninterest expense:
Compensation	85,120	91,100	88,362	176,220	174,779
Customer related expense	24,114	23,737	26,577	47,851	54,328
Occupancy	14,714	14,892	15,473	29,606	30,483
Information technology and data processing	13,769	14,339	13,073	28,108	28,172
Insurance and assessments	14,500	6,764	9,403	21,264	16,686
Intangible asset amortization	6,349	6,348	7,159	12,697	14,319
Leased equipment depreciation	5,168	5,304	6,700	10,472	13,441
Other professional services	5,599	4,236	6,406	9,835	10,919
Loan expense	5,170	4,292	4,050	9,462	6,980
Other expense	15,364	10,379	8,666	25,743	19,415
Total noninterest expense	189,867	181,391	185,869	371,258	369,522
(Loss) earnings before income taxes	(335,242)	95,754	47,880	(239,488)	120,941
Income tax (benefit) expense	(93,895)	23,802	19,495	(70,093)	38,988
Net (loss) earnings	(241,347)	71,952	28,385	(169,395)	81,953
Preferred stock dividends	9,947	9,947	9,947	19,894	19,894
Net (loss) earnings available to common and equivalent stockholders, basic	(251,294)	62,005	18,438	(189,289)	62,059
Net (loss) earnings available to common and equivalent stockholders, diluted	$ (251,294)	$ 62,005	$ 18,438	$ (189,289)	$ 62,059
(Loss) earnings per share:
Basic (usd per share)	$ (1.61)	$ 0.40	$ 0.12	$ (1.22)	$ 0.38
Diluted (usd per share)	$ (1.61)	$ 0.39	$ 0.12	$ (1.22)	$ 0.38

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net (loss) earnings	$ (169,395)	$ 81,953
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities:
Depreciation and amortization	24,379	25,369
Amortization of net premiums on investment securities	9,073	10,034
Accretion of net purchased loan discounts and deferred loan fees	(31,587)	(42,852)
Amortization of intangible assets	12,883	14,319
Amortization of operating lease ROU assets	11,681	11,750
Provision for credit losses	171,580	48,400
Loss (gain) on sale of foreclosed assets	184	(115)
Provision for losses on foreclosed assets	50	633
Gain on sale of loans and leases	(13)	(241)
Loss on sale of premises and equipment	1	0
Loss on securities AFS	256,749	0
Unrealized (gain) loss on derivatives, foreign currencies, and credit-linked notes, net	(1,015)	271
LOCOM HFS adjustment	12,547	9
Earned stock compensation	9,832	11,932
(Increase) decrease in other assets	(160,754)	28,605
Increase (decrease) in accrued interest payable and other liabilities	64,217	(112,231)
Net cash provided by operating activities	210,412	77,836
Cash flows from investing activities:
Net increase in loans and leases	(216,430)	(949,050)
Proceeds from sales of loans and leases	146,538	32,421
Proceeds from maturities and paydowns of securities AFS	264,169	209,739
Proceeds from sales of securities AFS	2,209,843	0
Purchases of securities AFS	(2,291,503)	(166,865)
Proceeds from maturities and paydowns of securities HTM	748	614
Purchases of FHLB and FRB stock	(26,565)	(16,256)
Redemptions of FHLB and FRB stock	5,655	1,786
Proceeds from sales of foreclosed assets	2,666	7,068
Purchases of premises and equipment	(6,000)	(2,794)
Proceeds from BOLI death benefit	7,957	0
Net decrease in equipment leased to others under operating leases	9,316	5,055
Net cash provided by (used in) investing activities	106,394	(878,282)
Cash flows from financing activities:
Net decrease in noninterest-bearing deposits	(64,668)	(278,797)
Net increase in interest-bearing deposits	342,493	615,321
Repayments of borrowings	(393,282)	(176,184)
Proceeds from borrowings	789,815	700,000
Redemption of subordinated debt	(385,000)	0
Common shares repurchased under Stock Repurchase Program	(32,171)	(151,845)
Common shares purchased under Dividend Reinvestment Plan	0	144
Restricted stock surrendered	(6,234)	(3,387)
Preferred stock dividends paid	(19,894)	(19,894)
Common stock dividends paid	(37,775)	(33,572)
Net cash provided by financing activities	193,284	651,786
Net decrease in cash, cash equivalents, and restricted cash	510,090	(148,660)
Cash, cash equivalents, and restricted cash, beginning of period	2,307,965	2,502,212
Cash, cash equivalents, and restricted cash, end of period	2,818,055	2,353,552
Supplemental disclosures of cash flow information:
Cash paid for interest	324,837	373,260
Cash paid (received) for income taxes	24,599	(8,164)
Loans transferred to foreclosed assets	2,104	5,673
Transfers from loans HFI to loans HFS	813,181	441,248
Transfers from securities HTM to securities AFS	$ 2,317,572	$ 0

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS:
Cash and due from banks	$ 225,343	$ 181,103
Interest-earning deposits in financial institutions	2,592,712	2,126,862
Total cash, cash equivalents, and restricted cash	2,818,055	2,307,965
Securities AFS, at fair value, net of allowance for credit losses (amortized cost of $0 and $2,646,414, respectively)(ACL of $— and $775, respectively)	4,484,021	2,454,058
Securities HTM, at amortized cost, net of allowance for credit losses (fair value of $0 and $2,246,526, respectively)(ACL of $0 and $695, respectively)	0	2,308,636
FRB and FHLB stock, at cost	181,352	160,442
Total investment securities	4,665,373	4,923,136
Loans HFS	915,171	182,936
Loans and leases HFI	24,210,846	25,032,679
Allowance for loan and lease losses	(243,319)	(245,612)
Total loans and leases HFI, net	23,967,527	24,787,067
Equipment leased to others under operating leases	218,444	238,232
Premises and equipment, net	145,440	146,698
Bank owned life insurance	348,777	350,083
Goodwill	214,521	214,521
Intangible assets, net	92,709	105,287
Deferred tax asset, net	704,467	656,755
Other assets	940,469	884,762
Total assets	35,030,953	34,797,442
LIABILITIES:
Noninterest-bearing deposits	7,758,119	7,822,787
Interest-bearing deposits	20,363,063	20,020,570
Total deposits	28,121,182	27,843,357
Borrowings (including $110,363 and $113,634 at fair value, respectively)	2,460,363	2,063,819
Subordinated debt	573,555	952,740
Accrued interest payable and other liabilities	465,707	396,249
Total liabilities	31,620,807	31,256,165
Commitments and contingencies (Note 10)
STOCKHOLDERS' EQUITY:
Preferred stock	498,516	498,516
Additional paid-in capital	3,485,560	3,552,483
Retained deficit	(431,305)	(242,016)
Accumulated other comprehensive loss, net	(144,210)	(269,261)
Total stockholders' equity	3,410,146	3,541,277
Total liabilities and stockholders' equity	35,030,953	34,797,442
Common Stock
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par value, shares issued and outstanding at June 30, 2026; 150,039,018 shares issued and 149,963,520 outstanding at December 31, 2025)	1,580	1,500
Class B non-voting
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par value, shares issued and outstanding at June 30, 2026; 150,039,018 shares issued and 149,963,520 outstanding at December 31, 2025)	5	5
Non-voting common stock equivalents ($0.01 par value, — shares issued at June 30, 2026 and 5,017,064 shares issued at December 31, 2025)	$ 0	$ 50