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• A regional Bank of America, specifically serving businesses and individuals within California.
• The California-focused version of a traditional bank like Wells Fargo, but operating exclusively within the state.

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• Commercial Real Estate Lending: Provides financing for the acquisition, development, and refinancing of various income-producing commercial properties.
• Commercial & Industrial (C&I) Lending: Offers loans and lines of credit to businesses for working capital, equipment purchases, expansion, and other operational needs.
• Treasury Management Services: Delivers a suite of cash management and payment solutions to help businesses optimize their financial operations and manage liquidity.
• Deposit Accounts: Offers a variety of checking, savings, money market, and certificate of deposit accounts for both business and individual clients.
• Private Banking: Provides personalized financial services, including specialized lending and wealth management solutions, for high-net-worth individuals and families.

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Banc of California (BANC) Major Customers

Banc of California is a commercial bank that primarily serves businesses and individuals with a range of financial products and services. As such, it does not have "major customers" in the traditional sense of a few large companies purchasing its products. Instead, its customer base is diversified across several categories.

Based on their business model, Banc of California's primary customer categories include:

• Commercial Businesses: This category encompasses a wide range of small to middle-market businesses across various industries. Banc of California provides them with commercial loans, lines of credit, treasury management services, and other business banking solutions to support their operations and growth.

• Commercial Real Estate Investors and Developers: The bank has a significant focus on commercial real estate lending, serving investors and developers involved in various property types, including multifamily, office, retail, and industrial properties.

• High-Net-Worth Individuals and Private Banking Clients: Banc of California offers private banking services tailored to affluent individuals, families, and their businesses, providing specialized financial advice, wealth management, and personalized banking solutions.

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• nCino, Inc. (Symbol: NCNO)
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Jared Wolff, Chairman, Chief Executive Officer and President

Jared Wolff joined Banc of California in March 2019. He is a veteran California banking executive with extensive experience in finance, law, and risk management. Prior to his current role, he served as Executive Vice President and General Counsel at City National Bank, a subsidiary of Royal Bank of Canada. Before City National, Mr. Wolff was President and a Board Member of Pacific Western Bank, a subsidiary of PacWest Bancorp. During his time at PacWest, he oversaw more than 20 acquisitions, notably the $2.3 billion acquisition of CapitalSource. Mr. Wolff also oversaw Banc of California's acquisition of PacWest Bancorp in 2023. He began his career at the law firm Sullivan & Cromwell LLP.

Joseph Kauder, Executive Vice President, Chief Financial Officer

Joseph Kauder was appointed Chief Financial Officer of Banc of California, effective July 10, 2023. He possesses over 30 years of experience in the banking and financial services industry, including more than 15 years in executive finance positions at Wells Fargo Corporation. Most recently, he served as Executive Vice President and Chief Financial Officer for Wells Fargo's Commercial Banking Segment. Before that, he was Chief Financial Officer and Chief Accounting Officer of Wells Fargo's Wholesale Banking Segment. Mr. Kauder's earlier career included roles as Senior Vice President, Director of Accounting Policy at Wachovia Corporation, and he began his career at PricewaterhouseCoopers LLP, also holding finance positions at GE Capital. Since departing Wells Fargo in 2021, he has been involved with a start-up blockchain company and as an Industry Advisor.

Hamid Hussain, President, Commercial and Community Banking

Hamid Hussain serves as President of Banc of California, where he is responsible for the overall strategy, goals, and execution of the Bank's client-facing teams. He brings over 30 years of experience in financial services, capital markets, and corporate finance. Prior to joining Banc of California, Mr. Hussain spent 10 years at Wells Fargo Bank, where he was Executive Vice President, Real Estate Market Executive in the Commercial Banking group, leading a national team of senior banking professionals.

Bryan Corsini, Executive Vice President, Chief Credit Officer

Bryan Corsini is the Executive Vice President and Chief Credit Officer for Banc of California, with over 36 years of leadership experience in the financial services industry. From April 2014 to December 2023, he held the position of Executive Vice President and Chief Credit Officer at PacWest Bancorp and Pacific Western Bank. Before his tenure at PacWest Bancorp, Mr. Corsini served as Executive Vice President and Chief Administrative Officer of CapitalSource Bank from October 2011 to April 2014.

Ido Dotan, Executive Vice President, General Counsel and Chief Administrative Officer

Ido Dotan serves as Executive Vice President, General Counsel and Chief Administrative Officer for Banc of California. He holds a bachelor's degree in business administration from the University of Southern California, Marshall School of Business, and a juris doctorate from the University of Southern California, Gould School of Law.

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The key risks to Banc of California's (BANC) business include its exposure to economic downturns and interest rate fluctuations, intense competitive market pressures, and potential liquidity risks associated with its funding structure.

1. Economic Downturns and Interest Rate Fluctuations: Banc of California operates in an economic environment susceptible to shifts and changes in interest rates. The bank's financial performance is closely tied to the broader economic health, including the real estate market, which can influence loan demand and credit quality. Fluctuations in interest rates can significantly impact the bank's net interest margin and overall profitability.
2. Competitive Market Pressures: The banking industry, particularly in California where Banc of California operates, is highly competitive. This intense competition makes it challenging for the bank to effectively gather deposits and achieve loan growth, especially as it targets mid-single-digit loan growth.
3. Potential Liquidity Risks: Banc of California's reliance on brokered deposits, which totaled $2.9 billion as of June 30, 2025, presents a potential liquidity risk. The uncertain and competitive nature of brokered deposits could pose challenges for liquidity management, especially during volatile market conditions.

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Stress in the commercial real estate (CRE) loan portfolio due to higher interest rates, reduced demand for office space, and maturing loans facing refinancing challenges, posing a risk to asset quality and capital.

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The addressable markets for Banc of California's main products and services, primarily within the California region, are detailed below:

• Commercial and Business Banking (California): The Commercial Banking industry in California is projected to have a market size of approximately $125.7 billion in 2025. This market has been growing at an average annual rate of 7.1% from 2020 to 2025. Banc of California focuses on providing banking and treasury management services to small-, middle-market, and venture-backed businesses.
• Residential Mortgage Lending (California): While a single total market value for residential mortgages in California is not explicitly stated, the market saw significant activity. In 2021, there was $1.4 trillion in residential mortgage loan originations in California. In the fourth quarter of 2020, 929,500 Californians took on new mortgages, though this number sharply declined to an estimated 95,000 by the first quarter of 2023. The average mortgage loan size in California increased from $468,000 in Q4 2020 to approximately $594,000 in Q1 2023. Nonbank lenders now control over 60% of the mortgage market across the country, including 9 out of the top 15 lenders in California in 2022 and 2023.
• Deposit Market (California): As of December 31, 2024, the 50 largest banks headquartered in Southern California collectively held $412 billion in assets. Total deposits in California experienced a decline of $375.31 billion, or 16.8%, between June 30, 2023, and the second quarter of 2022. A more recent aggregate figure for the entire state's deposit market size for a current year is not explicitly available in the provided search results.
• Specialty Banking and Other Products (California and potentially nationwide): Banc of California offers various specialty banking services (e.g., Entertainment, Healthcare, Education, Homeowners Association, Accountants and CPAs, Attorneys and Firms, Nonprofit Organizations), real estate banking (multifamily and commercial, warehouse lending, construction banking), personal banking, and payment processing solutions. Specific addressable market sizes for each of these niche services or individual personal banking products are not readily available as separate figures and are generally encompassed within the broader commercial and personal banking market segments. Banc of California does have branches in California, Denver, Colorado, and Durham, North Carolina, and regional offices nationwide.

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Here are 3-5 expected drivers of future revenue growth for Banc of California (BANC) over the next 2-3 years:

1. Net Interest Income and Margin Expansion: Banc of California anticipates continued growth in its net interest income and an expanding net interest margin (NIM), with a target range of 3.20% to 3.30% for Q4 2025 and a potential jumping-off point of 3.25% to 3.35% in 2026. This growth is expected to be driven by higher average yields on new loan production and a decrease in deposit costs, along with a favorable shift in the funding mix. The company's effective management of interest-earning assets and liabilities, along with lower interest paid on interest-bearing deposits due to federal funds rate cuts, contribute to this expansion.
2. Loan Growth and Market Opportunity in California: The bank expects mid-single-digit loan growth for the full year 2025. There is optimism regarding loan demand, particularly within California's real estate markets, and through various lending channels. Banc of California aims to capitalize on dislocation within the California banking landscape to secure new client relationships and expand its loan portfolio.
3. Core Deposit Growth and Optimization: A significant focus for revenue growth is the expansion of core deposits, particularly noninterest-bearing deposits, which increased by 9% annualized in Q3 2025 and represented 28% of total deposits. This strategy helps to reduce the overall cost of funds and improve the net interest margin. The company's strategic focus on deepening client relationships is key to this deposit growth.
4. Digital Innovation and Enhanced Customer Acquisition: Investments in technology, including digital account opening and data harmonization, are expected to accelerate the attraction of new customers and reduce acquisition and operating costs. This digital pivot is intended to drive improved efficiency and expand core deposit growth, ultimately supporting sustained earnings growth.
5. Strategic Talent Acquisition and Client Base Expansion: Banc of California is actively recruiting high-quality talent to support its growth initiatives and expand its client base. By leveraging its strong market position in California, the bank aims to win new relationships and enhance profitability through a growing commercial customer base.

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1. Share Repurchases
   • In Q1 2025, Banc of California expanded its share buyback program to $300 million, having repurchased $150 million in shares by that quarter.
   • The Board of Directors authorized a $150 million stock repurchase program in March 2025, which expires in March 2026.
   • The company repurchased $35 million of shares in Q3 2025, contributing to a year-to-date total of $185 million, representing 8.1% of outstanding shares.
2. Share Issuance
   • Concurrent with the merger with PacWest Bancorp on November 30, 2023, Banc of California completed a $400 million equity capital raise.
   • The Amended and Restated 2018 Stock Incentive Plan authorizes grants of stock-based compensation instruments for up to 10,717,882 shares.
3. Inbound Investments
   • In connection with the PacWest Bancorp merger on November 30, 2023, Banc of California received a $400 million equity capital raise from affiliates of Warburg Pincus LLC and investment vehicles sponsored or advised by Centerbridge Partners, L.P.
4. Outbound Investments
   • Banc of California completed the acquisition of PacWest Bancorp for $1.04 billion on November 30, 2023.
   • The company made four acquisitions between 2021 and 2022, including Pacific Mercantile Bank in October 2021, DeepStack in September 2022 for $24 million, and Global Payroll Gateway in October 2022.
   • Banc of California strategically divested non-core loan portfolios in 2023, including its National Construction and Lender Finance portfolios, and sold $507 million in commercial real estate loans in Q2 2025.
5. Capital Expenditures
   • Capital expenditures were reported as -$13.05 million in fiscal year 2024, -$15.22 million in fiscal year 2023, and -$120.86 million in fiscal year 2022.