Los Angeles' largest independent bank, two years past the PacWest merger, is betting on payments, citing 'AI-driven intelligence' as the disruption it wants to ride, while restructuring its balance sheet for higher recurring earnings.
Banc of California, the $35 billion Los Angeles bank created by the 2023 merger with PacWest and now the largest independent bank headquartered in the city, treats AI as a force in the payments market it wants to grow into rather than as a disclosed capability of its own. In March 2026 it described the payments business as being rattled by 'a shift toward AI-driven intelligence and soaring demand for instant payments' and hired Chris Healy, a 25-year payments executive, to scale its BancEdge merchant-acquiring platform; the bank already owns Deepstack Technologies, a full-stack payment processor, and SmartStreet, a platform for community-association managers. Its venture-banking arm finances technology, life-science and AI start-ups and funds the SoCal Venture Pipeline, which had accepted 88 companies and seen 24 funded for $112 million by late 2024. For clients it publishes a guide to generative-AI fraud. Under CEO Jared Wolff, who was recruited in 2019 from a career that began at PacWest, the bank spent 2025 proving the merger, with full-year earnings of $1.17 per share, more than double the prior year, and 15% annualised loan growth in the fourth quarter, then surprised investors with a second-quarter 2026 loss after selling $2.3 billion of lower-yielding securities, starting the sale of $827 million of commercial real estate and multifamily construction loans and retiring $385 million of debt, a restructuring Wolff says will deliver higher recurring earnings and capital generation. Banc of California is a California state member bank supervised by the Federal Reserve; it has not named an AI programme, vendor or leader.
Lead bank
Banc of California
Assets (lead bank, Mar 31, 2026)
$35 billion
Charter
California state member bank (Federal Reserve)
Headquarters
Los Angeles, CA
Flagship platform
Deepstack payments stack, BancEdge merchant acquiring, SmartStreet
AI leadership
Jared Wolff · Chris Healy
- Payments is the growth bet: BancEdge merchant acquiring scaled under new payments head Chris Healy (February 2026), with Deepstack as the owned processing stack.
- AI is cited as market disruption ('AI-driven intelligence' plus instant payments), not as a disclosed internal capability.
- Venture and technology banking exposure to AI start-ups through the SoCal Venture Pipeline (88 companies accepted, 24 funded for $112 million by 2024).
- Balance-sheet restructuring in Q2 2026: $2.3 billion of securities sold, $827 million of CRE and multifamily construction loans put up for sale, $385 million of debt retired, producing a quarterly loss.
- 2025 proved the merger: EPS $1.17, more than double 2024; CET1 10.01%.
- Client AI content is defensive: a generative-AI fraud guide; no AI leader, vendor or budget disclosed.
What is Deepstack payments stack, BancEdge merchant acquiring, SmartStreet?
Banc of California owns a full-stack payment processor, Deepstack Technologies, runs the SmartStreet platform for community-association management, and in February 2026 hired 25-year payments veteran Chris Healy to head its payments division and scale its merchant-acquiring platform, BancEdge, across new and existing clients. The bank frames the opportunity as a market being reshaped by 'a shift toward AI-driven intelligence and soaring demand for instant payments'. Its technology-banking and venture groups serve technology, life-science and AI start-ups, including through the SoCal Venture Pipeline it funds with the Alliance for Southern California Innovation. No internal AI deployment, AI leader or AI budget has been disclosed; the bank's AI content for clients is a guide to generative-AI fraud.[5][4][3][2]
What has Banc of California done on AI, and when?
- Jul 29, 2026
Second-quarter loss on balance-sheet restructuring[1]
$2.3 billion securities sold; $827 million of loans for sale; $385 million of debt retired.
- Jun 30, 2026
Named among America's Greatest Workplaces[7]
Largest independent bank headquartered in Los Angeles.
- Mar 10, 2026
CEO on 2026 priorities after a breakout 2025[6]
EPS $1.17; 15% annualised loan growth; CET1 10.01%.
- Mar 9, 2026
Payments push: Chris Healy hired to scale BancEdge[5]
'AI-driven intelligence' and instant payments cited as the disruption to capture.
- Aug 6, 2025
2024 Impact Report[4]
Deepstack full-stack payments and SmartStreet platforms described.
- Nov 25, 2024
Commitment to the Alliance for Southern California Innovation renewed[3]
SoCal Venture Pipeline: 88 companies accepted, 24 funded for $112 million.
- Sep 30, 2024
Guide to the growing threat of AI fraud[2]
Generative-AI scams for businesses and individuals.
Where does Banc of California use AI today?
| System | What it does | Status | Use case |
|---|---|---|---|
| Payments platform scaling (BancEdge, Deepstack)[5][4] | Merchant acquiring and full-stack processing positioned for AI-driven, instant-payment demand. | Rolling out | Generative & agentic AI |
| Venture banking for AI and technology start-ups[3] | Technology and life-science lending; SoCal Venture Pipeline funding. | In production | Credit scoring & underwriting |
| Generative-AI fraud guidance[2] | Client-facing guide to AI-driven scams and synthetic identity. | In production | Fraud detection |
Use-case links open the tracker's rules-by-use-case matrix: which documents govern each system type.
What has Banc of California disclosed in numbers?
| Metric | Value | As of |
|---|---|---|
| 2025 diluted EPS | $1.17 (more than double 2024)[6] | Mar 10, 2026 |
| Securities sold in the Q2 2026 restructuring | $2.3 billion[1] | Jul 29, 2026 |
| CRE and multifamily construction loans put up for sale | $827 million[1] | Jul 29, 2026 |
| SoCal Venture Pipeline | 88 companies accepted; 24 funded for $112 million[3] | Nov 25, 2024 |
| CET1 ratio | 10.01%[6] | Mar 10, 2026 |
“A shift toward AI-driven intelligence and soaring demand for instant payments is shaking up the industry responsible for processing transactions from credit cards and digital wallets.”[5]
Banc of California · Payments announcement · Mar 9, 2026
“The great thing about 2025 is we really showed the value of this merger.”[6]
Jared Wolff · Chairman, President and CEO · Mar 10, 2026
Who runs AI at Banc of California?
Jared WolffLinkedIn ↗
Chris HealyLinkedIn ↗
Head of Payments (from February 2026)[5]
Which regulators govern Banc of California's AI?
| Authority | Why it matters here | Documents |
|---|---|---|
| Federal Reserve | Banc of California is a state member bank; the Fed supervises model risk and the third-party relationships behind Deepstack and BancEdge. | SR 11-7 SR 23-4 |
| California CPPA | A California-chartered bank under the DFPI and the state's AI and privacy rules for consumer-facing automation. | CPPA ADMT, risk-assessment and cybersecurity-audit regulations |
| CFPB | Merchant acquiring and consumer products bring UDAAP duties to any AI in payments decisioning. | ECOA / Regulation B adverse action (15 U.S.C. 1691(d); 12 CFR 1002.9) |
What does the public record suggest about Banc of California's AI strategy?
Analysis by BankingNewsAI from the sources cited on this page. Observations, not advice.
01
Owning a processor is where AI would pay first
Deepstack gives the bank transaction data most peers rent; fraud scoring and merchant analytics are the natural AI layer, and none has been announced.
02
The restructuring buys capacity for technology
Higher recurring earnings and freed capital are the budget a payments build-out needs; the market's surprise shows investors want the plan spelled out.
03
AI start-up lending is a concentration to watch
Venture banking into AI companies exposes the book to the same cycle that lifted valuations in 2025.
04
Name the AI in the payments stack
Citing 'AI-driven intelligence' as disruption without describing the bank's own tools leaves the strategy half-stated.
Does Banc of California use AI?
The bank has not disclosed an AI programme, leader, vendor or budget. It cites 'AI-driven intelligence' as a force reshaping payments, the business it is scaling through its BancEdge merchant-acquiring platform and Deepstack processing subsidiary, and it publishes a client guide to generative-AI fraud.
Why did Banc of California report a loss in the second quarter of 2026?
Because of a balance-sheet restructuring: it sold $2.3 billion of lower-yielding securities and redeployed more than half into higher-yielding, shorter-duration ones, began selling $827 million of commercial real estate and multifamily construction loans, and retired $385 million of debt. CEO Jared Wolff said the moves position the bank for higher recurring earnings and capital generation.
- Banc of California takes big 2Q loss due to restructuring
- The Growing Threat of AI Fraud
- Banc of California Renews Commitment to Alliance for Southern California Innovation
- Banc of California 2024 Impact Report
- Banc of California Makes a Payments Push
- Banking & Finance Quarterly: Building Momentum (Los Angeles Business Journal interview with Jared Wolff)
- Banc of California Named One of America's Greatest Workplaces by Newsweek
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