Company: BANC-PF
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001628280-25-050892
Chunk: 185

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 185
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orrowings

The following table summarizes our borrowings as of the dates indicated:

September 30, 2025December 31, 2024WeightedWeightedAverageAverageBalanceRateBalanceRate(Dollars in thousands)FHLB secured advances$1,700,000 3.96 %$1,100,000 3.93 %Other short-term borrowings190,000 4.18 %— — %Credit-linked notes115,022 15.09 %118,838 15.29 %Senior Notes— — %174,000 5.25 %Total borrowings2,005,022 4.62 %1,392,838 5.06 %Acquisition discount on Senior Notes— (1,024)Total borrowings, net$2,005,022 $1,391,814 

Borrowings increased by $613.2 million to $2.0 billion at September 30, 2025 compared to $1.4 billion at December 31, 2024, due to higher FHLB secured advances and other short-term borrowings, offset partially by the payoff of $174.0 million of Senior Notes in the second quarter of 2025. We utilized these borrowings to manage liquidity needs, including, but not limited to, funding asset growth, accommodating liability maturities and deposit withdrawals, and supporting business operations.

Subordinated Debt

Subordinated debt increased by $9.0 million to $950.9 million at September 30, 2025 compared to $941.9 million at December 31, 2024, due primarily to the accretion of the acquisition discount on acquired subordinated debt and higher valuation of the Euribor-based subordinated debt. At September 30, 2025, $131.0 million of subordinated debt was included in the Company's Tier I capital and $804.8 million was included in Tier II capital.

107

Regulatory Matters

Capital

Bank regulatory agencies measure capital adequacy through standardized risk-based capital guidelines that compare different levels of capital (as defined by such guidelines) to risk-weighted assets and off-balance sheet obligations. At September 30, 2025, banks considered to be “well capitalized” must maintain a minimum Tier 1 leverage ratio of 5.00%, a minimum common equity Tier 1 capital ratio of 6.50%, a minimum Tier