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Borrowings and Subordinated Debt
 9 Months Ended
Sep. 30, 2025
Debt Disclosure [Abstract]  
Borrowings and Subordinated Debentures BORROWINGS AND SUBORDINATED DEBT
Borrowings
The following table summarizes our borrowings as of the dates indicated:
September 30, 2025December 31, 2024
WeightedWeighted
AverageAverage
BalanceRateBalanceRate
(Dollars in thousands)
FHLB secured advances$1,700,000 3.96 %$1,100,000 3.93 %
Other short-term borrowings190,000 4.18 %— — %
Credit-linked notes115,022 15.09 %118,838 15.29 %
Senior Notes— — %174,000 5.25 %
Total borrowings2,005,022 4.62 %1,392,838 5.06 %
Acquisition discount on Senior Notes— (1,024)
Total borrowings, net (1)
$2,005,022 $1,391,814 
___________________
(1)    All borrowings were held at the Bank level with the exception of the Senior Notes. The Senior Notes were repaid in full in April 2025.
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 September 30, 2025 of $7.1 billion, collateralized by a blanket lien on $10.6 billion of qualifying loans and $20.1 million of securities. As of September 30, 2025, there were $577.4 million in letters of credit pledged and $1.7 billion 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 date indicated:
September 30, 2025
Maturity
FHLB Secured AdvancesBalanceRateDate
(Dollars in thousands)
Term advance$200,000 4.42 %10/06/2025
Term advance (1)
150,000 4.59 %06/26/2026
Term advance100,000 3.79 %02/01/2027
Term advance100,000 3.79 %03/01/2027
Term advance100,000 3.78 %04/01/2027
Term advance (1)
150,000 4.63 %05/28/2027
Term advance (1)
150,000 4.63 %06/03/2027
Term advance (1)
150,000 4.39 %06/03/2027
Term advance100,000 3.88 %06/24/2027
Term advance (1)
500,000 3.18 %09/18/2034
Total FHLB secured advances$1,700,000 3.96 %
___________________
(1)    Represents FHLB term advances that include a put feature.which allows the FHLB to terminate the advance before its scheduled maturity date.
FRBSF Secured Line of Credit. The Bank has a secured line of credit with the FRBSF. As of September 30, 2025, the Bank had secured borrowing capacity of $5.5 billion collateralized by liens covering $5.0 billion of qualifying loans and $1.6 billion of securities. As of September 30, 2025 and December 31, 2024, there was no balance outstanding.
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 225 basis points. As of September 30, 2025 and December 31, 2024, there was no balance 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.
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 10.75% at September 30, 2025. The notes are linked to the credit risk of an approximately $2.2 billion reference pool of previously purchased single-family residential mortgage loans at September 30, 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 $115.0 million at September 30, 2025. See Note 2. Restricted Cash for information regarding the collateral for the notes and Note 11. Fair Value Option for additional information.
Other Short-Term Borrowing Arrangements. 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. As of September 30, 2025, $190.0 million was outstanding under these arrangements, compared to no borrowings outstanding as of December 31, 2024.
Subordinated Debt
The following table summarizes the terms of each issuance of subordinated debt outstanding as of the dates indicated:
September 30, 2025December 31, 2024DateMaturityRate Index
SeriesBalance
Rate (1)
Balance
Rate (1)
IssuedDate
(Quarterly Reset)
(Dollars in thousands)
Subordinated notes, net (2)(3)(4)
$381,597 3.25 %$381,185 3.25 %04/30/202105/01/2031Fixed rate
Subordinated notes (5)
75,000 4.375 %75,000 4.375 %10/30/202010/30/2030Fixed rate
Trust V10,310 7.38 %10,310 7.71 %08/15/200309/17/2033
3-month Term SOFR + 3.10
Trust VI10,310 7.35 %10,310 7.67 %09/03/200309/15/2033
3-month Term SOFR + 3.05
Trust CII5,155 7.23 %5,155 7.56 %09/17/200309/17/2033
3-month Term SOFR + 2.95
Trust VII61,856 7.32 %61,856 7.60 %02/05/200404/23/2034
3-month Term SOFR + 2.75
Trust CIII20,619 5.99 %20,619 6.31 %08/15/200509/15/2035
3-month Term SOFR + 1.69
Trust FCCI16,495 5.90 %16,495 6.22 %01/25/200703/15/2037
3-month Term SOFR + 1.60
Trust FCBI10,310 5.85 %10,310 6.17 %09/30/200512/15/2035
3-month Term SOFR + 1.55
Trust CS 2005-182,475 6.25 %82,475 6.57 %11/21/200512/15/2035
3-month Term SOFR + 1.95
Trust CS 2005-2128,866 6.52 %128,866 6.80 %12/14/200501/30/2036
3-month Term SOFR + 1.95
Trust CS 2006-151,545 9.45 %51,545 9.95 %02/22/200604/30/2036
Prime + 1.95
Trust CS 2006-251,550 6.52 %51,550 6.80 %09/27/200610/30/2036
3-month Term SOFR + 1.95
Trust CS 2006-3 (6)
30,244 4.07 %26,687 5.10 %09/29/200610/30/2036
3-month EURIBOR + 2.05
Trust CS 2006-4 16,470 9.45 %16,470 9.95 %12/05/200601/30/2037
Prime + 1.95
Trust CS 2006-5 6,650 6.52 %6,650 6.80 %12/19/200601/30/2037
3-month Term SOFR + 1.95
Trust CS 2007-239,177 6.52 %39,177 6.80 %06/13/200707/30/2037
3-month Term SOFR + 1.95
PMB Statutory Trust III7,217 7.66 %7,217 7.99 %09/16/200209/26/2032
3-month Term SOFR + 3.40
PMB Capital Trust III10,310 6.59 %10,310 6.89 %10/04/200410/08/2034
3-month Term SOFR + 2.00
Total subordinated debt1,016,156 5.28 %1,012,187 5.48 %
Acquisition discount (7)
(65,268)(70,264)
Total subordinated debt, net$950,888 $941,923 
___________________
(1)    Rates do not include the effects of discounts and issuance costs.
(2)    Net of unamortized issuance costs of $3.4 million at September 30, 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 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.