Company: BANC-PF
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001169770-25-000015
Chunk: 41

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 41
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al merger with PacWest Bancorp in 2023, which dramatically increased the size and scale of our business and multiplied our opportunities for success.

As we consistently communicated, our primary focus in 2024 was successfully executing on the integration milestones for the merger with PacWest and achieving the synergies that we projected for our combined institution. We successfully executed on our merger integration plan and achieved our cost savings targets ahead of schedule, while also continuing to reposition our balance sheet in ways that positively impacted our net interest margin and increased our capital levels. As a result of our successful execution on our merger integration and balance sheet repositioning efforts, we steadily increased our level of profitability while also further strengthening our balance sheet by increasing our level of liquidity and capital. At the same time, we continued to make investments in talent and technology that will further enhance our ability to generate profitable growth in the future.

Once we completed our integration milestones, we shifted our focus to more active marketing and business development efforts and capitalizing on the strong position we have built in our markets. In the second half of the year, our bankers did an excellent job of expanding existing client relationships and adding new clients that drove growth in both loans and deposits.

#### 40Banc of CaliforniaAnnual Proxy Statement2025
| Compensation Discussion and Analysis |

#### Key Accomplishments in 2024
Due to our strong execution, we achieved a number of key milestones in 2024, including the following:

• Increasing average noninterest-bearing deposits to 29.1% of total deposits from 22.6% in the prior year;

◦ We launched a firm-wide deposit incentive program in February 2024, which resulted in the addition of approximately 2,400 new noninterest bearing business deposit accounts and approximately $440 million in deposits since inception of the program.

• Expanding our net interest margin by 135 basis points year-over-year;

◦ By executing on our balance sheet repositioning efforts and growing our noninterest-bearing deposits, we were able to reduce our cost of funding to expand net interest margin and improve profitability.

#### •

#### Completing core systems conversion;
◦ In July 2024, we successfully completed our core systems conversion, improving the quality and consistency of customer experiences, and lowering operating expenses.

• Selling $1.95 billion of Civic loans and repositioning over $700 million of our securities portfolio;

• Reducing our noninterest expense by 36% from a normalized 4th quarter of 2023 as we achieved our