...Banc of California's underlying franchise entered the second half of 2026 with continued balance sheet momentum, although reported first-half earnings were materially affected by the 2Q26 strategic repositioning. Six-month net interest income rose 6.2% year over year to $502.1 million from $472.6, reflecting lower deposit interest expense and slightly higher total period end loans. Modest deposit growth of 1% through 2Q26 saw the loan-to-deposit ratio decline modestly to 89.3% from 90.6% at YE 2025. Management expects mid-single-digit loan growth in the second half, with deposit growth remaining moderately below loan growth. Portfolio growth is increasingly concentrated in lender finance, single-family residential and fund finance, while lower-return legacy CRE balances are reduced, with CRE a significant portion of the loans slated for sale as part of the balance sheet restructuring. The 2Q26 restructuring was intended to improve recurring earnings, reduce interest rate and credit-risk...
