Company: BANC-PF
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001628280-25-009438
Chunk: 355

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1B
Chunk 355
---
 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 add-back as of December 31, 2024 ranged from 0 basis points to 3 basis points for the capital ratios below.

The following tables present a comparison of our actual capital ratios to the minimum required ratios and well capitalized ratios as of the dates indicated:

Minimum RequiredFor CapitalFor CapitalFor WellDecember 31,AdequacyConservationCapitalized20242023PurposesBufferClassificationBanc of California, Inc.:Tier 1 leverage capital ratio10.15%9.00%4.00%N/AN/ACET1 capital ratio10.55%10.14%4.50%7.00%N/ATier 1 capital ratio12.97%12.44%6.00%8.50%N/ATotal capital ratio17.05%16.43%8.00%10.50%N/ABanc of California:Tier 1 leverage capital ratio11.08%9.62%4.00%N/A5.00%CET1 capital ratio14.17%13.27%4.50%7.00%6.50%Tier 1 capital ratio14.17%13.27%6.00%8.50%8.00%Total capital ratio16.65%15.75%8.00%10.50%10.00%

The Company's consolidated Tier 1 leverage and Tier 1 capital ratios increased during the year ended December 31, 2024 due mainly to net earnings and lower risk-weighted assets attributable primarily to securities and loan sales, offset partially by dividends declared and paid and higher disallowed DTAs. 

99

Subordinated Debt

We issued or assumed through mergers subordinated debt to trusts that were established by us or entities we acquired, which, in turn, issued trust preferred securities. As of December 31, 2024, the carrying value of subordinated debt totaled $941.9 million. At December 31, 2024, $131.0 million of the trust preferred securities were included in the Company's Tier I capital and $796.0 million were included in Tier II capital. For a more detailed discussion of our sub