BANC · Banc of California, Inc.

Banc of California delivered Q1 2026 results with diluted EPS of $0.39, down slightly from $0.42 in Q4 2025 but up 50% year-over-year from $0.26, driven by positive operating leverage including 8% revenue growth to $286.9 million and 1% decline in noninterest expense to $181.4 million year-over-year. Net interest income held steady at $251.6 million quarter-over-quarter, supported by a $9.7 million drop in deposit interest expense from lower rates post-federal funds cuts, despite fewer days in the quarter and softer loan yields; NIM expanded 4 basis points to 3.24% as total cost of funds fell to 2.10% with deposit costs at 1.78%. Noninterest income declined $6.2 million quarter-over-quarter mainly from lower leased equipment gains, while expenses rose modestly due to seasonal compensation increases offset by cuts in professional services. Provision for credit losses improved to $9.8 million from $12.5 million, maintaining ACL coverage at 1.12%. Balance sheet showed loan production of $2.1 billion at 6.65% average rate aiding remixing, average loans up 4% annualized, and noninterest-bearing deposits at 28.9% of total. Capital remains strong with CET1 at 10.18% and TBVPS up 10% YoY to $17.77. Management highlighted disciplined execution, NIM expansion, and capital deployment via $31.9 million share repurchases and $385 million subordinated debt redemption, positioning for ongoing earnings growth amid strong pipelines and asset repricing.