Company: BANC-PF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001169770-25-000024
Chunk: 110

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 8
Chunk 110
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— $2,081 $300,000 $1,442 $— Derivatives Not Designated as Hedging Instruments:Interest rate contracts192,405 5,380 5,308 192,405 6,516 6,428 Foreign exchange contracts85,726 497 172 36,155 515 1,134 Equity warrant assets15,447 3,497 — 16,066 3,763 — Total contracts$593,578 $9,374 $7,561 $544,626 $12,236 $7,562 Cash Flow HedgeCash flow hedges included pay-fixed, receive-floating interest rate swap contracts with notional amounts aggregating $300.0 million, five-year terms, and varying maturity dates throughout 2028. These swap contracts were entered into with institutional counterparties to hedge against variability in cash flow attributable to interest rate risk on a portion of the Company's borrowings. The cash flow hedges were deemed highly effective at inception and thereafter. For derivatives designated as cash flow hedges, the portion of changes in fair value considered to be highly effective are reported as a component of AOCI on the condensed consolidated balance sheets until the related cash flows from the hedged items are recognized in earnings. As of March 31, 2025, the fair value of the cash flow hedges represented a net liability of $2.1 million, related to which a loss of $2.3 million (net of tax) was included in AOCI. The estimated amount to be reclassified in the next 12 months out of AOCI into earnings is $0.1 million.Terminated Cash Flow HedgeThe Company terminated all of the pay-fixed, receive floating interest rate swap contracts classified as cash flow hedges with notional amounts of $355.0 million entered into during 2024. At March 31, 2025, we had a pre-tax net loss of $0.5 million deferred in AOCI related to terminated cash flow hedges. Amounts deferred in AOCI from terminated cash flow hedges will be amortized into interest expense through the original maturity dates of the hedges as long as the hedged forecasted transactions continue to be expected to occur.

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BANC OF CALIFORNIA, INC. AND SUBSIDIARIESNotes to Condensed Consolidated Financial Statements (Unaudited)

The following schedule summarizes amounts deferred in AOCI