<div id="readability-page-1"><div>Fitch Ratings-New York-05 December 2025:Fitch Ratings has affirmed the Long- and Short-Term Issuer Default ratings for Banc of California, Inc. (BANC) and its subsidiary, Banc of California (BofC) at 'BBB-/ F3'. The Rating Outlook for both is Stable.Key Rating DriversBusiness Focused on Core Operations: BANC has made strides to simplify its operations and reposition its balance sheet, shedding transactional non-core assets. These efforts allow the bank to execute on its core relationship-driven community banking model, and position it for growth.Business Transformation Largely Completed: BANC has largely consolidated assets and operations acquired in the PacWest merger, turning its focus on building critical mass in its core footprint, strategically leveraging market dislocations to add talent both at the banker and executive level. Recent M&amp;A activity within its core market with likely continue to present these opportunities while also potentially increasing the intensity of competition for small to medium sized commercial clients that are BANC's focus.Risk Profile Commensurate with Rating: Fitch believes BANC has effectively managed the risk associated with the integration of a notably larger institution. The bank has also prudently managed growth during the transition period. This is balanced by a CRE concentration level relative to risk-weighted assets that is among the highest of midtier regional peers. Additionally, BANC has notable exposure to NDFI totaling 18% of total loans; however, we note that lower risk mortgage warehouse and fund finance loans, comprised mostly of capital lines, account 65% of NDFI lending exposure.Credit Quality Normalizing: Asset quality continues to normalize from cyclical lows, with the ratio of impaired loans of 2.53% at 3Q25, increasing from 1.54% at YE 2024. This increase has largely been due to the increase in modified loans. Despite this, Fitch notes that YTD 3Q25 net charge-offs have declined to 0.31% from 0.35% of loans over the same period. Fitch's assessment of asset quality also reflects BANC's loan concentrations, including CRE, which is at 264% of risk-based capital. With the bulk of post-merger balance sheet restructuring completed, Fitch expects asset quality metrics to continue to perform within the parameters of its assigned rating.Profitability Improving: BANC's profitability remains lower than peers, but has improved, excluding extraordinary charges, with the net interest margin benefitting from improved loan yields and lower funding costs, supported by the 2024 restructuring of its investment portfolio. The NIM is also supported by deposit costs among the lowest of peers. The bank's efficiency ratio continues to improve at 62%, down from 73% for 2024, but still lags peers. Fitch expects profitability to continue improving incrementally through better operating leverage post-merger and continued NIM expansion from loan repricing and purchase accounting accretion.Capital Levels Adequate: BANC's common equity Tier 1 (CET1) ratio of 10.14% at 3Q25 is adequate but remains lower compared to Fitch's midsized regional peer median of 12.14%, particularly considering its higher concentration in CRE. Tangible capital levels are also somewhat lower than peers, but to lesser degree than risk-based metrics. Nonetheless, Fitch views the bank's current capital levels as adequate and aligned with its rating, particularly given expectations of moderate loan growth.Improving Funding and Liquidity Profile: BANC has improved its funding and liquidity profile, managing down the loan-to-deposit ratio below 90%. At 2.09% for 3Q25, BANC's cost of deposits is better than peers, aided by its proportion of non-interest-bearing deposits at 28%, which is also better than peers. Fitch views BANC's access to secondary liquidity sources as sufficient to meet contingent needs.BANC's Viability Rating (VR) is equalized with the VR of its subsidiary, Banc of California (BofC, BBB-/Stable), due to sufficient liquidity management. BANC's common-equity double leverage is below the threshold of 120%, and Fitch believes this level is likely to remain stable or decline should rates continue to drop, which would positively impact unrealized losses in the available-for-sale securities portfolio.Fitch also believes BANC maintains a sufficient liquidity buffer at the holding company to cover upcoming cash outflows. However, this buffer has become thinner and therefore less of a mitigant if double leverage were to rise above 120%.Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade-- Considering BANC's higher CRE concentration, its ratings are sensitive to the bank's approach to capital management. BANC's ratings and the Outlook could be pressured by the CET1 ratio dipping below 9.5% for multiple quarters without a credible plan to rebuild it;-- NCOs increasing materially beyond those of similarly rated peers or NCOs exceeding 100 bps over four quarters could pressure the rating;-- Although not expected material deterioration in BANC's funding profile, evidenced by an increase in the loan-to-deposit ratio above 100% and/or a significant increase in brokered deposits, could pressure the rating;-- Holding company ratings could be notched lower if common-equity double leverage were to exceed 120% and liquidity coverage were to decline below 1x full year debt and dividend obligations on a sustained basis.Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade-- Over the medium to long term, a Positive rating Outlook or higher ratings could be achieved via greater revenue diversity, with a higher proportion of non-interest income, and improved profitability performance in-line with higher-rated peers;-- Capital at levels above those of similarly constituted banks or meaningful reductions in loan concentrations that offset lower capital levels could result in positive rating action;-- Sustained improvement in the loan-to-deposit ratio and/or lower reliance on non-core funding, including brokered deposits, could support positive rating action.OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERSBofC's long-term deposits are rated one notch above its Long-Term IDR, because U.S. uninsured deposits benefit from depositor preference, which gives deposit liabilities superior recovery prospects in the event of default. BofC's short-term deposits are rated 'F3' in accordance with Fitch's &#34;Bank Rating Criteria&#34; and based on BofC's long-term deposit rating and Fitch's assessment of BANC funding and liquidity profile.Subordinated debt ratings for BANC and BofC of 'BB+' reflect one notch for loss severity. In accordance with Fitch's Bank Rating Criteria, this is based on alternate notching to the base case of two notches, due to our view of U.S. regulators' resolution alternatives for an entity like BANC as well as early intervention options available to banking regulators under U.S. law. BANC's preferred stock rating of 'B+' is notched four levels below its VR, two times for loss severity and two times for non-performance.OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIESThe long- and short-term deposit ratings are sensitive to any change to BofC's Long- and Short-Term IDR. Its short-term deposit rating is also sensitive to Fitch's assessment of BofC's funding and liquidity profile.The ratings for BANC and BofC's subordinated debt are sensitive to any change to the VR, as is BANC's preferred stock rating.VR ADJUSTMENTSThe asset quality score has been assigned below the implied score due to the following adjustment reason: concentrations (negative).The earnings and profitability score has been assigned above the implied score due to the following adjustment reason: historical and future Metrics (positive).The capitalization and leverage score has been assigned above the implied score due to the following adjustment reason: risk profile and business model (negative)The funding and liquidity score has been assigned below the implied score due to the following adjustment reason: deposit structure (negative).Criteria VariationNoneREFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. ESG ConsiderationsThe highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.Banc of California, Inc; Long Term Issuer Default Rating; Affirmed; BBB-; Rating Outlook Stable; Short Term Issuer Default Rating; Affirmed; F3; Viability Rating; Affirmed; bbb-; Government Support Rating; Affirmed; ns----subordinated; Long Term Rating; Affirmed; BB+----preferred; Long Term Rating; Affirmed; B+Banc of California; Long Term Issuer Default Rating; Affirmed; BBB-; Rating Outlook Stable; Short Term Issuer Default Rating; Affirmed; F3; Viability Rating; Affirmed; bbb-; Government Support Rating; Affirmed; ns----subordinated; Long Term Rating; Affirmed; BB+----long-term deposits; Long Term Rating; Affirmed; BBB----short-term deposits; Short Term Rating; Affirmed; F3Contacts:Primary Rating AnalystAnthony Di Tomasso,Associate Director+1 646 582 4491anthony.ditomasso@fitchratings.comFitch Ratings, Inc.Hearst Tower 300 W. 57th StreetNew York, NY 10019Secondary Rating AnalystPatrick Yu,Director+1 212 908 0209patrick.yu@fitchratings.comCommittee ChairpersonMark Narron,Senior Director+1 212 612 7898mark.narron@fitchratings.comMEDIA RELATIONS: Cristina Bermudez, New York, Tel: +1 212 612 7892, Email: cristina.bermudez@thefitchgroup.comAdditional information is available on www.fitchratings.comADDITIONAL DISCLOSURESDodd-Frank Rating Information Disclosure FormSolicitation StatusAdditional Disclosures For Unsolicited Credit RatingsEndorsement StatusEndorsement PolicyALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. 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BANC

Fitch Ratings has affirmed Banc of California, Inc.'s Long- and Short-Term Issuer Default ratings at 'BBB-/F3' with a Stable Outlook. The bank has simplified operations, improved profitability, and managed risks post-PacWest merger. Asset quality is normalizing, and funding/liquidity profiles have improved. However, high CRE concentration and lower capital levels compared to peers remain concerns. Ratings could be pressured by capital management issues, increased NCOs, or deteriorating funding profiles.

Fitch Affirms Banc of California, Inc. at 'BBB-'; Outlook Stable