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BANC OF CALIFORNIA , INC . Banc of California Reports Third Quarter 2021 Financial Results SANTA ANA , Calif . , ( October 21 , 2021 ) -Banc of California , Inc. ( NYSE : BANC ) today reported net income of $ 23.2 million and net income available to common stockholders for the third quarter of 2021 of $ 21.4 million , or diluted earnings per common share of $ 0.42 . Highlights for the third quarter included : Return on average assets of 1.13 % Annualized loan growth , excluding PPP , of 16 % Period - end total cost of deposits of 0.08 % , a 12 basis point decrease from the end of the second quarter Average cost of total deposits of 0.15 % , an 8 basis point decrease from the previous quarter Net interest margin of 3.28 % , a 1 basis point increase from the previous quarter Noninterest - bearing deposit balances represented 32 % of total deposits at September 30 , 2021 , up from 24 % a year earlier Allowance for credit losses at 1.26 % of total loans and 173 % of non - performing loans Total deferrals / forbearances declined to $ 54.2 million at September 30 , 2021 from $ 86.6 million at June 30 , 2021 Common Equity Tier 1 capital at 10.89 % Jared Wolff , President & CEO of Banc of California , commented , " Our third quarter results demonstrate the greater earnings power and improved profitability we have generated over the past two years as we continue to accelerate our growth in earning assets and increase operating leverage . Our teams continue to bring in high quality relationships throughout California and we are seeing a significant increase in commercial & industrial loan production , which helped generate a 16 % annualized increase in total loans , excluding Paycheck Protection Program loans . Our deposit engine also continues to be highly productive in attracting new clients and expanding relationships with existing clients , which resulted in a 17 % increase in noninterest - bearing deposits from the end of the prior quarter . " Mr. Wolff continued , " Our loan and deposit pipelines remain strong and we expect to see a continuation of the positive trends that have led to our improved profitability . The system conversion for Pacific Mercantile is planned for November and we expect to have most of the cost savings in place by the end of the year . This will put us on track to fully realize the accretive benefits of this transaction starting in 2022. Combined with the strong organic growth that we are generating , we are well - positioned to continue delivering a higher level of earnings and returns . " Lynn Hopkins , Chief Financial Officer of Banc of California , said , " We continue to execute well on our strategic initiatives , which is resulting in positive trends across most of our key metrics . Our cost of deposits continues to decline , our net interest margin is increasing , our efficiency ratio is improving , and our non - performing loans are declining . We continue to have a high level of liquidity , capital and reserves , which positions us well to continue supporting the profitable growth of our franchise . Along with our continued organic growth and the synergies to be realized from the Pacific Mercantile Bancorp acquisition , we also have additional opportunities to reduce our deposit costs as we continue to improve our mix of deposits and , subject to regulatory approval , redeem preferred stock that will further accelerate earnings growth . " 1