Company: BANC-PF
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001169770-25-000029
Chunk: 45

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 2
Chunk 45
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 ratios but not to the leverage ratio. Effective January 1, 2019, the common equity Tier 1, Tier 1, and Total capital ratio minimums inclusive of the capital conservation buffer were 7.00%, 8.50%, and 10.50%. At June 30, 2025, the Company and the Bank were in compliance with the capital conservation buffer requirements. 

The following tables present a comparison of our actual capital ratios to the minimum required ratios and well capitalized ratios as of the dates indicated:

Minimum RequiredFor CapitalFor CapitalFor WellJune 30,December 31,AdequacyConservationCapitalized20252024PurposesBufferClassificationBanc of California, Inc.:Tier 1 leverage capital ratio9.74%10.15%4.00%N/AN/ACET1 capital ratio9.95%10.55%4.50%7.00%N/ATier 1 capital ratio12.34%12.97%6.00%8.50%6.00%Total capital ratio16.37%17.05%8.00%10.50%10.00%Banc of California:Tier 1 leverage capital ratio10.42%11.08%4.00%N/A5.00%CET1 capital ratio13.21%14.17%4.50%7.00%6.50%Tier 1 capital ratio13.21%14.17%6.00%8.50%8.00%Total capital ratio15.65%16.65%8.00%10.50%10.00%

The Company's consolidated risk-based capital ratios decreased during the six months ended June 30, 2025 due mainly to the impact of stock repurchases, lower net earnings, and an increase in risk-weighted assets mostly driven by the growth in loan balances. The consolidated Tier 1 leverage ratio also decreased during the six months ended June 30, 2025 due mainly to higher average assets. 

105

Dividends on Common Stock and Interest on Subordinated Debt

As a bank holding company, Banc of California, Inc. is required to notify and receive approval from the FRB prior to declaring and paying a dividend to common stockholders during any period in which quarterly and/or cumulative twelve-month net earnings are insufficient to fund the dividend amount, among other requirements. Interest payments made on subordinated debt are considered dividend payments under FRB regulations. We