Company: BANC-PF
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001628280-25-050892
Chunk: 190

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 190
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4,461,992$4,367,501Ratio of primary liquidity to total assets13.1 %13.0 %

Secondary Liquidity - Off-Balance Sheet September 30,December 31, Available Secured Borrowing Capacity20252024(In thousands)Total secured borrowing capacity with the FHLB$7,062,106 $6,853,652 Less: Letters of credit(577,442)(527,893)Less: Secured advances outstanding(1,700,000)(1,100,000)Available secured borrowing capacity with the FHLB4,784,664 5,225,759 Available secured borrowing capacity with the FRBSF5,503,924 6,295,540 Total secondary liquidity$10,288,588 $11,521,299 

The Company's primary liquidity increased by $94.5 million to $4.5 billion at September 30, 2025 compared to $4.4 billion at December 31, 2024, due mainly to an increase of $179.9 million in AFS securities, partially offset by a decrease of  $103.9 million in total cash, cash equivalents, and restricted cash. We also include certain unencumbered HTM securities in our internal liquidity stress test buffer which are not included in our primary liquidity. The Company's secondary liquidity decreased by $1.2 billion to $10.3 billion at September 30, 2025 compared to $11.5 billion at December 31, 2024, due to decreases in available secured borrowing capacity with the FRB of $791.6 million and with the FHLB of $441.1 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. At September 30, 2025, brokered deposits totaled $2