Bragar Eagel & Squire, P.C. has launched an investigation into Banc of California, Inc. (NYSE: BANC) to determine whether the bank and its leadership violated federal securities laws. The probe centers on the company’s disclosure of a significant net loss for the second quarter of 2026 and the resulting sharp decline in share price. This development adds to the legal scrutiny already facing the lender, as Pomerantz LLP is also conducting a separate investigation into similar claims.

Q2 2026 Financial Results Trigger Dual Investigations

On July 29, 2026, Banc of California reported financial results that fell well short of market expectations, prompting immediate legal action from two prominent firms. The company posted a net loss of $251.3 million, or $1.61 per share, compared to analyst expectations of a $0.40 per share gain. Bragar Eagel & Squire, along with Pomerantz LLP, is investigating whether the company engaged in unlawful business practices leading up to this disclosure.

The following table summarizes the key financial data points from the quarterly report that form the basis of these investigations:

Banc of California attributed the quarterly loss to a balance-sheet restructuring exercise. As part of this restructuring, the company sold $2.3 billion of lower-yielding securities and redeployed more than half of that amount into higher-yielding, shorter-duration securities. Additionally, the company initiated the sale of $827 million of certain commercial real estate loans and multifamily construction loans.

Stock Decline Following Earnings Disclosure

The earnings announcement had an immediate and pronounced impact on Banc of California's share price. On July 29, 2026, the stock fell $2.59 per share, or 12.23%, to close at $18.59 per share. The sharp single-session decline reflected investor reaction to the magnitude of the reported loss relative to consensus expectations.

Scope of the Legal Actions

Bragar Eagel & Squire, P.C., which has offices in New York, South Carolina, and California, is investigating claims on behalf of Banc of California stockholders. The firm’s litigation partners, Brandon Walker and Melissa Fortunato, are encouraging investors who suffered losses to contact them directly. Investors can reach the firm by email at investigations@bespc.com or by telephone at (212) 355-4648.

Simultaneously, Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is also investigating whether the company and certain officers or directors engaged in securities fraud. Investors interested in the Pomerantz case are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980.

Both firms have extensive histories in corporate and securities class litigation. Bragar Eagel & Squire represents individual and institutional investors in securities, derivative, and commercial litigation, while Pomerantz LLP has operated for more than 85 years, recovering numerous multimillion-dollar damages awards on behalf of class members.

Banc of California, Inc. (NYSE: BANC) declared a quarterly cash dividend of $0.12 per share on its outstanding common stock, reinforcing its commitment to returning capital to shareholders. The dividend is payable on October 1, 2026, to stockholders of record as of September 15, 2026. This declaration aligns with the company’s ongoing strategy to provide consistent income to its investor base while maintaining financial stability.

In addition to the common stock dividend, the Board of Directors declared a quarterly cash dividend of $0.4845 per depositary share on its 7.75% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series F. This preferred dividend will be payable on September 1, 2026, to stockholders of record as of August 20, 2026. The Series F depositary shares are traded on the New York Stock Exchange under the symbol "Banc/PF".

Dividend Payment Schedule

The company maintains a Dividend Reinvestment Plan (DRIP) that allows common stockholders to automatically acquire additional common shares at a 3% discount from the applicable market price. All registered common stockholders with holdings maintained at the company’s transfer agent, Computershare, are eligible to participate in the DRIP program. This mechanism enables shareholders to compound their returns by reinvesting dividends without incurring brokerage fees.

What the Numbers Show

The declaration of both common and preferred dividends highlights Banc of California’s dual focus on rewarding equity holders and meeting obligations to preferred shareholders. The preferred dividend rate of $0.4845 per depositary share corresponds to the stated 7.75% fixed rate, indicating consistent adherence to the terms of the Series F issuance. Meanwhile, the $0.12 common dividend reflects a steady payout policy, providing predictable income for retail and institutional investors alike.

For investors holding registered shares through Computershare, the availability of the DRIP offers an additional layer of value creation. By allowing purchases at a 3% discount, the plan effectively boosts the yield on reinvested dividends, enhancing long-term total return potential without requiring additional capital outlay from shareholders.

About Banc of California, Inc.

Banc of California, Inc. is a bank holding company with over $34 billion in assets and the parent company of Banc of California. The bank is one of the nation’s premier relationship-based business banks, serving small, middle-market, and venture-backed businesses. It is the largest independent bank headquartered in Los Angeles and the third largest in California, operating 77 full-service branches across California, Denver, Colorado, and Durham, North Carolina. The company also provides payment processing solutions and serves the Community Association Management industry through its SmartStreet™ platform.