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Borrowings and Subordinated Debentures
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Borrowings and Subordinated Debentures NOTE 11.  BORROWINGS AND SUBORDINATED DEBT
Borrowings
The following table summarizes our borrowings as of the dates indicated:
December 31,
20242023
WeightedWeighted
AverageAverage
Borrowing TypeBalanceRateBalanceRate
(Dollars in thousands)
FHLB secured advances$1,100,000 3.93 %$— — %
Senior notes174,000 5.25 %174,000 5.25 %
Credit-linked notes118,838 15.29 %123,116 16.02 %
Bank Term Funding Program— — %2,618,300 4.37 %
Total borrowings1,392,838 5.06 %2,915,416 4.92 %
Acquisition discount on senior notes(1,024)(4,094)
Total borrowings, net (1)
$1,391,814 $2,911,322 
___________________
(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, 2024, collateralized by a blanket lien on $10.5 billion of qualifying loans and $19.8 million of securities. As of December 31, 2024, there were $527.9 million in letters of credit pledged and $1.1 billion balances outstanding. As of December 31, 2023, there were $243.8 million in letters of credit pledged and no balances outstanding,
The following table presents the interest rates and maturity dates of FHLB secured advances as of the dates indicated:
December 31, 2024
Maturity
BalanceRateDate
(Dollars in thousands)
Term advance$150,000 4.59 %6/26/2026
Term advance150,000 4.63 %5/28/2027
Term advance150,000 4.63 %6/3/2027
Term advance150,000 4.39 %6/3/2027
Callable term advance500,000 3.18 %9/18/2034
Total FHLB secured advances$1,100,000 3.93 %
FRBSF Secured Line of Credit. The Bank has a secured line of credit with the FRBSF. As of December 31, 2024, the Bank had secured borrowing capacity of $6.3 billion collateralized by liens covering $5.9 billion of qualifying loans and $1.5 billion of securities. As of December 31, 2024 and 2023, there was no balances 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.
Line of Credit Arrangement with Commercial Bank. On December 23, 2024, Banc of California, Inc. completed an unsecured revolving line of credit agreement with a correspondent bank for $50.0 million. The rate is based on 1-month SOFR plus a spread of 2.25% basis points. As of 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 10.73% at December 31, 2024. The notes are linked to the credit risk of an approximately $2.34 billion reference pool of previously purchased single-family residential mortgage loans at December 31, 2024. 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 $118.8 million at December 31, 2024. See Note 3. Restricted Cash for information regarding the collateral for the notes and Note 14. Fair Value Option for additional information.
FRBSF Bank Term Funding Program. In March of 2023, the Bank participated in the FRBSF Bank Term Funding Program. As of December 31, 2024, there was no balance outstanding. As of December 31, 2023, the balance outstanding was $2.6 billion consisting of two term advances maturing in March 2024.
Federal Funds Arrangements with Commercial Banks. As of December 31, 2024, the Bank had unsecured lines of credit of $265.0 million in the aggregate with several correspondent 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 December 31, 2024 and December 31, 2023, 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 December 31, 2024 and December 31, 2023, the were no balances outstanding.
The following table summarizes the terms of each issuance of subordinated debt outstanding as of the dates indicated:
December 31,
20242023IssueMaturityRate Index
SeriesBalance
Rate (1)
Balance
Rate (1)
DateDate
(Quarterly Reset)
(Dollars in thousands)
Subordinated notes, net (2)(7)
$381,185 3.25 %$380,651 3.25 %4/30/20215/1/2031
Fixed rate (3)
Subordinated notes75,000 4.375 %75,000 4.375 %10/30/202010/30/2030
Fixed rate (6)
Trust V10,310 7.71 %10,310 8.74 %8/15/20039/17/2033
3-month Term SOFR + 3.10
Trust VI10,310 7.67 %10,310 8.70 %9/3/20039/15/2033
3-month Term SOFR + 3.05
Trust CII5,155 7.56 %5,155 8.59 %9/17/20039/17/2033
3-month Term SOFR + 2.95
Trust VII61,856 7.60 %61,856 8.40 %2/5/20044/23/2034
3-month Term SOFR + 2.75
Trust CIII20,619 6.31 %20,619 7.34 %8/15/20059/15/2035
3-month Term SOFR + 1.69
Trust FCCI16,495 6.22 %16,495 7.25 %1/25/20073/15/2037
3-month Term SOFR + 1.60
Trust FCBI10,310 6.17 %10,310 7.20 %9/30/200512/15/2035
3-month Term SOFR + 1.55
Trust CS 2005-182,475 6.57 %82,475 7.60 %11/21/200512/15/2035
3-month Term SOFR + 1.95
Trust CS 2005-2128,866 6.80 %128,866 7.60 %12/14/20051/30/2036
3-month Term SOFR + 1.95
Trust CS 2006-151,545 9.95 %51,545 10.45 %2/22/20064/30/2036
Prime + 1.95
Trust CS 2006-251,550 6.80 %51,550 7.60 %9/27/200610/30/2036
3-month Term SOFR + 1.95
Trust CS 2006-3 (4)
26,687 5.10 %28,453 6.00 %9/29/200610/30/2036
3-month EURIBOR + 2.05
Trust CS 2006-416,470 9.95 %16,470 10.45 %12/5/20061/30/2037
Prime + 1.95
Trust CS 2006-56,650 6.80 %6,650 7.60 %12/19/20061/30/2037
3-month Term SOFR + 1.95
Trust CS 2007-239,177 6.80 %39,177 7.60 %6/13/20077/30/2037
3-month Term SOFR + 1.95
PMB Statutory Trust III7,217 7.99 %7,217 9.02 %9/16/20029/26/2032
3-month Term SOFR + 3.40
PMB Capital Trust III10,310 6.89 %10,310 7.66 %10/4/200410/8/2034
3-month Term SOFR + 2.00
Total subordinated debt1,012,187 5.48 %1,013,419 5.93 %
Acquisition discount (5)
(70,264)(76,820)
Total subordinated debt, net$941,923 $936,599 
___________________
(1)    Rates do not include the effects of discounts and issuance costs.
(2)    Net of unamortized issuance costs of $3.8 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 trust preferred securities 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.