Company: BANC-PF
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001169770-25-000029
Chunk: 117

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 117
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,585 192,405 6,516 6,428 Foreign exchange contracts92,573 2,062 1,885 36,155 515 1,134 Equity warrant assets15,080 3,571 — 16,066 3,763 — Total contracts$1,561,955 $10,271 $10,916 $544,626 $12,236 $7,562 Cash Flow HedgesCash 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. Cash flow hedges also included interest rate collars, which are option contracts designed to limit the Company's exposure to increases in short term interest rates while foregoing some of the upside if short term interest rates decrease significantly. The interest rate collars have notional amounts aggregating to $1.0 billion, with eighteen month terms, and maturing on October 31, 2026. These collars were entered into with institutional counterparties to hedge against variability in cash flows attributable to interest rate risk on a portion of the Company's floating rate deposits. The cash flow hedges were deemed highly effective at inception and as of June 30, 2025. For derivatives designated as cash flow hedges, the portion of changes in fair value considered to be highly effective is 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 June 30, 2025, the fair value of the cash flow hedges represented a net liability of $4.4 million, related to which a loss of $4.0 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 $0.5 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 June 30, 2025, we had a pre-tax net loss of $0.2 million deferred in AOCI related to terminated cash flow hedges, which