Dividend Availability and Regulatory Matters

12 Months Ended

Dec. 31, 2025

Dividend Availability and Regulatory Matters [Abstract]

Dividend Availability and Regulatory Matters

NOTE 22. DIVIDEND AVAILABILITY AND REGULATORY MATTERS

Holders of Company common stock may receive dividends if declared by the Board and permitted under Maryland General Corporation Law (“MGCL”), federal regulations, and certain debt covenants. Dividend payments are subject to regulatory restrictions. Both the FRB and DFPI may limit or prohibit dividends if the Bank's financial condition is weak, if proposed dividends exceed earning, or if they negatively impact the capital structure. The Bank had a cumulative net loss of $1.4 billion during the three fiscal years of 2025, 2024, and 2023, compared to dividends of $556.0 million paid by the Bank during that same period. During 2025, Banc of California, Inc. received $430.0 million in dividends from the Bank. Since the Bank had an accumulated deficit of $269.3 million at December 31, 2025, for the foreseeable future, dividends from the Bank to Banc of California, Inc. will require DFPI and FRB approval.

Banc of California, Inc., as a bank holding company, is subject to regulatory capital requirements established by federal regulatory agencies. These rules require the maintenance of minimum capital ratios and establish a framework for prompt corrective action that classified institutions based on their capital positions. Failure to meet these minimum standards can trigger mandatory and discretionary regulatory actions that could materially affect the Company's operations and financial condition. Under applicable capital adequacy guidelines, the Company and the Bank must meet quantitative capital measures that consider assets, liabilities, and certain off-balance sheet exposures, as determined under regulatory accounting practices.

Regulatory capital rules require us to maintain minimum ratios of CET1 capital, Tier 1 capital and total capital, as well as leverage ratio. The banking agencies also publish "well capitalized" thresholds used to assess capital adequacy. As of December 31, 2025 and 2024, the Company and Bank exceeded all regulatory minimums and were classified as "well capitalized."

Under the Basel III regulatory capital framework, banking organizations are also required to maintain a 2.5% capital conservation buffer above the minimum risk based capital ratios to avoid limitation on capital distributions, share repurchases, and certain discretionary compensation. Our CET1, Tier 1, and total capital ratios at December 31, 2025 exceeded the minimum requirements inclusive of the capital conservation buffer.

The Company and Bank elected the CECL five-year regulatory transition guidance for calculating regulatory capital ratios, which phases in the impact over a five year period ending December, 2024. As a result, the 2024 capital rations reflect a 25% capital benefit related to the to the allowance for credit losses increase recognized upon adoption of CECL.

The following tables present actual capital amounts and ratios for the Company and the Bank, along with the minimum levels required to be considered "well capitalized" as of the dates indicated:

				Well Capitalized Minimum
	Actual			Requirement			Capital Conservation
	Balance		Ratio	Balance		Ratio	Buffer Requirement
	(Dollars in thousands)
December 31, 2025
Tier I leverage capital (to average assets):
Banc of California, Inc.	$	3,331,161	9.99%	$	—	N/A	N/A
Banc of California	$	3,543,771	10.65%	$	1,663,677	5.00%	N/A
CET1 capital (to risk-weighted assets):
Banc of California, Inc.	$	2,701,645	10.01%	$	—	N/A	7.00%
Banc of California	$	3,543,771	13.15%	$	1,751,120	6.50%	7.00%
Tier I capital (to risk-weighted assets)
Banc of California, Inc.	$	3,331,161	12.34%	$	1,619,857	6.00%	8.50%
Banc of California	$	3,543,771	13.15%	$	2,155,225	8.00%	8.50%
Total capital (to risk-weighted assets):
Banc of California, Inc.	$	4,403,973	16.31%	$	2,699,762	10.00%	10.50%
Banc of California	$	4,206,727	15.61%	$	2,694,031	10.00%	10.50%

				Well Capitalized Minimum
	Actual			Requirement			Capital Conservation
	Balance		Ratio	Balance		Ratio	Buffer Requirement
	(Dollars in thousands)
December 31, 2024
Tier I leverage capital (to average assets):
Banc of California, Inc.	$	3,369,457	10.15%	$	—	N/A	N/A
Banc of California	$	3,671,545	11.08%	$	1,656,718	5.00%	N/A
CET1 capital (to risk-weighted assets):
Banc of California, Inc.	$	2,739,941	10.55%	$	—	N/A	7.00%
Banc of California	$	3,671,545	14.17%	$	1,684,283	6.50%	7.00%
Tier I capital (to risk-weighted assets)
Banc of California, Inc.	$	3,369,457	12.97%	$	1,558,601	6.00%	8.50%
Banc of California	$	3,671,545	14.17%	$	2,072,963	8.00%	8.50%
Total capital (to risk-weighted assets):
Banc of California, Inc.	$	4,427,860	17.05%	$	2,597,668	10.00%	10.50%
Banc of California	$	4,315,098	16.65%	$	2,591,204	10.00%	10.50%