Company: BANC-PF
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001628280-25-009438
Chunk: 161

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 8
Chunk 161
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Denomination is in Euros with a value of €25.8 million. (5)    Amount represents the fair value adjustment on trust preferred securities assumed in acquisitions.(6)    Interest rate is fixed until October 30, 2025, when it changes to a floating rate equal to 3-month Term SOFR, plus a spread of 419.5 basis points. (7)    Subordinated notes, net issued at the Bank level rather than the holding company level.

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BANC OF CALIFORNIA, INC. AND SUBSIDIARIESNotes to Consolidated Financial Statements

NOTE 12.  DERIVATIVES

We use derivative instruments and other risk management techniques to reduce our exposure to adverse fluctuations in interest rates and foreign currency exchange rates in accordance with our risk management policies and for certain loan clients to allow them to hedge the risk of rising interest rates and on their variable rate loans.Our derivatives are carried at fair value and recorded in "Other assets" or "Accrued interest payable and other liabilities," as appropriate, in the consolidated balance sheets. On the date we enter into a derivative contract, the derivative is designated as a fair value hedge, cash flow hedge, or a hedge designation is not made as it is a customer-related transaction. When a derivative is designated as a fair value hedge or cash flow hedge, the Company performs an assessment at inception, and at least quarterly thereafter, to determine the effectiveness of the derivative in offsetting changes in the fair value or cash flows of the hedged items.The following table presents the U.S. dollar notional amounts and fair values of our derivative instruments included in the consolidated balance sheets as of the dates indicated:December 31, 2024December 31, 2023NotionalFair ValueNotionalFair ValueAmountAssetLiabilityAmountAssetLiability(In thousands)Derivatives Designated as Hedging Instruments:Cash flow hedges$300,000 $1,442 $— $300,000 $— $4,090 Derivatives Not Designated as Hedging Instruments:Interest rate contracts192,405 6,516 6,428 168,850 6,426 6,331 Foreign exchange contracts36,155 515 1,134 45,742 1,883 128 Equity warrant assets16,066 3,763 — 17,008 3,689 — Total contracts$544,626 $12