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v3.25.1

Borrowings and Subordinated Debentures | 3 Months Ended
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Mar. 31, 2025
Debt Disclosure [Abstract] |
Borrowings and Subordinated Debentures | BORROWINGS AND SUBORDINATED DEBT Borrowings The following table summarizes our borrowings as of the dates indicated:
| March 31, 2025 |  | December 31, 2024
|  |  | Weighted |  |  |  | Weighted
|  |  | Average |  |  |  | Average
| Balance |  | Rate |  | Balance |  | Rate
| (Dollars in thousands)
FHLB secured advances | $ | 1,379,842 |  |  | 4.07 | % |  | $ | 1,100,000 |  |  | 3.93 | %
Senior Notes | 174,000 |  |  | 5.25 | % |  | 174,000 |  |  | 5.25 | %
Credit-linked notes | 117,196 |  |  | 15.07 | % |  | 118,838 |  |  | 15.29 | %
Total borrowings | 1,671,038 |  |  | 4.96 | % |  | 1,392,838 |  |  | 5.06 | %
Acquisition discount on senior notes | (256) |  |  |  |  | (1,024) |  |  |
Total borrowings, net (1) | $ | 1,670,782 |  |  |  |  | $ | 1,391,814 |  |  |
___________________ (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 as of March 31, 2025 of $6.9 billion, collateralized by a blanket lien on $10.5 billion of qualifying loans and $19.5 million of securities. As of March 31, 2025, there were $513.9 million in letters of credit pledged and $1.4 billion outstanding. As of December 31, 2024, there were $527.9 million in letters of credit pledged and $1.1 billion balance outstanding. The following table presents the interest rates and maturity dates of FHLB secured advances as of the date indicated:
| March 31, 2025 |  |
|  |  |  |  | Maturity |  |  |  |  |  |
| Balance |  | Rate |  | Date |  |  |  |  |  |
| (Dollars in thousands)
Overnight advance | $ | 100,000 |  |  | 4.65 | % |  | 04/01/2025 |  |  |  |  |  |
Term advance | 179,842 |  |  | 4.57 | % |  | 05/01/2025 |  |  |  |  |  |
Term advance | 150,000 |  |  | 4.59 | % |  | 06/26/2026 |  |  |  |  |  |
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 |  |  |  |  |  |
Callable term advance | 500,000 |  |  | 3.18 | % |  | 09/18/2034 |  |  |  |  |  |
Total FHLB secured advances | $ | 1,379,842 |  |  | 4.07 | % |  |  |  |  |  |  |  |
FRBSF Secured Line of Credit. The Bank has a secured line of credit with the FRBSF. As of March 31, 2025, the Bank had secured borrowing capacity of $5.8 billion collateralized by liens covering $5.3 billion of qualifying loans and $1.5 billion of securities. As of March 31, 2025 and December 31, 2024, there was no balance outstanding. Senior Notes. The Senior Notes are unsecured debt obligations and rank equally with our other present and future unsecured unsubordinated obligations. We make interest payments on the Senior Notes semi-annually in arrears. We have the option to redeem the Senior Notes either in whole or in part on or after January 15, 2025 (i.e., 90 days prior to the maturity date of April 15, 2025). Notification of no less than 30 nor more than 60 days is required for redemption. The Senior Notes will be redeemable at a price equal to 100% of the principal amount of the Senior Notes to be redeemed plus accrued and unpaid interest to the date of redemption. 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 March 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 10.74% at March 31, 2025. The notes are linked to the credit risk of an approximately $2.3 billion reference pool of previously purchased single-family residential mortgage loans at March 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 $117.2 million at March 31, 2025. See Note 2. Restricted Cash for information regarding the collateral for the notes and Note 11. Fair Value Option for additional information. Federal Funds Arrangements with Commercial Banks. As of March 31, 2025, the Bank had unsecured lines of credit of $265.0 million in the aggregate with several commercial banks for the purchase of overnight funds, subject to availability of funds. These lines are renewable annually and have no unused commitment fees. As of March 31, 2025 and December 31, 2024, there were no balances outstanding. The Bank is a member of the AFX, through which it may either borrow or lend funds on an overnight or short-term basis with a group of pre-approved commercial banks. The availability of funds changes daily. As of March 31, 2025 and December 31, 2024 there was no balance outstanding. Subordinated Debt The following table summarizes the terms of each issuance of subordinated debt outstanding as of the dates indicated:
| March 31, 2025 |  | December 31, 2024 |  | Date |  | Maturity |  | Rate Index
Series | Balance |  | Rate (1) |  | Balance |  | Rate (1) |  | Issued |  | Date |  | (Quarterly Reset)
| (Dollars in thousands) |  |  |  |  |  |
Subordinated notes, net (2)(7) | $ | 381,321 |  |  | 3.25 | % |  | $ | 381,185 |  |  | 3.25 | % |  | 04/30/2021 |  | 05/01/2031 |  | Fixed rate (3)
Subordinated notes | 75,000 |  |  | 4.375 | % |  | 75,000 |  |  | 4.375 | % |  | 10/30/2020 |  | 10/30/2030 |  | Fixed rate (6)
Trust V | 10,310 |  |  | 7.66 | % |  | 10,310 |  |  | 7.71 | % |  | 08/15/2003 |  | 09/17/2033 |  | 3-month Term SOFR + 3.10
Trust VI | 10,310 |  |  | 7.61 | % |  | 10,310 |  |  | 7.67 | % |  | 09/03/2003 |  | 09/15/2033 |  | 3-month Term SOFR + 3.05
Trust CII | 5,155 |  |  | 7.51 | % |  | 5,155 |  |  | 7.56 | % |  | 09/17/2003 |  | 09/17/2033 |  | 3-month Term SOFR + 2.95
Trust VII | 61,856 |  |  | 7.30 | % |  | 61,856 |  |  | 7.60 | % |  | 02/05/2004 |  | 04/23/2034 |  | 3-month Term SOFR + 2.75
Trust CIII | 20,619 |  |  | 6.25 | % |  | 20,619 |  |  | 6.31 | % |  | 08/15/2005 |  | 09/15/2035 |  | 3-month Term SOFR + 1.69
Trust FCCI | 16,495 |  |  | 6.16 | % |  | 16,495 |  |  | 6.22 | % |  | 01/25/2007 |  | 03/15/2037 |  | 3-month Term SOFR + 1.60
Trust FCBI | 10,310 |  |  | 6.11 | % |  | 10,310 |  |  | 6.17 | % |  | 09/30/2005 |  | 12/15/2035 |  | 3-month Term SOFR + 1.55
Trust CS 2005-1 | 82,475 |  |  | 6.51 | % |  | 82,475 |  |  | 6.57 | % |  | 11/21/2005 |  | 12/15/2035 |  | 3-month Term SOFR + 1.95
Trust CS 2005-2 | 128,866 |  |  | 6.50 | % |  | 128,866 |  |  | 6.80 | % |  | 12/14/2005 |  | 01/30/2036 |  | 3-month Term SOFR + 1.95
Trust CS 2006-1 | 51,545 |  |  | 9.45 | % |  | 51,545 |  |  | 9.95 | % |  | 02/22/2006 |  | 04/30/2036 |  | Prime + 1.95
Trust CS 2006-2 | 51,550 |  |  | 6.50 | % |  | 51,550 |  |  | 6.80 | % |  | 09/27/2006 |  | 10/30/2036 |  | 3-month Term SOFR + 1.95
Trust CS 2006-3 (4) | 27,878 |  |  | 4.67 | % |  | 26,687 |  |  | 5.10 | % |  | 09/29/2006 |  | 10/30/2036 |  | 3-month EURIBOR + 2.05
Trust CS 2006-4 | 16,470 |  |  | 9.45 | % |  | 16,470 |  |  | 9.95 | % |  | 12/05/2006 |  | 01/30/2037 |  | Prime + 1.95
Trust CS 2006-5 | 6,650 |  |  | 6.50 | % |  | 6,650 |  |  | 6.80 | % |  | 12/19/2006 |  | 01/30/2037 |  | 3-month Term SOFR + 1.95
Trust CS 2007-2 | 39,177 |  |  | 6.50 | % |  | 39,177 |  |  | 6.80 | % |  | 06/13/2007 |  | 07/30/2037 |  | 3-month Term SOFR + 1.95
PMB Statutory Trust III | 7,217 |  |  | 7.96 | % |  | 7,217 |  |  | 7.99 | % |  | 09/16/2002 |  | 09/26/2032 |  | 3-month Term SOFR + 3.40
PMB Capital Trust III | 10,310 |  |  | 6.55 | % |  | 10,310 |  |  | 6.89 | % |  | 10/04/2004 |  | 10/08/2034 |  | 3-month Term SOFR + 2.00
Total subordinated debt | 1,013,514 |  |  | 5.33 | % |  | 1,012,187 |  |  | 5.48 | % |  |  |  |  |  |
Acquisition discount (5) | (68,606) |  |  |  |  | (70,264) |  |  |  |  |  |  |  |  |
Total subordinated debt, net | $ | 944,908 |  |  |  |  | $ | 941,923 |  |  |  |  |  |  |  |  |
___________________ (1) Rates do not include the effects of discounts and issuance costs. (2) Net of unamortized issuance costs of $3.7 million. (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) Denomination is in Euros with a value of €25.8 million. (5) Amount represents the fair value adjustment on subordinated debt 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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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
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