Company: BANC-PF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001169770-25-000024
Chunk: 172

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 8
Chunk 172
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 on regulatory capital resulting from the adoption of CECL. We elected the CECL phase-in option provided by regulatory capital rules which delayed for two years the estimated impact of CECL on regulatory capital and phases it in over a three-year transition period beginning in the first quarter of 2022. The full impact of the CECL standard was phased-in to regulatory capital through December 31, 2024 under this phase-in option, and in the first quarter of 2025, CECL was fully reflected in our regulatory capital.

Basel III currently requires all banking organizations to maintain a 2.50% capital conservation buffer above the minimum risk-based capital requirements to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively comprised of common equity Tier 1 capital, and it applies to each of the three risk-based capital ratios but not to the leverage ratio. Effective January 1, 2019, the common equity Tier 1, Tier 1, and Total capital ratio minimums inclusive of the capital conservation buffer were 7.00%, 8.50%, and 10.50%. At March 31, 2025, the Company and the Bank were in compliance with the capital conservation buffer requirements. 

The following tables present a comparison of our actual capital ratios to the minimum required ratios and well capitalized ratios as of the dates indicated:

Minimum RequiredFor CapitalFor CapitalFor WellMarch 31,December 31,AdequacyConservationCapitalized20252024PurposesBufferClassificationBanc of California, Inc.:Tier 1 leverage capital ratio10.19%10.15%4.00%N/AN/ACET1 capital ratio10.45%10.55%4.50%7.00%N/ATier 1 capital ratio12.86%12.97%6.00%8.50%N/ATotal capital ratio16.93%17.05%8.00%10.50%N/ABanc of California:Tier 1 leverage capital ratio10.88%11.08%4.00%N/A5.00%CET1 capital ratio13.74%14.17%4.50%7.00%6.50%Tier 1 capital ratio13.74%14.17%6.00%8.50%8.00%Total capital ratio16.22%16.65%8.00%10.50%10