Banc of California Creates Charitable Fund and Commits $1 Million to Support Southern California Communities Affected by Wildfires

Rhea-AI Summary

Banc of California (NYSE: BANC) has launched the Banc of California Wildfire Relief & Recovery Fund with a $1 million initial donation to support communities affected by Los Angeles area wildfires. The fund will address immediate disaster relief needs and long-term rebuilding of communities, homes, businesses, and infrastructure.

The bank will establish an advisory board of business and civic leaders to guide fund allocation and develop specific lending programs for recovery efforts. The initiative includes matching employee donations and accepting public contributions through their website at Bancofcal.com/SoCalRelief.

Regarding wildfire impact, the bank reports that while some employees have been displaced and are receiving support, only two branches are temporarily closed. Four commercial and three residential properties in their loan portfolio have been damaged or destroyed, though all have insurance coverage. The bank states no material impact on its loan portfolio has been observed to date.

Positive

• All damaged loan portfolio properties (4 commercial, 3 residential) are covered by insurance
• No material impact reported on loan portfolio from wildfires
• Bank facilities largely unaffected with only 2 branches temporarily closed

Negative

• Multiple bank employees displaced by wildfires requiring financial support
• Some collateral properties in loan portfolio damaged or destroyed

Insights

Financial Analyst

The establishment of a $1 million wildfire relief fund by Banc of California represents a strategic community investment that balances corporate social responsibility with business risk management. This initiative demonstrates proactive risk mitigation for their loan portfolio, particularly important given their significant presence in the affected region. The bank's confirmation of minimal impact on their loan portfolio - with only 7 properties affected and all having insurance coverage - suggests strong risk management practices and financial exposure to the wildfires.

From a business perspective, this move strengthens BANC's market position as the largest independent bank in Los Angeles, potentially leading to enhanced customer loyalty and new business opportunities during the reconstruction phase. The creation of an advisory board with business and civic leaders indicates a well-structured approach to fund management and positions the bank to develop targeted lending programs for recovery efforts, which could generate new revenue streams while supporting community rebuilding.

Risk Management Expert

The bank's detailed disclosure about their exposure to wildfire damage reveals robust risk assessment protocols. With only four commercial and three residential properties affected, all with insurance coverage, the immediate financial impact appears minimal relative to their total portfolio. The proactive client outreach strategy and employee support measures demonstrate strong operational resilience planning.

The temporary closure of two branches in evacuation areas shows appropriate risk-based decision-making while maintaining business continuity. The establishment of clear communication channels through their website and dedicated relief fund page indicates well-structured crisis management. This comprehensive response suggests BANC has implemented effective enterprise risk management strategies, which should positively influence investor confidence in their ability to navigate regional environmental challenges.

Market Research Analyst

This initiative positions BANC strategically in the competitive Southern California banking landscape. By taking a leadership role in wildfire relief efforts, the bank is likely to strengthen its brand equity and community relationships, particularly valuable given their status as the largest independent bank in Los Angeles. The matching donation program for employees and public donation capability creates a multiplier effect that could significantly increase the fund's impact beyond the initial $1 million commitment.

The development of specialized lending programs for recovery efforts represents a potential growth opportunity in a market segment that will likely see increased demand. This combination of community support and business development demonstrates sophisticated market positioning that could yield long-term benefits for shareholder value.

The Banc of California Wildfire Relief & Recovery Fund Will Support Southern California With Disaster Relief and Rebuilding Efforts

Advisory Board of Business and Civic Leaders to be Created to Ensure the Funds are Directed in a Way That Will Have the Greatest Impact

LOS ANGELES--(BUSINESS WIRE)-- Banc of California, a wholly owned subsidiary of Banc of California, Inc. (NYSE: BANC), announced it has launched the Banc of California Wildfire Relief & Recovery Fund, which will support ongoing relief and rebuilding efforts for Southern California communities devastated by the wildfires in the Los Angeles area.

This charitable fund will be seeded with a $1 million donation from Banc of California and represents the bank’s commitment to supporting its communities and taking a leadership role in helping them triumph over the tragedy that has impacted our communities.

Through this charitable fund, the bank will address urgent, ongoing disaster relief and recovery needs, as well as longer term rebuilding of communities, homes, businesses and infrastructure impacted by this unprecedented disaster in the Los Angeles region. The bank will also be matching donations from its team members as well as accepting donations more broadly from the public. Banc of California has created a dedicated page on its website for the fund located at Bancofcal.com/SoCalRelief and will update the page regularly with resources and links to inform and help the community.

Banc of California will also create an advisory board for the fund, including business and civic leaders, who can help support and lead recovery efforts and ensure the funds are directed in a way that will have the greatest impact. In consultation with this advisory board, Banc of California will also develop lending programs focusing on recovery efforts.

“As the largest independent bank based in Los Angeles, Banc of California is committed to doing all we can to help our community recover from these tragic fires. We are creating this fund in part because of our unique position in the community and because of the significant outpouring of inquiries we have received from those across our country wanting to help Los Angeles,” said Jared Wolff, CEO of Banc of California and a native Angeleno. “We all have family, friends, colleagues and clients who are suffering from these devastating wildfires. We are truly grateful for the first responders who are working heroically and tirelessly to save our communities. The well-being of everyone affected by these fires remains at the front of our hearts and minds. As a bank that deeply values relationships, we are dedicated to being there for our clients every step of the way and helping to rebuild our communities stronger than ever before.”

Update on Wildfire Impact to Banc of California

In addition to creating the Banc of California Wildfire Relief & Recovery Fund, the bank is providing updates and taking the following actions to support the Los Angeles community:

• Many Banc of California team members have been displaced as a result of the wildfires. The bank is supporting those affected with temporary housing, rental cars, stipends and other needs. The bank also offers 24/7 confidential counseling and wellness support.

• Team members are proactively reaching out to clients during this critical time to offer assistance from the bank. If you are a Banc of California client whose financial situation has been adversely affected by the fires, please reach out to your relationship manager or to our client care line at 877-770-BANC (2262) for assistance.

• To date, Banc of California has not experienced any damage to its facilities or properties. As of this time, there are two branches that are temporarily closed due to proximity to evacuation areas. The bank is regularly evaluating conditions and adjusting branch hours as necessary to protect the health and safety of our team members and clients. Please visit the bank’s website for any information about temporary branch closures: Temporary Closures | Banc of California.

• As of this release, we are not aware of any material impact on our loan portfolio or collateral due to the Southern California wildfires. We are currently aware of four commercial properties and three residential properties that have been damaged or destroyed, but all such collateral has insurance coverage in place. The situation is still evolving, and we continue to monitor it for potential exposure.

Please visit Bancofcal.com/SoCalRelief to learn more and to support the Banc of California Wildfire Relief & Recovery Fund.

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) is a bank holding company with over $33 billion in assets and the parent company of Banc of California. Banc of California is the largest independent bank headquartered in Los Angeles and the third largest bank headquartered in California. Banc of California is one of the nation’s premier relationship-based business banks, providing banking and treasury management services to small-, middle-market, and venture-backed businesses. Banc of California is the third largest bank headquartered in California and offers a broad range of loan and deposit products and services through 80 full-service branches located throughout California and in Denver, Colorado, and Durham, North Carolina, as well as through regional offices nationwide. The bank also provides full-stack payment processing solutions through its subsidiary, Deepstack Technologies, and serves the Community Association Management industry nationwide with its technology-forward platform, SmartStreet™. The bank is committed to its local communities by supporting organizations that provide financial literacy and job training, small business support, affordable housing, and more. For more information, please visit us at www.bancofcal.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250114964732/en/

Media Contact

Debora Vrana

EVP, Chief Communications Officer

Banc of California

213-999-4141

Deb.vrana@bancofcal.com

Source: Banc of California, Inc.

FAQ

How many properties in BANC's loan portfolio were damaged by the Southern California wildfires?

Seven properties in total: four commercial properties and three residential properties in BANC's loan portfolio were damaged or destroyed by the wildfires, though all have insurance coverage.

How many BANC branches were closed due to the Southern California wildfires?

Two Banc of California branches were temporarily closed due to their proximity to evacuation areas.

What is the size of BANC's Wildfire Relief & Recovery Fund initial commitment?

Banc of California committed $1 million as an initial seed donation to the Wildfire Relief & Recovery Fund.

How will BANC's Wildfire Relief & Recovery Fund be managed?

The fund will be managed with guidance from an advisory board of business and civic leaders to ensure funds are directed for maximum impact, including development of specific lending programs for recovery efforts.