BANC OF CALIFORNIA, INC.BANC
BANC OF CALIFORNIA, INC. Debt Disclosure
NOTE 11. BORROWINGS AND SUBORDINATED DEBT
Borrowings
The following table summarizes our borrowings as of the dates indicated:
| December 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Weighted | Weighted | ||||||||||||||||||||||
| Borrowing Type | Balance | Average Rate | Balance | Average Rate | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| FHLB secured advances | $ | 1,710,185 | 3.90 | % | $ | 1,100,000 | 3.93 | % | |||||||||||||||
| Credit-linked notes | 113,634 | 14.63 | % | 118,838 | 15.29 | % | |||||||||||||||||
| Other short-term borrowings | 240,000 | 3.69 | % | — | — | % | |||||||||||||||||
| Senior notes | — | — | % | 174,000 | 5.25 | % | |||||||||||||||||
| Total borrowings | 2,063,819 | 4.47 | % | 1,392,838 | 5.06 | % | |||||||||||||||||
| Acquisition discount on Senior Notes | — | (1,024) | |||||||||||||||||||||
Total borrowings, net (1) | $ | 2,063,819 | $ | 1,391,814 | |||||||||||||||||||
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(1) All borrowings were held at the Bank level with the exception of the 5.25% Senior Notes due April 2025 ("Senior Notes"), which were issued at the holding company level.
The Bank has established secured and unsecured lines of credit under which it may borrow funds from time to time on a term or overnight basis from the FHLB, the FRBSF, and other financial institutions.
FHLB Secured Line of Credit. The Bank had secured financing capacity with the FHLB of $6.9 billion as of December 31, 2025, collateralized by a blanket lien on $10.3 billion of qualifying loans and $20.5 million of securities. As of December 31, 2025, there were $514.1 million in letters of credit pledged and $1.7 billion balances outstanding. As of December 31, 2024, there were $527.9 million in letters of credit pledged and a $1.1 billion balance outstanding.
The following table presents the interest rates and maturity dates of FHLB secured advances as of the dates indicated:
| December 31, 2025 | |||||||||||||||||
| Balance | Rate | Maturity Date | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Overnight advance | $ | 35,185 | 4.02 | % | 01/02/2026 | ||||||||||||
| Term advance | 175,000 | 3.89 | % | 02/11/2026 | |||||||||||||
| Term advance | 150,000 | 4.59 | % | 06/26/2026 | |||||||||||||
| Term advance | 100,000 | 3.79 | % | 02/01/2027 | |||||||||||||
| Term advance | 100,000 | 3.79 | % | 03/01/2027 | |||||||||||||
| Term advance | 100,000 | 3.78 | % | 04/01/2027 | |||||||||||||
| Term advance | 150,000 | 4.63 | % | 05/28/2027 | |||||||||||||
| Term advance | 150,000 | 4.63 | % | 06/03/2027 | |||||||||||||
| Term advance | 150,000 | 4.39 | % | 06/03/2027 | |||||||||||||
| Term advance | 100,000 | 3.88 | % | 06/24/2027 | |||||||||||||
| Callable term advance | 500,000 | 3.18 | % | 09/18/2034 | |||||||||||||
| Total FHLB secured advances | $ | 1,710,185 | 3.90 | % | |||||||||||||
FRBSF Secured Line of Credit. The Bank has a secured line of credit with the FRBSF. As of December 31, 2025, the Bank had secured borrowing capacity of $5.0 billion collateralized by liens covering $4.6 billion of qualifying loans and $1.5 billion of securities. As of December 31, 2025 and December 31, 2024, there was no balances outstanding.
Senior Notes. The Senior Notes were unsecured debt obligations and ranked equally with our other unsecured unsubordinated obligations. We made interest payments on the Senior Notes semi-annually in arrears. On April 4, 2025, the Company repaid the Senior Notes in full that were scheduled to mature on April 15, 2025.
Holding Company Line of Credit Arrangement. On December 23, 2024, Banc of California, Inc. entered into an unsecured revolving line of credit agreement as a borrower for $50.0 million. On March 17, 2025, the Company executed an amendment to the credit agreement which increased the Company's unsecured revolving line of credit to $100.0 million. The rate is based on 1-month SOFR plus a spread of 2.25% basis points. As of December 31, 2025 and December 31, 2024, there was no balance outstanding.
Credit-Linked Notes. On September 29, 2022, legacy Pacific Western Bank completed a credit-linked notes transaction. The notes were issued in five classes, each with an interest rate of SOFR plus a spread that ranges from 8.00% to 13.25%, with a weighted average spread of 10.76% at December 31, 2025. The notes are linked to the credit risk of an approximately $2.2 billion reference pool of previously purchased SFR mortgage loans at December 31, 2025. The notes are due June 27, 2052. Principal payments on the notes are based only on principal that is actually collected on these loans. The notes are reported at fair value of $113.6 million at December 31, 2025. See "Note 3. Restricted Cash" for information regarding the collateral for the notes and "Note 14. Fair Value Option" for additional information.
Other Short-Term Borrowing Arrangements. As of December 31, 2025, the Bank had credit limits of $215.0 million in the aggregate with several commercial banks, as well as borrowing arrangements with unaffiliated financial institutions that provide for the purchase of overnight funds and other short-term borrowings. The availability of these unsecured borrowings fluctuates regularly and is subject to the discretion of the counterparties. These lines are renewable annually and have no unused commitment fees. As of December 31, 2025 $240.0 million was outstanding under these arrangements compared to no borrowings outstanding as of December 31, 2024.
The following table summarizes the terms of each issuance of subordinated debt outstanding as of the dates indicated:
December 31, | |||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Issue | Maturity | Rate Index | |||||||||||||||||||||||||||||||||||||
| Series | Balance | Rate (1) | Balance | Rate (1) | Date | Date | (Quarterly Reset) | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Subordinated notes, net (2)(3)(4) | $ | 381,737 | 3.25 | % | $ | 381,185 | 3.25 | % | 4/30/2021 | 5/1/2031 | Fixed rate | ||||||||||||||||||||||||||||||
Subordinated notes (5) | 75,000 | 8.05 | % | 75,000 | 4.375 | % | 10/30/2020 | 10/30/2030 | 3-month Term SOFR + 4.195% | ||||||||||||||||||||||||||||||||
| Trust V | 10,310 | 7.07 | % | 10,310 | 7.71 | % | 8/15/2003 | 9/17/2033 | 3-month Term SOFR + 3.10 | ||||||||||||||||||||||||||||||||
| Trust VI | 10,310 | 7.03 | % | 10,310 | 7.67 | % | 9/3/2003 | 9/15/2033 | 3-month Term SOFR + 3.05 | ||||||||||||||||||||||||||||||||
| Trust CII | 5,155 | 6.92 | % | 5,155 | 7.56 | % | 9/17/2003 | 9/17/2033 | 3-month Term SOFR + 2.95 | ||||||||||||||||||||||||||||||||
| Trust VII | 61,856 | 6.85 | % | 61,856 | 7.60 | % | 2/5/2004 | 4/23/2034 | 3-month Term SOFR + 2.75 | ||||||||||||||||||||||||||||||||
| Trust CIII | 20,619 | 5.67 | % | 20,619 | 6.31 | % | 8/15/2005 | 9/15/2035 | 3-month Term SOFR + 1.69 | ||||||||||||||||||||||||||||||||
| Trust FCCI | 16,495 | 5.58 | % | 16,495 | 6.22 | % | 1/25/2007 | 3/15/2037 | 3-month Term SOFR + 1.60 | ||||||||||||||||||||||||||||||||
| Trust FCBI | 10,310 | 5.53 | % | 10,310 | 6.17 | % | 9/30/2005 | 12/15/2035 | 3-month Term SOFR + 1.55 | ||||||||||||||||||||||||||||||||
| Trust CS 2005-1 | 82,475 | 5.93 | % | 82,475 | 6.57 | % | 11/21/2005 | 12/15/2035 | 3-month Term SOFR + 1.95 | ||||||||||||||||||||||||||||||||
| Trust CS 2005-2 | 128,866 | 6.05 | % | 128,866 | 6.80 | % | 12/14/2005 | 1/30/2036 | 3-month Term SOFR + 1.95 | ||||||||||||||||||||||||||||||||
| Trust CS 2006-1 | 51,545 | 9.20 | % | 51,545 | 9.95 | % | 2/22/2006 | 4/30/2036 | Prime + 1.95 | ||||||||||||||||||||||||||||||||
| Trust CS 2006-2 | 51,550 | 6.05 | % | 51,550 | 6.80 | % | 9/27/2006 | 10/30/2036 | 3-month Term SOFR + 1.95 | ||||||||||||||||||||||||||||||||
Trust CS 2006-3 (6) | 30,275 | 4.12 | % | 26,687 | 5.10 | % | 9/29/2006 | 10/30/2036 | 3-month EURIBOR + 2.05 | ||||||||||||||||||||||||||||||||
| Trust CS 2006-4 | 16,470 | 9.20 | % | 16,470 | 9.95 | % | 12/5/2006 | 1/30/2037 | Prime + 1.95 | ||||||||||||||||||||||||||||||||
| Trust CS 2006-5 | 6,650 | 6.05 | % | 6,650 | 6.80 | % | 12/19/2006 | 1/30/2037 | 3-month Term SOFR + 1.95 | ||||||||||||||||||||||||||||||||
| Trust CS 2007-2 | 39,177 | 6.05 | % | 39,177 | 6.80 | % | 6/13/2007 | 7/30/2037 | 3-month Term SOFR + 1.95 | ||||||||||||||||||||||||||||||||
| PMB Statutory Trust III | 7,217 | 7.35 | % | 7,217 | 7.99 | % | 9/16/2002 | 9/26/2032 | 3-month Term SOFR + 3.40 | ||||||||||||||||||||||||||||||||
| PMB Capital Trust III | 10,310 | 6.15 | % | 10,310 | 6.89 | % | 10/4/2004 | 10/8/2034 | 3-month Term SOFR + 2.00 | ||||||||||||||||||||||||||||||||
| Total subordinated debt | 1,016,327 | 5.35 | % | 1,012,187 | 5.48 | % | |||||||||||||||||||||||||||||||||||
Acquisition discount (7) | (63,587) | (70,264) | |||||||||||||||||||||||||||||||||||||||
| Total subordinated debt, net | $ | 952,740 | $ | 941,923 | |||||||||||||||||||||||||||||||||||||
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(1) Rates do not include the effects of discounts and issuance costs.
(2) Net of unamortized issuance costs of $3.3 million at December 31, 2025 and $3.8 million at December 31, 2024.
(3) Interest rate is fixed until May 1, 2026, when it changes to a floating rate and resets quarterly equal to 3-month Term SOFR, plus a spread of 252 basis points.
(4) Subordinated notes, net issued at the Bank level rather than the holding company level.
(5) Interest rate was fixed at 4.375% until October 30, 2025, when it changed to a floating rate equal to 3-month Term SOFR, plus a spread of 419.5 basis points.
(6) Denomination is in Euros with a value of €25.8 million.
(7) Amount represents the fair value adjustment on subordinated debt assumed in acquisitions.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 18, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.