Company: BANC-PF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001169770-25-000024
Chunk: 40

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 2
Chunk 40
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The following table summarizes our borrowings as of the dates indicated:

March 31, 2025December 31, 2024WeightedWeightedAverageAverageBalanceRateBalanceRate(Dollars in thousands)FHLB secured advances$1,379,842 4.07 %$1,100,000 3.93 %Senior Notes174,000 5.25 %174,000 5.25 %Credit-linked notes117,196 15.07 %118,838 15.29 %Total borrowings1,671,038 4.96 %1,392,838 5.06 %Acquisition discount on senior notes(256)(1,024)Total borrowings, net (1)$1,670,782 $1,391,814 

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(1)    All borrowings were held at the Bank level with the exception of the 5.25% Senior Notes due April 2025 ("Senior Notes"), which were issued at the holding company level. 

Borrowings increased by $279.0 million to $1.7 billion at March 31, 2025 compared to $1.4 billion at December 31, 2024 due to higher short-term borrowings. We utilized short-term borrowings to manage liquidity needs, including, but not limited to, accommodating liability maturities and deposit withdrawals, funding asset growth, and supporting business operations.

Subordinated Debt

As of March 31, 2025, the carrying value of subordinated debt totaled $944.9 million compared to $941.9 million at December 31, 2024. The increase was mainly driven by the accretion of the acquisition discount on acquired subordinated debt and higher valuation of the Euribor-based subordinated debt. At March 31, 2025, $131.0 million was included in the Company's Tier I capital and $798.9 million was included in Tier II capital. 

94

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 March 31, 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