Company: BANC-PF
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001169770-25-000029
Chunk: 159

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 159
---
down of higher-cost BTFP borrowings in the prior year and their replacement with lower-cost long-term FHLB advances.

84

The average yield on interest-earning assets decreased 19 basis points to 5.41%, primarily due to a 101 basis point decrease in the average yield on deposits in financial institutions, and a 21 basis point decrease in average yield on loans and leases, offset partially by a 30 basis point increase in the average yield on investment securities. The average yield on deposits in financial institutions decreased to 4.41% from 5.42% driven by the federal funds rate cuts described above, while the average yield on loans and leases decreased to 5.92% from 6.13%, driven by lower net loan discount accretion and market rates. The average yield on investment securities increased to 3.22% from 2.92%, reflecting continued benefits from 2024 balance sheet repositioning actions and reinvestment in higher-yield assets. Average deposits in financial institutions decreased by $1.7 billion to $2.0 billion, as we maintained a lower cash position.

Provision for Credit Losses

The following table sets forth the details of the provision for credit losses on loans and leases held for investment and securities and information regarding credit quality metrics for the periods indicated:

Three Months EndedSix Months EndedJune 30,March 31,June 30,2025202520252024(Dollars in thousands)Provision For Credit Losses:Addition to allowance for loan and lease losses $38,580 $9,700 $48,280 $23,000 (Reduction in) addition to reserve for unfunded loan commitments(350)500 150 (2,000)Total loan-related provision 38,230 10,200 $48,430 $21,000 Addition to (reduction in) allowance for held-to-maturity securities95 (900)(805)— Addition to allowance for available-for-sale securities775 — 775 — Total securities-related provision870 (900)(30)— Total provision for credit losses$39,100 $9,300 $48,400 $21,000 Credit Quality Metrics:Net charge-offs on loans and leases held for investment (1)$44,222 $14,074 $58,296 $56,925 Annualized net charge-offs to average loans and leases0.72 %