2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 284 PROXY STATEMENT SUMMARY Our Strategy Our vision is to be California’s Bank with a mission to empower California’s diverse businesses, entrepreneurs and communities. The Company strives to maintain a stable foundation to support execution of its strategic plan. The Company’s foundation includes: ▪ a strong and powerful brand; ▪ superior markets in which it operates, primarily California; ▪ the balance sheet size required to be competitive; ▪ strong credit and capital metrics; and ▪ an experienced commercial banking leadership team and enhanced corporate governance. The Company has outlined the following strategic roadmap, which summarizes its strategic plan and objectives: BANC Strategic Roadmap The four guideposts of our strategic roadmap provide objectives for which we believe investors can track our progress and execution against our plan: ▪ Build Core Deposits . Our number one priority is to improve our core deposit funding profile and to further reduce our reliance on wholesale and other high-cost funding sources. ▪ Amplify Lending. In order to grow the long-term earnings power of the franchise, we need to continue to increase loan balances, both as we reduce the level of securities and to drive growth of earning assets over time. As we seek to grow our loan portfolio, we must remain focused on risk management and strong credit quality. ▪ Normalize Expenses. We have taken steps to stabilize our expense base. Going forward, we seek to leverage the expenses we incur today to support a larger balance sheet and increased business volumes. ▪ Creating Stockholder Value . The combination of the actions above, we believe, should enhance value for stockholders over time. We believe the foundation we have in place today, coupled with the plan we have outlined, will result in operating leverage as we grow the franchise and improve the overall earnings profile. Page 2 Annual Proxy Statement 2018 BANC OF CALIFORNIA