Company: BANC-PF
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001628280-25-009438
Chunk: 254

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1A
Chunk 254
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ITEM 1A. RISK FACTORS 

An investment in our securities is subject to certain risks. Prospective and current investors in our securities should carefully consider the following risks, together with all the other information contained in this Annual Report on Form 10-K, including the sections titled “Forward-Looking Information” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and related notes in this Annual Report on Form 10-K. If any of the following risks actually occur, our business, results of operations, and financial condition could suffer. In that event, the value of our securities could decline, and you may lose all or part of your investment. Our business, results of operations, and financial condition could also be harmed by risks and uncertainties not presently known to us or that we currently deem immaterial also may impair our business operations.

Risk Factors Summary 

The following is a summary of the principal risks that could adversely affect our business, operations and financial results. 

Risks Relating to Our Operations

•New lines of business, new products and services, or strategic project initiatives, or new partnerships may subject us to additional risks.

•We are subject to certain risks in connection with our use of technology.

•To the extent we acquire other banks, bank branches, other assets or other businesses, we may be negatively impacted by certain risks inherent with such acquisitions.

•If we fail to comply with the applicable requirements of the payment card networks or NACHA, they could fine us, suspend us, or terminate our registration.

•Fraud by merchants or others could adversely affect our business, and our merchants may be unable to satisfy obligations, including chargebacks, for which we may also be liable.

•We face significant operational risks, including fraud and loss due to execution errors, data processing and technology errors.

•Our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses.

•Managing reputational risk is important to attracting and maintaining clients, investors and employees.

•We depend on key management personnel.

•We rely on numerous external vendors.

•We have a net deferred tax asset that may not be fully realized.

•We have suffered significant losses from the balance sheet repositioning and may suffer significant losses from future asset sales.

•Our level of indebtedness could adversely affect our ability to raise capital and meet our debt obligations.

Risks Related to Credit and Interest Rate 

•If actual losses on our loans exceed our estimates used to establish our allowance for