Banc of California, Inc. (BANC) Presents at Barclays 24th Annual Global Financial Services Conference Transcript

Banc of California, Inc. ( BANC ) Barclays 24th Annual Global Financial Services Conference September 15, 2026 2:00 PM EDT

Company Participants Jared Wolff - Chairman of the Board, President & CEO

Conference Call Participants Jared David Shaw - Barclays Bank PLC, Research Division

Jared David Shaw: Barclays Bank PLC, Research Division. Thanks, everybody. Good afternoon. We're happy to continue the Mid-Cap Bank schedule with Banc of California. We're joined by Jared Wolff, the Chairman and CEO. Thanks a lot for coming. And Karen Hon is in the audience as well with us as Deputy CFO. Thanks very much for coming, and look forward to having the conversation.

Jared Wolff: Chairman of the Board, President & CEO. Thank you, Jared. Thank you to Barclays. Really happy to be here.

Question-and-Answer Session

Jared David Shaw: Barclays Bank PLC, Research Division. Great. Maybe kicking it off, you took several significant balance sheet actions in the second quarter, including the securities repositioning and CRE loan sales. What were you trying to accomplish? And I guess, what evidence are you seeing that those actions are producing the intended results?

Jared Wolff: Chairman of the Board, President & CEO. The second quarter actions that we took were among the most significant we've taken since we merged Banc of California and PacWest in November of '23. We had over $2 billion of securities that were locked at a -- suboptimally priced at around 2% with a fairly long duration of 6 years plus. We were able to sell those securities and reinvest them at a 285 basis point pickup. And so it was a big lift to earnings. We have been fully reinvested since the beginning of this quarter. And so it's been really -- I think it will show up well this quarter. One of the ways that's going to show up is we gave guidance that our margin by the fourth