BANC OF CALIFORNIA, INC.BANC
BANC OF CALIFORNIA, INC. Earnings Per Share Disclosure
NOTE 17. EARNINGS (LOSS) PER SHARE
The following tables present the computation of basic and diluted net earnings (loss) per share for the years indicated:
| Year Ended December 31, 2025 | |||||||||||||||||||||||
| Non-Voting | |||||||||||||||||||||||
| Class B | Common | ||||||||||||||||||||||
| Voting | Non-Voting | Stock | |||||||||||||||||||||
| Common | Common | Equivalents | Total | ||||||||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||||||||||
Basic Earnings Per Share: (1) | |||||||||||||||||||||||
| Net earnings available to common and equivalent stockholders | $ | 179,149 | $ | 565 | $ | 9,471 | $ | 189,185 | |||||||||||||||
Less: Earnings allocated to unvested restricted stock (2) | (130) | — | — | (130) | |||||||||||||||||||
| Net earnings allocated to common and equivalent shares | $ | 179,019 | $ | 565 | $ | 9,471 | $ | 189,055 | |||||||||||||||
| Weighted average basic shares and unvested restricted stock outstanding | 151,456 | 477 | 8,001 | 159,934 | |||||||||||||||||||
| Less: weighted average unvested restricted stock outstanding | (127) | — | — | (127) | |||||||||||||||||||
| Weighted average basic shares outstanding | 151,329 | 477 | 8,001 | 159,807 | |||||||||||||||||||
| Basic earnings per share | $ | 1.18 | $ | 1.18 | $ | 1.18 | $ | 1.18 | |||||||||||||||
Diluted Earnings Per Share: (3) | |||||||||||||||||||||||
| Net earnings available to common and equivalent stockholders | $ | 179,149 | $ | 565 | $ | 9,471 | $ | 189,185 | |||||||||||||||
| Reallocation of net earnings as a result of conversion of NVCE to Voting Common | 9,471 | — | — | — | |||||||||||||||||||
| Reallocation of net earnings | 7 | (7) | 1,234 | — | |||||||||||||||||||
| Net earnings for diluted earnings per share | $ | 188,627 | $ | 558 | $ | 10,705 | $ | 189,185 | |||||||||||||||
| Weighted average diluted shares outstanding | 152,096 | 477 | 9,151 | 161,724 | |||||||||||||||||||
| Conversion on NVCE to Voting Common | 9,151 | — | — | — | |||||||||||||||||||
| Shares used in computation of diluted earnings per share | 161,247 | 477 | 9,151 | 161,724 | |||||||||||||||||||
| Diluted earnings per share | $ | 1.17 | $ | 1.17 | $ | 1.17 | $ | 1.17 | |||||||||||||||
______________________________
(1) Basic earnings per share is using the two-class method.
(2) Represents cash dividends paid to holders of unvested restricted stock, net of forfeitures, plus undistributed earnings available to holders of unvested restricted stock, if any.
(3) Diluted earnings per share is using the treasury method.
| Year Ended December 31, 2024 | |||||||||||||||||||||||
| Non-Voting | |||||||||||||||||||||||
| Class B | Common | ||||||||||||||||||||||
| Voting | Non-Voting | Stock | |||||||||||||||||||||
| Common | Common | Equivalents | Total | ||||||||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||||||||||
Basic Earnings Per Share: (1) | |||||||||||||||||||||||
| Net earnings available to common and equivalent stockholders | $ | 81,619 | $ | 246 | $ | 5,235 | $ | 87,100 | |||||||||||||||
Less: Earnings allocated to unvested restricted stock (2) | 58 | — | — | 58 | |||||||||||||||||||
| Net earnings allocated to common and equivalent shares | $ | 81,677 | $ | 246 | $ | 5,235 | $ | 87,158 | |||||||||||||||
| Weighted average basic shares and unvested restricted stock outstanding | 158,321 | 477 | 10,123 | 168,921 | |||||||||||||||||||
| Less: weighted average unvested restricted stock outstanding | (480) | — | — | (480) | |||||||||||||||||||
| Weighted average basic shares outstanding | 157,841 | 477 | 10,123 | 168,441 | |||||||||||||||||||
| Basic earnings per share | $ | 0.52 | $ | 0.52 | $ | 0.52 | $ | 0.52 | |||||||||||||||
Diluted Earnings Per Share: (3) | |||||||||||||||||||||||
| Net earnings allocated to common and equivalent shares | $ | 81,619 | $ | 246 | $ | 5,235 | $ | 87,100 | |||||||||||||||
| Weighted average diluted shares outstanding | 158,084 | 477 | 10,123 | 168,684 | |||||||||||||||||||
| Diluted earnings per share | $ | 0.52 | $ | 0.52 | $ | 0.52 | $ | 0.52 | |||||||||||||||
______________________________
(1) Basic earnings per share is using the two-class method.
(2) Represents cash dividends paid to holders of unvested restricted stock, net of forfeitures, plus undistributed earnings available to holders of unvested restricted stock, if any.
(3) Diluted earnings per share is using the treasury method.
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| Non-Voting | |||||||||||||||||||||||
| Class B | Common | ||||||||||||||||||||||
| Voting | Non-Voting | Stock | |||||||||||||||||||||
| Common | Common | Equivalents | Total | ||||||||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||||||||||
| Basic Loss Per Share: | |||||||||||||||||||||||
| Net loss available to common and equivalent stockholders | $ | (1,917,121) | $ | (920) | $ | (20,884) | $ | (1,938,925) | |||||||||||||||
Less: Earnings allocated to unvested restricted stock (1) | — | — | — | — | |||||||||||||||||||
| Net loss allocated to common and equivalent shares | $ | (1,917,121) | $ | (920) | $ | (20,884) | $ | (1,938,925) | |||||||||||||||
| Weighted average basic shares and unvested restricted stock outstanding | 85,603 | 40 | 920 | 86,563 | |||||||||||||||||||
| Less: weighted average unvested restricted stock outstanding | (1,169) | — | — | (1,169) | |||||||||||||||||||
| Weighted average basic shares outstanding | 84,434 | 40 | 920 | 85,394 | |||||||||||||||||||
| Basic loss per share | $ | (22.71) | $ | (22.71) | $ | (22.71) | $ | (22.71) | |||||||||||||||
Diluted Loss Per Share: (2) | |||||||||||||||||||||||
| Net loss allocated to common and equivalent shares | $ | (1,917,121) | $ | (920) | $ | (20,884) | $ | (1,938,925) | |||||||||||||||
| Weighted average diluted shares outstanding | 84,434 | 40 | 920 | 85,394 | |||||||||||||||||||
| Diluted loss per share | $ | (22.71) | $ | (22.71) | $ | (22.71) | $ | (22.71) | |||||||||||||||
______________________________
(1) Represents cash dividends paid to holders of unvested restricted stock, net of forfeitures, plus undistributed earnings available to holders of unvested restricted stock, if any.
(2) Diluted earnings per share is using the two-class method.
The following table presents the weighted average outstanding restricted shares and warrants that were not included in the computation of diluted earnings (loss) per share because their effect would be anti-dilutive for the years ended December 31, 2025, 2024, and 2023:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
(In thousands) | |||||||||||||||||
| Restricted stock awards and units | 127 | 480 | 1,169 | ||||||||||||||
| Warrants | — | 18,902 | 1,605 | ||||||||||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.