# Banc of California: AI strategy

Source: https://www.bankingnewsai.com/banks/banc-of-california
Last updated: Oct 19, 2026

*Los Angeles' largest independent bank, nearly three years past the PacWest merger, is betting on payments, in a market the Los Angeles Business Journal says is being reshaped by 'AI-driven intelligence', while restructuring its balance sheet for higher recurring earnings.*

## How is Banc of California using AI?

Banc of California, the Los Angeles bank created by the 2023 merger with PacWest, with $35.0 billion of assets at 30 June 2026 and, by its own description, the largest independent bank headquartered in the city, treats AI first as a force in the payments market it wants to grow into and, since early 2026, also as a disclosed internal capability. In February 2026 it hired Chris Healy, a payments executive with 25 years of experience, to scale BancEdge, its merchant-acquiring platform formerly known as Deepstack, and the Los Angeles Business Journal framed the move in March as a response to 'a shift toward AI-driven intelligence and soaring demand for instant payments'; the bank also runs 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 City National Bank, where he was general counsel, after earlier serving as president of PacWest's Pacific Western Bank, 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. Inside the bank, AI has moved from mention to deployment: on the fourth-quarter 2025 call Wolff said AI was deployed 'across the company in a couple of different ways' and framed it as a way to slow headcount growth rather than shrink the workforce; on the first-quarter 2026 call he reported nearly universal employee access to AI tools, a robust Copilot active user rate, more than 80% of developers using AI daily, early efficiency gains in code development, reporting, compliance support and workflow automation, and targeted use cases in BSA review support and customer service. The 2026 proxy letter to stockholders lists credit analysis, portfolio monitoring, fraud prevention and operational workflows as areas AI-enabled tools support. The bank also stress-tested its roughly $450 million of technology loans for AI disruption and put a little over $4 million on a high-risk watch list. Its 10-Ks have carried an AI risk factor since the report filed in March 2025; the 2025 10-K rewrote it around third-party AI that may produce inaccurate or biased outputs. The second-quarter 2026 call and 10-Q added no new AI disclosure. It has not named an AI leader; its open roles include an SVP, head of AI.

## At a glance

| Field | Value |
| --- | --- |
| Lead bank | Banc of California |
| Ticker | BANC |
| Headquarters | Los Angeles, CA |
| Consolidated assets | $34,899 million |
| Federal Reserve rank | 57 |
| Charter | California state member bank (Federal Reserve) |

## What AI partnerships and patents does Banc of California have?

Banc of California names no AI lab, cloud provider or GPU supplier. On the fourth-quarter 2025 call the CEO named Salesforce and ServiceNow among its workflow platforms, and in April 2026 he reported a Copilot tool with a robust active user rate without naming the vendor. On the venture side it sponsors the SoCal Venture Pipeline with the Alliance for Southern California Innovation and runs Build@Banc for early-stage start-ups. A Google Patents assignee search on 14 October 2026 found no patent or published application assigned to the bank. ([Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/news/banc-california-banc-earnings-call-201542893.html), [Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/markets/stocks/articles/banc-california-banc-q1-2026-182536514.html), [Banc of California](https://bancofcal.com/about-us/newsroom/press-releases/banc-of-california-renews-commitment-to-alliance-for-southern-california-innovation), [Business Wire (Banc of California)](https://www.businesswire.com/news/home/20240523490014/en/Banc-of-California%E2%80%99s-BuildBanc-Supports-Startups-From-Seed-Investment-to-IPO))

| Item | What it is | Status | Date | Sources |
| --- | --- | --- | --- | --- |
| Copilot (vendor not named) | AI assistant with nearly universal employee access and a robust active user rate | In production | 2026-04-23 | [Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/markets/stocks/articles/banc-california-banc-q1-2026-182536514.html) |
| Salesforce and ServiceNow | Workflow and back-end platforms named among ongoing technology projects; not described as AI | In production | 2026-01-22 | [Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/news/banc-california-banc-earnings-call-201542893.html) |
| Alliance for Southern California Innovation | Sponsorship of the SoCal Venture Pipeline: 88 companies accepted, 24 funded for $112 million | In production | 2024-11-25 | [Banc of California](https://bancofcal.com/about-us/newsroom/press-releases/banc-of-california-renews-commitment-to-alliance-for-southern-california-innovation) |
| Build@Banc | Banking service for seed and early-stage start-ups, with introductions to investors and advisers | In production | 2024-05-23 | [Business Wire (Banc of California)](https://www.businesswire.com/news/home/20240523490014/en/Banc-of-California%E2%80%99s-BuildBanc-Supports-Startups-From-Seed-Investment-to-IPO) |
| BancEdge (formerly Deepstack) | Bank-owned merchant-acquiring platform; the bank is a principal member of the major card networks | Rolling out | 2026-02-17 | [Banc of California](https://bancofcal.com/about-us/newsroom/banc-of-california-appoints-chris-healy-as-executive-director-head-of-payments), [Banc of California](https://bancofcal.com/payment-solutions/bancedge) |

## Flagship platform: BancEdge (formerly Deepstack) payments platform, SmartStreet

Banc of California runs BancEdge, its payments platform formerly known as Deepstack, 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 Los Angeles Business Journal frames the opportunity as a market being reshaped by 'a shift toward AI-driven intelligence and soaring demand for instant payments' (the wording is the reporter's, not the bank's). 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. Internally, CEO Jared Wolff told investors in April 2026 that AI tools had been deployed broadly across the company, with nearly universal employee access, a robust Copilot active user rate and more than 80% of developers using AI daily, and that targeted use cases include BSA review support and customer service; the 2026 proxy letter to stockholders says AI-enabled tools support credit analysis, portfolio monitoring, fraud prevention and operational workflows. No AI budget or named AI leader has been disclosed (open roles include an SVP, head of AI); its AI content for clients is a guide to generative-AI fraud. ([Los Angeles Business Journal (reprint posted by Banc of California)](https://dam.bancofcal.com/m/7591d34845dbcd7/original/LABJ-Payments-Push.pdf), [Banc of California](https://dam.bancofcal.com/m/4aa1623087c0b1bf/original/Banc-of-California-2024-Impact-Report.pdf), [Banc of California](https://dam.bancofcal.com/m/24e2a5fdb699888c/original/CORP29-Banc-of-California-Corporate-Fact-Sheet.pdf), [Banc of California](https://bancofcal.com/about-us/newsroom/press-releases/banc-of-california-renews-commitment-to-alliance-for-southern-california-innovation), [Los Angeles Business Journal (reprint posted by Banc of California)](https://dam.bancofcal.com/m/504e5b3f4debf87f/original/LABJ-Building-Momentum-3-2-26.pdf), [Banc of California](https://bancofcal.com/business-insights/the-growing-threat-of-ai-fraud/), [Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/markets/stocks/articles/banc-california-banc-q1-2026-182536514.html), [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026021447/banc-20260326.htm))

## Key points

- Payments is the growth bet: BancEdge merchant acquiring scaled under new payments head Chris Healy (February 2026), with BancEdge (formerly Deepstack) as the owned processing platform.
- AI is framed as market disruption by the Los Angeles Business Journal ('AI-driven intelligence' plus instant payments) and, since the Q4 2025 and Q1 2026 calls, as an internal capability too.
- 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. (Corrected September 2026: internal AI deployment has since been disclosed; no AI leader or budget has.)
- Internal AI rollout (Q1 2026 call): nearly universal employee access, a robust Copilot active user rate, more than 80% of developers using AI daily; targeted use cases in BSA review support and customer service.
- AI-disruption credit review: of roughly $450 million of technology loans, a little over $4 million was put on a high-risk watch list (April 2026).
- The 2025 10-K carries an AI risk factor on third-party AI outputs, bias and data disclosure; the 2026 proxy letter calls the bank's AI investments 'pragmatic, not experimental'.
- Q2 2026 added no internal AI disclosure: the 29 July call had no AI remarks, its one technology line was that the bank has 'added APIs and solutions' for clients, and the 10-Q names AI only in its list of emerging technologies (with stablecoins, tokenized deposits, blockchain and quantum computing) that affect competition.
- The AI risk factor is older than the 2025 10-K: it first appears in the 10-K filed 3 March 2025 (the February 2024 report has none), and the 2025 report rewrote it to stress third-party AI and limited visibility into vendors' risks.
- Technology cost is flat: 'information technology and data processing' expense was $55.5 million in 2025 against $60.4 million in 2024 and $51.8 million in 2023, and $28.1 million in the first half of 2026 against $28.2 million a year earlier. No AI budget or cost line is disclosed.
- On the Q4 2025 call Wolff listed the technology projects behind the cost base: back-end and workflow technology (naming Salesforce and ServiceNow), a data project so employees can self-serve reports, finance back-office modernisation, payments, and the SmartStreet HOA platform.
- Technology and life-science lending is a small slice: about $950 million of loans split evenly between the two, with about $5 billion of deposits, against about $24 billion of total loans; fund finance adds about $1.4 billion of loans and $1.4 billion of deposits (Q1 2026 call). The bank's Technology Banking page says it supports AI companies.
- Governance sits with risk: the chief information security officer reports to Chief Risk Officer Olivia Lindsay, the CISO and CIO report quarterly to the Enterprise Risk Committee, and the board's Risk Committee oversees the information security and technology management programme.

## Timeline

- Aug 7, 2026 — **Q2 2026 10-Q lists AI among competing technologies** AI named with stablecoins, tokenized deposits, blockchain and quantum computing; other expense up $5.0 million from Q1, mainly software obsolescence. ([SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026054876/banc-20260630.htm))
- Jul 29, 2026 — **Q2 2026 call: APIs added, no AI remarks** Wolff says the bank has added APIs and solutions to tie clients more closely; the transcript has no AI discussion. ([The Motley Fool (earnings call transcript)](https://www.fool.com/earnings/call-transcripts/2026/08/07/banc-of-california-banc-q2-2026-earnings-call-transcript/))
- Jul 29, 2026 — **Second-quarter loss on balance-sheet restructuring** $2.3 billion securities sold; $827 million of loans for sale; $385 million of debt retired. ([American Banker](https://www.americanbanker.com/news/banc-of-california-takes-big-2q-loss-due-to-restructuring))
- Jun 30, 2026 — **Named among America's Greatest Workplaces** Largest independent bank headquartered in Los Angeles. ([Banc of California](https://bancofcal.com/about-us/newsroom/banc-of-california-named-one-of-americas-greatest-workplaces-by-newsweek))
- Apr 23, 2026 — **Q1 2026 call: AI efficiency tied to expense guidance** Noninterest expense growth guidance of 3% to 3.5% reaffirmed; Wolff: 'The AI initiatives are real'; technology lending of about $450 million reviewed for AI disruption. ([Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/markets/stocks/articles/banc-california-banc-q1-2026-182536514.html))
- Apr 23, 2026 — **Q1 2026 call: 80% of developers use AI daily** Nearly universal employee access and robust Copilot use; BSA review support and customer service use cases; tech loans screened for AI disruption. ([Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/markets/stocks/articles/banc-california-banc-q1-2026-182536514.html))
- Mar 26, 2026 — **Proxy: Risk Committee oversees technology and information security** Executive officers listed include Chief Risk Officer Olivia Lindsay; the board Risk Committee reviews the information security and technology management programme. ([SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026021447/banc-20260326.htm))
- Mar 26, 2026 — **Proxy letter: technology, data and AI as 'force multipliers'** AI-enabled tools support credit analysis, portfolio monitoring, fraud prevention and operational workflows. ([SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026021447/banc-20260326.htm))
- Mar 9, 2026 — **Los Angeles Business Journal covers the payments push** Reporter's framing: 'AI-driven intelligence' and instant payments are reshaping payments; Chris Healy to scale BancEdge. ([Los Angeles Business Journal (reprint posted by Banc of California)](https://dam.bancofcal.com/m/7591d34845dbcd7/original/LABJ-Payments-Push.pdf))
- Mar 2, 2026 — **CEO on 2026 priorities after a breakout 2025** EPS $1.17; 15% annualised loan growth; CET1 10.01%. ([Los Angeles Business Journal (reprint posted by Banc of California)](https://dam.bancofcal.com/m/504e5b3f4debf87f/original/LABJ-Building-Momentum-3-2-26.pdf))
- Feb 27, 2026 — **2025 10-K discloses technology cost and governance** Information technology and data processing expense $55.5 million (2024: $60.4 million); 1,904 employees; CISO reports to the Chief Risk Officer and, with the CIO, to the Enterprise Risk Committee quarterly. ([SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026012946/banc-20251231.htm))
- Feb 27, 2026 — **2025 10-K rewrites its AI risk factor** Third-party AI may produce inaccurate or harmful outputs, disclose confidential data or reflect bias; generative AI makes voice-authentication fraud harder to detect. ([SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026012946/banc-20251231.htm))
- Feb 17, 2026 — **Chris Healy appointed Executive Director, Head of Payments** Joins from Comerica to lead merchant acquiring, credit cards and BancEdge, described as the payments platform formerly known as Deepstack. ([Banc of California](https://bancofcal.com/about-us/newsroom/banc-of-california-appoints-chris-healy-as-executive-director-head-of-payments))
- Jan 22, 2026 — **Q4 2025 call: technology project list** Wolff names back-end and workflow platforms (Salesforce, ServiceNow), a data project, finance back-office modernisation, payments and the SmartStreet HOA platform. ([Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/news/banc-california-banc-earnings-call-201542893.html))
- Jan 22, 2026 — **Q4 2025 call: AI deployed across the company** Wolff: AI used to slow employment growth and upskill staff, not shrink the workforce. ([Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/news/banc-california-banc-earnings-call-201542893.html))
- Aug 6, 2025 — **2024 Impact Report** Deepstack full-stack payments (since renamed BancEdge) and SmartStreet platforms described. ([Banc of California](https://dam.bancofcal.com/m/4aa1623087c0b1bf/original/Banc-of-California-2024-Impact-Report.pdf))
- Mar 3, 2025 — **10-K for 2024 carries the bank's first AI risk factor** Covers generative-AI output that is incorrect, biased or discloses confidential data, plus voice-authentication fraud; the 2023 10-K has no AI language. ([SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828025009438/banc-20241231.htm), [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828024007933/banc-20231231.htm))
- Nov 25, 2024 — **Commitment to the Alliance for Southern California Innovation renewed** SoCal Venture Pipeline: 88 companies accepted, 24 funded for $112 million. ([Banc of California](https://bancofcal.com/about-us/newsroom/press-releases/banc-of-california-renews-commitment-to-alliance-for-southern-california-innovation))
- Sep 30, 2024 — **Guide to the growing threat of AI fraud** Generative-AI scams for businesses and individuals. ([Banc of California](https://bancofcal.com/business-insights/the-growing-threat-of-ai-fraud/))
- May 23, 2024 — **Build@Banc launched for seed and early-stage start-ups** Banking service with introductions to investors and advisers; Lynden: 'from inception to IPO and beyond'. ([Business Wire (Banc of California)](https://www.businesswire.com/news/home/20240523490014/en/Banc-of-California%E2%80%99s-BuildBanc-Supports-Startups-From-Seed-Investment-to-IPO))
- Feb 22, 2024 — **Technology Banking-West created** Michael David joins from Bridge Bank as EVP, Technology Banking-West, based in Menlo Park and reporting to Venture Banking president Sean Lynden. ([Business Wire (Banc of California)](https://www.businesswire.com/news/home/20240222926629/en/Banc-of-California-Names-Venture-Banking-Leader-Michael-David-to-New-Role-as-Head-of-Technology-Banking-West))

## Where AI runs

| Use case | What | Status | Detail | Sources |
| --- | --- | --- | --- | --- |
| [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai) | Payments platform scaling (BancEdge, formerly Deepstack) | Rolling out | Merchant acquiring and full-stack processing; the Los Angeles Business Journal ties the push to instant-payment demand and AI-driven change. | [Los Angeles Business Journal (reprint posted by Banc of California)](https://dam.bancofcal.com/m/7591d34845dbcd7/original/LABJ-Payments-Push.pdf), [Banc of California](https://dam.bancofcal.com/m/4aa1623087c0b1bf/original/Banc-of-California-2024-Impact-Report.pdf) |
| [Credit scoring & underwriting](https://www.bankingnewsai.com/ai-regulation/by-use-case#credit-underwriting) | Venture banking for AI and technology start-ups | In production | Technology and life-science lending; SoCal Venture Pipeline funding; the bank's Technology Banking page says it supports AI companies. | [Los Angeles Business Journal (reprint posted by Banc of California)](https://dam.bancofcal.com/m/504e5b3f4debf87f/original/LABJ-Building-Momentum-3-2-26.pdf), [Banc of California](https://bancofcal.com/about-us/newsroom/press-releases/banc-of-california-renews-commitment-to-alliance-for-southern-california-innovation), [Banc of California](https://bancofcal.com/venture-banking/technology) |
| [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai) | Enterprise AI tools and Copilot | In production | Nearly universal employee access; a 'robust Copilot active user rate' (the bank did not name the Copilot vendor); efficiency gains in reporting, compliance support and workflow automation. | [Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/markets/stocks/articles/banc-california-banc-q1-2026-182536514.html) |
| [AI-generated code & coding agents](https://www.bankingnewsai.com/ai-regulation/by-use-case#ai-generated-code) | AI in software development | In production | More than 80% of developers use AI in their daily workflows; early efficiency gains in code development. | [Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/markets/stocks/articles/banc-california-banc-q1-2026-182536514.html) |
| [AML / KYC](https://www.bankingnewsai.com/ai-regulation/by-use-case#aml-kyc) | BSA review support | Rolling out | One of the targeted AI use cases the CEO named in April 2026. | [Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/markets/stocks/articles/banc-california-banc-q1-2026-182536514.html) |
| [Customer-facing chatbots](https://www.bankingnewsai.com/ai-regulation/by-use-case#customer-chatbots) | Customer service applications | Rolling out | Named alongside BSA review support as a targeted AI use case under way. | [Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/markets/stocks/articles/banc-california-banc-q1-2026-182536514.html) |
| [Credit scoring & underwriting](https://www.bankingnewsai.com/ai-regulation/by-use-case#credit-underwriting) | AI-enabled credit analysis and portfolio monitoring | In production | Listed in the 2026 proxy letter with fraud prevention and operational workflows. | [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026021447/banc-20260326.htm) |
| [Model risk management](https://www.bankingnewsai.com/ai-regulation/by-use-case#model-risk) | AI risk factor and AI-disruption credit screen | In production | 10-K risk factor on third-party AI; tech-loan book screened for borrowers whose models AI could disrupt. | [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026012946/banc-20251231.htm), [Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/markets/stocks/articles/banc-california-banc-q1-2026-182536514.html) |
| [Fraud detection](https://www.bankingnewsai.com/ai-regulation/by-use-case#fraud) | Generative-AI fraud guidance | In production | Client-facing guide to voice-AI, deepfake and LLM-written phishing and business-email-compromise scams. | [Banc of California](https://bancofcal.com/business-insights/the-growing-threat-of-ai-fraud/) |
| [Third-party & vendor AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#third-party-vendors) | Third-party AI and technology provider dependence | In production | 2025 10-K: AI run by third parties may produce inaccurate or harmful outputs, and reliance on technology providers may limit the bank's visibility into those risks. | [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026012946/banc-20251231.htm), [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828025009438/banc-20241231.htm) |
| [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general) | Board and executive oversight of technology and AI risk | In production | Board Risk Committee reviews the information security and technology management programme; the CIO and CISO report quarterly to the Enterprise Risk Committee. | [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026021447/banc-20260326.htm), [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026012946/banc-20251231.htm) |
| [Cybersecurity](https://www.bankingnewsai.com/ai-regulation/by-use-case#cybersecurity) | Information security programme under the CISO | In production | The CISO reports to the Chief Risk Officer and runs incident response, engineering, governance, risk and third-party risk management. | [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026012946/banc-20251231.htm), [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026021447/banc-20260326.htm) |
| [Fraud detection](https://www.bankingnewsai.com/ai-regulation/by-use-case#fraud) | Generative-AI voice-authentication fraud exposure | In production | Both the 2024 and 2025 10-Ks say generative AI makes fraud detection harder, particularly for voice recognition and authentication. | [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828025009438/banc-20241231.htm), [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026012946/banc-20251231.htm) |
| [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai) | Workflow and data modernisation under the AI tools | Rolling out | Wolff named Salesforce and ServiceNow among workflow platforms, a data project for employee self-service reporting and finance back-office modernisation; the bank does not describe these as AI. | [Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/news/banc-california-banc-earnings-call-201542893.html) |

## Disclosed numbers

| Measure | Value | As of | Sources |
| --- | --- | --- | --- |
| Total assets | $35.0 billion (largest independent bank headquartered in Los Angeles, per the bank) | Jun 30, 2026 | [Banc of California](https://dam.bancofcal.com/m/24e2a5fdb699888c/original/CORP29-Banc-of-California-Corporate-Fact-Sheet.pdf) |
| 2025 diluted EPS | $1.17 (more than double 2024) | Mar 2, 2026 | [Los Angeles Business Journal (reprint posted by Banc of California)](https://dam.bancofcal.com/m/504e5b3f4debf87f/original/LABJ-Building-Momentum-3-2-26.pdf) |
| Securities sold in the Q2 2026 restructuring | $2.3 billion | Jul 29, 2026 | [American Banker](https://www.americanbanker.com/news/banc-of-california-takes-big-2q-loss-due-to-restructuring) |
| CRE and multifamily construction loans put up for sale | $827 million | Jul 29, 2026 | [American Banker](https://www.americanbanker.com/news/banc-of-california-takes-big-2q-loss-due-to-restructuring) |
| SoCal Venture Pipeline | 88 companies accepted; 24 funded for $112 million | Nov 25, 2024 | [Banc of California](https://bancofcal.com/about-us/newsroom/press-releases/banc-of-california-renews-commitment-to-alliance-for-southern-california-innovation) |
| CET1 ratio | 10.01% | Mar 2, 2026 | [Los Angeles Business Journal (reprint posted by Banc of California)](https://dam.bancofcal.com/m/504e5b3f4debf87f/original/LABJ-Building-Momentum-3-2-26.pdf) |
| Developers using AI in daily workflows | More than 80% | Apr 23, 2026 | [Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/markets/stocks/articles/banc-california-banc-q1-2026-182536514.html) |
| Technology loans on an AI-disruption high-risk watch list | A little over $4 million of roughly $450 million | Apr 23, 2026 | [Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/markets/stocks/articles/banc-california-banc-q1-2026-182536514.html) |
| Information technology and data processing expense, 2025 | $55.5 million (2024: $60.4 million; 2023: $51.8 million) | Feb 27, 2026 | [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026012946/banc-20251231.htm) |
| Information technology and data processing expense, first half 2026 | $28.1 million (first half 2025: $28.2 million) | Aug 7, 2026 | [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026054876/banc-20260630.htm) |
| Increase in other expense in Q2 2026 versus Q1, mainly software obsolescence | $5.0 million ($6.3 million for the half-year versus 2025) | Aug 7, 2026 | [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026054876/banc-20260630.htm) |
| Technology and life-science venture loans | About $950 million, split evenly; about $5 billion of deposits; total loans about $24 billion | Apr 23, 2026 | [Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/markets/stocks/articles/banc-california-banc-q1-2026-182536514.html) |
| 2026 noninterest expense growth guidance | 3% to 3.5% (reaffirmed) | Apr 23, 2026 | [Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/markets/stocks/articles/banc-california-banc-q1-2026-182536514.html) |
| Employees | 1,904 full-time and part-time | Dec 31, 2025 | [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026012946/banc-20251231.htm) |

## Quotes

> "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." — Los Angeles Business Journal, Reporter's summary, Banc of California payments article, Mar 9, 2026 ([Los Angeles Business Journal (reprint posted by Banc of California)](https://dam.bancofcal.com/m/7591d34845dbcd7/original/LABJ-Payments-Push.pdf))

> "The great thing about 2025 is we really showed the value of this merger." — Jared Wolff, Chairman, President and CEO, Mar 2, 2026 ([Los Angeles Business Journal (reprint posted by Banc of California)](https://dam.bancofcal.com/m/504e5b3f4debf87f/original/LABJ-Building-Momentum-3-2-26.pdf))

> "We see AI as a practical enabler of productivity, operating leverage, risk management, and scalable growth, and we are already seeing early signs of efficiency gains across code development, reporting, compliance support, and workflow automation." — Jared Wolff, Chairman, President and CEO, Apr 23, 2026 ([Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/markets/stocks/articles/banc-california-banc-q1-2026-182536514.html))

> "We do not think about it as a way to shrink our employee base. We think about it as a way to maybe slow the growth of employment and also to redeploy our employees to do things that are more upskilled." — Jared Wolff, Chairman, President and CEO, Jan 22, 2026 ([Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/news/banc-california-banc-earnings-call-201542893.html))

> "We are getting benefits from AI. We have deployed AI across the company in a couple of different ways." — Jared Wolff, Chairman, President and CEO, Jan 22, 2026 ([Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/news/banc-california-banc-earnings-call-201542893.html))

> "The AI initiatives are real, and we are seeing some early signs and some early wins, and we will not lose the opportunity to manage expenses as we always have." — Jared Wolff, Chairman, President and CEO, Apr 23, 2026 ([Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/markets/stocks/articles/banc-california-banc-q1-2026-182536514.html))

> "it is not something we see as materially disrupting our portfolio today, although we will continue watching." — Jared Wolff, Chairman, President and CEO, Apr 23, 2026 ([Yahoo Finance (Motley Fool transcript)](https://finance.yahoo.com/markets/stocks/articles/banc-california-banc-q1-2026-182536514.html))

> "we've added APIs and solutions that will allow us to be more attractive to future clients, clients to prospects and also make sure that we're tied more closely to existing clients." — Jared Wolff, Chairman, President and CEO, Jul 29, 2026 ([The Motley Fool (earnings call transcript)](https://www.fool.com/earnings/call-transcripts/2026/08/07/banc-of-california-banc-q2-2026-earnings-call-transcript/))

> "These investments are pragmatic, not experimental." — Banc of California, Letter to stockholders, 2026 proxy statement, Mar 26, 2026 ([SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026021447/banc-20260326.htm))

## Who runs AI

- **Jared Wolff** — Chairman, President and CEO ([LinkedIn](https://www.linkedin.com/in/jared-wolff-20641a5)) ([American Banker](https://www.americanbanker.com/news/banc-of-california-takes-big-2q-loss-due-to-restructuring), [Los Angeles Business Journal (reprint posted by Banc of California)](https://dam.bancofcal.com/m/504e5b3f4debf87f/original/LABJ-Building-Momentum-3-2-26.pdf))
- **Chris Healy** — Head of Payments (from February 2026) ([LinkedIn](https://www.linkedin.com/in/chris-healy-12843b5b)) ([Los Angeles Business Journal (reprint posted by Banc of California)](https://dam.bancofcal.com/m/7591d34845dbcd7/original/LABJ-Payments-Push.pdf))
- **Steven Schwimmer** — EVP and Chief Information Officer (IT, digital banking platform, operations; formerly PacWest chief innovation officer) ([Banc of California](https://bancofcal.com/about-us/leadership/))
- **Olivia Lindsay** — EVP and Chief Risk Officer (enterprise risk, BSA/AML; the chief information security officer reports to her) ([SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026021447/banc-20260326.htm), [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1169770/000162828026012946/banc-20251231.htm))
- **Sean Lynden** — President, Venture Banking Group (technology, life-science and AI start-up banking; Build@Banc) ([Banc of California](https://bancofcal.com/about-us/leadership/), [Business Wire (Banc of California)](https://www.businesswire.com/news/home/20240523490014/en/Banc-of-California%E2%80%99s-BuildBanc-Supports-Startups-From-Seed-Investment-to-IPO))

## Which AI vendors and fintechs does Banc of California work with?

| Company | What Banc of California uses it for | Status | Category |
| --- | --- | --- | --- |
| [Alloy](https://www.bankingnewsai.com/vendors/alloy) | Customer onboarding across business segments; Alloy quotes Banc of California's SVP head of product and innovation on using its platform. | In production | [Fraud detection](https://www.bankingnewsai.com/ai-tools/fraud-detection) |

Each vendor and fintech page cites the source for the relationship. [AI tools for banks](https://www.bankingnewsai.com/ai-tools) · [fintech and neobank AI dossiers](https://www.bankingnewsai.com/fintech).

## Regulators it answers to

- [Federal Reserve](https://www.bankingnewsai.com/ai-regulation/federal-reserve) — Banc of California is a state member bank; the Fed supervises model risk and the third-party relationships behind Deepstack and BancEdge. See [SR 11-7](https://www.bankingnewsai.com/ai-regulation/documents/fed-sr-11-7), [SR 23-4](https://www.bankingnewsai.com/ai-regulation/documents/fed-sr-23-4).
- [State of California](https://www.bankingnewsai.com/ai-regulation/california) — A California-chartered bank under the DFPI and the state's AI and privacy rules for consumer-facing automation. See [CPPA ADMT, risk-assessment and cybersecurity-audit regulations](https://www.bankingnewsai.com/ai-regulation/documents/ca-cppa-admt-risk-cyber-regulations-2025).
- [CFPB](https://www.bankingnewsai.com/ai-regulation/cfpb) — Merchant acquiring and consumer products bring UDAAP duties to any AI in payments decisioning. See [ECOA / Regulation B adverse action (15 U.S.C. 1691(d); 12 CFR 1002.9)](https://www.bankingnewsai.com/ai-regulation/documents/cfpb-ecoa-regulation-b-adverse-action).

## What the record suggests

### Owning a processor is where AI would pay first

BancEdge (formerly Deepstack) gives the bank transaction data most peers rent; fraud scoring and merchant analytics are the natural AI layer, and none has been announced.

### 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.

### 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.

### Name the AI in the payments stack

Press coverage cites 'AI-driven intelligence' as payments disruption, yet the bank has not described AI in its own payments tools.

## FAQ

### Who leads AI at Banc of California?

Banc of California has not named a head of AI. CEO Jared Wolff speaks for the programme, on the fourth-quarter 2025 and first-quarter 2026 earnings calls. Steven Schwimmer, executive vice president and chief information officer, runs technology, operations and the digital banking platform; he joined in November 2023 from Pacific Western Bank, where he was chief innovation officer. Olivia Lindsay, chief risk officer, owns enterprise risk and BSA/AML, and the chief information security officer reports to her. The bank's careers site lists an open SVP, Head of AI role, and no chief data officer or chief technology officer appears in its filings or leadership page.

### Does Banc of California use AI?

Yes. CEO Jared Wolff said on the first-quarter 2026 call that AI tools are deployed broadly, with nearly universal employee access, a robust Copilot active user rate and more than 80% of developers using AI daily, and that targeted use cases include BSA review support and customer service; the 2026 proxy letter adds credit analysis, portfolio monitoring and fraud prevention. No AI leader or budget has been disclosed; its open roles include an SVP, head of AI. A March 2026 Los Angeles Business Journal article on its payments push cites 'AI-driven intelligence' as a force reshaping payments, and the bank 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.

### How much does Banc of California spend on technology?

Its income-statement line for information technology and data processing was $55.5 million in 2025, down from $60.4 million in 2024 and up from $51.8 million in 2023, according to the 2025 10-K. For the first half of 2026 it was $28.1 million against $28.2 million a year earlier, according to the second-quarter 10-Q. The bank gives no AI budget. In April 2026 it reaffirmed 2026 noninterest expense growth of 3% to 3.5%, and Jared Wolff said AI initiatives were showing early wins. Second-quarter other expense rose $5.0 million from the first quarter, mainly on software obsolescence charges.

### What do Banc of California's filings say about AI?

The 10-K filed on 3 March 2025 was the first to carry an AI risk factor, citing incorrect or biased generative-AI output, release of confidential data and dependence on third-party models. The 2025 10-K, filed 27 February 2026, rewrote it: third-party AI may produce inaccurate or harmful outputs, and reliance on technology providers may limit the bank's visibility into those risks. Both reports say generative AI makes fraud detection harder, particularly for voice recognition. The second-quarter 2026 10-Q lists AI with stablecoins and quantum computing among emerging technologies that affect competition.

## Sources (22)

1. Banc of California takes big 2Q loss due to restructuring — American Banker, Jul 29, 2026. https://www.americanbanker.com/news/banc-of-california-takes-big-2q-loss-due-to-restructuring
2. The Growing Threat of AI Fraud — Banc of California, Sep 30, 2024. https://bancofcal.com/business-insights/the-growing-threat-of-ai-fraud/
3. Banc of California Renews Commitment to Alliance for Southern California Innovation — Banc of California, Nov 25, 2024. https://bancofcal.com/about-us/newsroom/press-releases/banc-of-california-renews-commitment-to-alliance-for-southern-california-innovation
4. Banc of California Corporate Fact Sheet (financial highlights as of 30 June 2026) — Banc of California, Jul 28, 2026. https://dam.bancofcal.com/m/24e2a5fdb699888c/original/CORP29-Banc-of-California-Corporate-Fact-Sheet.pdf
5. Banc of California 2024 Impact Report — Banc of California, Aug 6, 2025. https://dam.bancofcal.com/m/4aa1623087c0b1bf/original/Banc-of-California-2024-Impact-Report.pdf
6. Banc of California Makes a Payments Push — Los Angeles Business Journal (reprint posted by Banc of California), Mar 9, 2026. https://dam.bancofcal.com/m/7591d34845dbcd7/original/LABJ-Payments-Push.pdf
7. Banking & Finance Quarterly: Building Momentum (Los Angeles Business Journal interview with Jared Wolff) — Los Angeles Business Journal (reprint posted by Banc of California), Mar 2, 2026. https://dam.bancofcal.com/m/504e5b3f4debf87f/original/LABJ-Building-Momentum-3-2-26.pdf
8. Banc of California Named One of America's Greatest Workplaces by Newsweek — Banc of California, Jun 30, 2026. https://bancofcal.com/about-us/newsroom/banc-of-california-named-one-of-americas-greatest-workplaces-by-newsweek
9. Banc of California BANC Earnings Call Transcript — Yahoo Finance (Motley Fool transcript), Jan 22, 2026. https://finance.yahoo.com/news/banc-california-banc-earnings-call-201542893.html
10. Banc of California (BANC) Q1 2026 Transcript — Yahoo Finance (Motley Fool transcript), Apr 23, 2026. https://finance.yahoo.com/markets/stocks/articles/banc-california-banc-q1-2026-182536514.html
11. Banc of California, Inc. Form 10-K for 2025 — SEC EDGAR, Feb 27, 2026. https://www.sec.gov/Archives/edgar/data/1169770/000162828026012946/banc-20251231.htm
12. Banc of California 2026 proxy statement (DEF 14A), letter to stockholders — SEC EDGAR, Mar 26, 2026. https://www.sec.gov/Archives/edgar/data/1169770/000162828026021447/banc-20260326.htm
13. Meet Our Leadership Team — Banc of California, Sep 24, 2026. https://bancofcal.com/about-us/leadership/
14. Banc of California (BANC) Q2 2026 Earnings Call Transcript — The Motley Fool (earnings call transcript), Jul 29, 2026. https://www.fool.com/earnings/call-transcripts/2026/08/07/banc-of-california-banc-q2-2026-earnings-call-transcript/
15. Banc of California, Inc. Form 10-Q for the quarter ended June 30, 2026 — SEC EDGAR, Aug 7, 2026. https://www.sec.gov/Archives/edgar/data/1169770/000162828026054876/banc-20260630.htm
16. Banc of California, Inc. Form 10-K for 2024 — SEC EDGAR, Mar 3, 2025. https://www.sec.gov/Archives/edgar/data/1169770/000162828025009438/banc-20241231.htm
17. Banc of California, Inc. Form 10-K for 2023 — SEC EDGAR, Feb 29, 2024. https://www.sec.gov/Archives/edgar/data/1169770/000162828024007933/banc-20231231.htm
18. Banc of California Appoints Chris Healy as Executive Director, Head of Payments — Banc of California, Feb 17, 2026. https://bancofcal.com/about-us/newsroom/banc-of-california-appoints-chris-healy-as-executive-director-head-of-payments
19. Banc of California's Build@Banc Supports Startups From Seed Investment to IPO — Business Wire (Banc of California), May 23, 2024. https://www.businesswire.com/news/home/20240523490014/en/Banc-of-California%E2%80%99s-BuildBanc-Supports-Startups-From-Seed-Investment-to-IPO
20. Banc of California Names Venture Banking Leader Michael David to New Role as Head of Technology Banking West — Business Wire (Banc of California), Feb 22, 2024. https://www.businesswire.com/news/home/20240222926629/en/Banc-of-California-Names-Venture-Banking-Leader-Michael-David-to-New-Role-as-Head-of-Technology-Banking-West
21. BancEdge Payment Processing Solutions — Banc of California, Oct 28, 2025. https://bancofcal.com/payment-solutions/bancedge
22. Technology Banking Solutions — Banc of California, Jul 4, 2026. https://bancofcal.com/venture-banking/technology

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