Company: BANC-PF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001169770-25-000024
Chunk: 14

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 2
Chunk 14
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-earning assets as described below:

•The average total cost of funds decreased by 13 basis points to 2.42% for the first quarter of 2025 compared to 2.55% for the fourth quarter of 2024 due mainly to lower market interest rates and a lower balance of average total deposits. The average cost of deposits decreased by 14 basis points to 2.12% in the first quarter of 2025 from 2.26% for the fourth quarter of 2024 reflecting a full quarter impact of the federal funds rate cuts. Average total deposits decreased by $247.0 million, with average noninterest-bearing deposits decreasing by $190.9 million for the first quarter of 2025 compared to the fourth quarter of 2024, and average interest-bearing deposits decreasing by $56.1 million for those same comparative periods. Average noninterest-bearing deposits represented 29% of average total deposits in both quarters.

•The average yield on interest-earning assets decreased by 9 basis points to 5.39% for the first quarter of 2025 compared to 5.48% for the fourth quarter of 2024 due mainly to the average yield on deposits in financial institutions decreasing by 33 basis points and the average yield on loans and leases decreasing by 11 basis points, offset partially by the average yield on investment securities increasing by 5 basis points. The average yield on deposits in financial institutions was 4.41% for the first quarter of 2025 compared to 4.74% for the fourth quarter of 2024, driven by the federal funds rate cuts as described above. The average yield on loans and leases was 5.90% for the first quarter of 2025 compared to 6.01% for the fourth quarter of 2024 due primarily to aforementioned lower loan prepayments and lower market interest rates. These decreases were partially offset by an increase in the average yield on investment securities, which was 3.24% in the first quarter of 2025 compared to 3.19% in the fourth quarter of 2024 as we continued to benefit from the balance sheet repositioning actions taken in 2024 and the purchase of and reinvestment into higher-yielding securities. Additionally, average deposits in financial institutions decreased by $386.6 million to $2.1 billion in the first quarter of 2025 from $2.5 billion in the fourth quarter of 2024 as we maintained a lower cash target level.