Company: BANC-PF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001169770-25-000024
Chunk: 183

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 8
Chunk 183
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 the economic value of the Company under various interest rate scenarios. In some ways, the economic value approach provides a broader scope than net interest income volatility approach since it captures all anticipated future cash flows. 

The balance sheet is considered “asset sensitive” when an increase in interest rates is expected to expand our net interest income, as rates earned on our interest-earning assets reprice higher at a pace faster than rates paid on our interest-bearing liabilities. Conversely, the balance sheet is considered “liability sensitive” when an increase in interest rates is expected to compress our net interest income, as rates paid on our interest-bearing liabilities reprice higher at a pace faster than rates earned on our interest-earning assets.

At both March 31, 2025 and December 31, 2024, our interest rate risk profile remained "neutral." This position reflects our balanced composition of repricing assets and beta-adjusted repricing deposits and other interest-bearing liabilities over the course of the next twelve months. Given the uncertainty of the magnitude, timing, and direction of future interest rate movements, as well as the shape of the yield curve, actual results may vary materially from those predicted by our model. 

The following table presents the projected change in the Company’s economic value of equity at March 31, 2025 and net interest income over the next twelve months, which would occur upon an immediate change in interest rates, but without giving effect to any steps that management might take to counteract that change:

Change in Interest Rates in Basis Points (bps) (1)Economic Value of EquityNet Interest IncomeAmountPercentageAmountPercentageMarch 31, 2025AmountChangeChangeAmountChangeChange(Dollars in millions)+200 bps$5,131 $(297)(5.5)%$1,007 $3 0.3 %+100 bps$5,289 $(138)(2.5)%$1,009 $5 0.5 %0 bps$5,427 $1,004 -100 bps$5,588 $161 3.0 %$999 $(5)(0.5)%-200 bps$5,674 $247 4.6 %$989 $(15)(1.5)%____________________

(1)Assumes an instantaneous uniform change in interest rates at all maturities and no rate shock has a rate lower than zero percent.

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