Los Angeles-based Banc of California reported an unexpected $251.3 million loss Wednesday among its second-quarter results. That maneuver was meant to “reduce selected credit exposures and lower the potential for future credit-related earnings volatility,” Banc of California said. Banc of California also retired $385 million in subordinated debt ahead of “a significantly higher interest rate reset,” the lender disclosed Wednesday. But Banc of California is reinvesting the proceeds on them to buy shorter-duration securities with a 4.87% yield. Until Wednesday, Banc of California had not suffered a quarterly loss since Q4 of 2023, when the Los Angeles lender completed its acquisition of PacWest.