Company: BANC-PF
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001169770-25-000015
Chunk: 94

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 94
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 comprised solely of independent directors pursuant to the Company’s and the Bank’s Related Party Transactions Policy. The Related Party Transactions Policy, which is in writing, seeks to ensure that any such transactions entered into by the Company are in, or not inconsistent with, the best interests of the Company and its stockholders. Additionally, the Company and the Bank have an Outside Business Activity Policy, which tightens controls on outside business activities of officers and employees and requires non-employee directors to refrain from engaging in outside business activities that create an actual or apparent conflict of interest. These two policies are further described below.

#### Related Party Transaction Policy
All related party transactions, as defined under the policy and other than certain pre-approved transactions, must be approved in advance by the CNG Committee. Related party transactions are broadly construed under the policy to include any transaction where the aggregate amount involved will exceed or is expected to exceed $120,000 in any calendar year in which a related party or a family member of a related party has a direct or indirect material interest.

The policy provides that in reviewing related party transactions, the CNG Committee should consider the following factors:

• Are the terms of the related party transaction arm’s length and no more favorable to the related party or the related party’s family member than terms generally available to an unaffiliated third party?

• What is the financial risk to the Company of the related party transaction?

• What is the reputational risk to the Company from public disclosure of the related party transaction?

• Would participation in the related party transaction materially impair the ability of the related party to faithfully discharge his or her duties to the Company?

• Is the related party transaction in (or not inconsistent with) the best interests of the Company and its stockholders?

The policy further provides that in reviewing proposed loans to related parties, their family members and any entity in which the related party or their family members have a material interest, the CNG Committee should consider the following criteria:

• Will the loan be made in the ordinary course of the Bank’s business?

• Does the loan involve a material risk of collectability or other unfavorable features?

• Loans to directors and certain officers must comply with Regulation O of the Board of Governors of the Federal Reserve System.

• The loan must not violate the Sarbanes-Oxley Act of 2002 or any other applicable laws.

The policy states that the CNG Committee will prohibit a related party transaction if it determines it to be inconsistent with the interests of the Company and its stockholders.

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