Company: BANC-PF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001169770-25-000024
Chunk: 16

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 2
Chunk 16
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 and an improved funding mix. The average cost of deposits decreased by 54 basis points to 2.12% in the first quarter of 2025 from 2.66% for the first quarter of 2024 mainly driven by the federal funds rate cuts. The improved funding mix is reflected in the increase in average noninterest-bearing deposits, which represent 29% of average total deposits for the first quarter of 2025 compared to 26% of average total deposits for the first quarter of 2024. The shift reflects the success of our relationship-based strategy to grow our deposit base. Additionally, average brokered deposits represented 10% of average total deposits for the first quarter of 2025 compared to 14% of average total deposits for the first quarter of 2024, as we reduced our reliance on higher-cost wholesale funding and lower overall funding costs.

•The average yield on interest-earning assets decreased by 17 basis points to 5.39% for the first quarter of 2025 compared to 5.56% for the first quarter of 2024 due mainly to the average yield on deposits in financial institutions decreasing by 101 basis points and the average yield on loans and leases decreasing by 18 basis points, offset partially by the average yield on investment securities increasing by 32 basis points and an improved funding mix. The average yield on deposits in financial institutions was 4.41% for the first quarter of 2025 compared to 5.42% for the first quarter of 2024, driven by the federal funds rate cuts as described above. The average yield on loans and leases was 5.90% for the first quarter of 2025 compared to 6.08% for the first quarter of 2024 due primarily to lower market interest rates. These decreases were partially offset by an increase in the average yield on investment securities, which was 3.24% in the first quarter of 2025 compared to 2.92% in the first quarter of 2024 and benefited from the balance sheet repositioning actions taken in 2024 and the purchase of and reinvestment into higher-yielding securities. The improved funding mix is reflected by the percentage of average loans and leases to average interest-earning assets increasing to 78% for the first quarter of 2025 from 74% in the first quarter of 2024, and the percentage of average deposits in financial institutions to average interest-earning assets decreasing to 7% for the first quarter of