Company: BANC-PF
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001628280-25-050892
Chunk: 19

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 2
Chunk 19
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-bearing deposits. Despite this decline, average noninterest-bearing deposits represented 28.2% of average total deposits for the nine months ended September 30, 2025, up from 27.0% for the comparable period in 2024. The average cost of borrowings also decreased by 75 basis points to 4.99%, reflecting the paydown of higher-cost borrowings in the prior year and their replacement with lower-cost long-term FHLB advances.

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The average yield on interest-earning assets declined by 17 basis points to 5.44%, due primarily to a 102 basis point decrease in the average yield on deposits in financial institutions, and an 18 basis point decline in the average yield on loans and leases, offset partially by a 27 basis point increase in the average yield on investment securities. The average yield on deposits in financial institutions decreased to 4.39% from 5.41% driven by the federal funds rate cuts described above, while the average yield on loans and leases decreased to 5.96% from 6.14%, driven by lower net loan discount accretion income and market rates. The average yield on investment securities increased to 3.21% from 2.94%, reflecting continued benefits from the 2024 balance sheet repositioning actions and reinvestment into higher-yield assets.

Provision for Credit Losses

The following table sets forth the details of the provision for credit losses on loans and leases held for investment and securities and information regarding credit quality metrics for the periods indicated:

Three Months EndedNine Months EndedSeptember 30,June 30,September 30,2025202520252024(Dollars in thousands)Provision For Credit Losses:Addition to allowance for loan and lease losses $8,700 $38,580 $56,980 $32,000 Addition to (reduction in) reserve for unfunded loan commitments1,000 (350)1,150 (2,000)Total loan-related provision 9,700 38,230 $58,130 $30,000 Addition to (reduction in) allowance for held-to-maturity securities— 95 (805)— Addition to allowance for available-for-sale securities— 775 775 — Total securities-related provision— 870 (30)— Total provision for credit losses$9,700 $39,100 $58,100 $30,000