Company: BANC-PF
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001169770-25-000015
Chunk: 54

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 54
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 |                                       |  0 | % |
| Qualitative Considerations        |     |                    |  25 | % |     |                       |     |                                    |     |                        |     |                      |     |                       | 100 | % |                                       | 25 | % |
| Total payout                      |     |                    | 100 | % |     |                       |     |                                    |     |                        |     |                      |     |                       |     |   |                                       | 75 | % |

As a result of the calculation presented above and described below, the aggregate payout percentage earned under the performance metrics for 2024 was 75%.

• The Company's performance in Core Return on Average Tangible Common Equity, which had a target weighting of 35%, was below the threshold level of performance. Accordingly, no payout was earned with respect to that performance objective.

• The Company's Core Adjusted Noninterest Expense, which had a target weighting of 25%, exceeded the target maximum level of performance. Accordingly, a payout at 200% of the target weighting, or 50%, was earned with respect to that performance objective.

• The Company's Average Noninterest-Bearing Deposits Growth, which had a target weighting of 15%, was below the threshold level of performance. Accordingly, no payout was earned with respect to that performance objective.

• For the Qualitative Consideration component, which had a target weighting of 25%, the CNG Committee determined, based on the Company's overall level of performance in 2024 and accomplishment of key strategic goals, that a payout of 100% of the target weighting, equal to 25%, was earned with respect to that component. In making this determination, the CNG Committee considered the executive team's successful completion of key strategic actions including continued balance sheet repositioning, sale of $1.95 billion of Civic loans, core systems conversion and other merger integration milestones. The CNG Committee also considered the Company's progress in expanding net interest margin, increasing noninterest bearing deposits, reducing noninterest expense, and growing tangible book value per share as well as the Company's annual relative total shareholder return compared to KRX peers.

In addition to the overall determination of the component calculations for the NEO group, the CNG Committee, in consultation with the Chief Executive Officer, determined to adjust downward the overall 75% payout level to certain of the NEOs for their individual or business unit's performance in 2024. Accordingly, the cash incentive amounts awarded for 2024 to