Company: BANC-PF
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001169770-25-000029
Chunk: 188

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 188
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: Haircut on securities available-for-sale(184,865)(193,191)Add: Allowance on securities available-for-sale775—Total primary liquidity$4,243,076$4,367,501Ratio of primary liquidity to total assets12.4 %13.0 %

Secondary Liquidity - Off-Balance Sheet June 30,December 31, Available Secured Borrowing Capacity20252024(In thousands)Total secured borrowing capacity with the FHLB$7,104,531 $6,853,652 Less: Letters of credit(568,696)(527,893)Less: Secured advances outstanding(1,700,000)(1,100,000)Available secured borrowing capacity with the FHLB4,835,835 5,225,759 Available secured borrowing capacity with the FRBSF5,735,280 6,295,540 Total secondary liquidity$10,571,115 $11,521,299 

During the six months ended June 30, 2025, the Company's primary liquidity decreased by $124.4 million to $4.2 billion at June 30, 2025 due mainly to a $148.7 million decrease in total cash and cash equivalents which was primarily used to fund loan growth. We also include certain unencumbered HTM securities in our internal liquidity stress test buffer which are not included in our primary liquidity. During the six months ended June 30, 2025, the Company's secondary liquidity decreased by $950.2 million to $10.6 billion at June 30, 2025 due to decreases in available secured borrowing capacity with the FHLB of $389.9 million and available secured borrowing capacity with the FRB of $560.3 million. 

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Obtaining new customer deposits, or having existing customers increase their deposit balances with us, are the primary sources of funding for our operations and is one of the highest priorities of the Company. See "- Balance Sheet Analysis - Deposits" for additional information and detail of our deposits. Additionally, we fund our operations with cash flows from our loan and securities portfolios.

Our deposit balances may decrease if customers withdraw funds from the Bank. In order to address the Bank’s liquidity risk from fluctuating deposit balances, the Bank maintains adequate levels of available liquidity on and off the balance sheet.

We use brokered deposits, the availability of which is uncertain and subject to competitive market forces and regulations, for liquidity management purposes