Company: BANC-PF
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001628280-25-009438
Chunk: 493

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1B
Chunk 493
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 changed the Company’s or any of the Bank’s categories.Management believes, as of December 31, 2024, that the Company and the Bank met all capital adequacy requirements to which we are subject.Basel III, the comprehensive regulatory capital rules for U.S. banking organizations, requires all banking organizations to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively comprised of common equity Tier 1 capital, and it applies to each of the three risk-based capital ratios but not to the leverage ratio. Effective January 1, 2019, the capital conservation buffer was fully phased-in at 2.5%, such that the common equity Tier 1, Tier 1 and total capital ratio minimums inclusive of the capital conservation buffers were 7%, 8.5%, and 10.5%. At December 31, 2024, the Company and Bank were in compliance with the capital conservation buffer requirements. The Company and Bank elected the CECL five-year regulatory transition guidance for calculating regulatory capital ratios and the December 31, 2024 ratios include this election. This guidance allows an entity to add back to capital 100% of the capital impact from the day one CECL transition adjustment and 25% of subsequent increases to the allowance for credit losses through December 31, 2021. This cumulative amount was phased out of regulatory capital evenly over the three years from 2022 to 2024.The following tables present actual capital amounts and ratios for the Company and the Bank as of the dates indicated:Well CapitalizedCapitalMinimumConservationActualRequirementBufferBalanceRatioBalanceRatioRequirement(Dollars in thousands)December 31, 2024Tier I leverage capital (to average assets):Banc of California, Inc.$3,369,457 10.15%$1,660,337 5.00%N/ABanc of California$3,671,545 11.08%$1,656,718 5.00%N/ACET1 capital (to risk-weighted assets):Banc of California, Inc.$2,739,941 10.55%$1,688,484 6.50%7.00%Banc of California$3,671,545 14.17%$1,684,283 6.50%7.00%Tier I capital (to risk-weight