Company: BANC-PF
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001169770-25-000029
Chunk: 103

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 103
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2,500 Three Months EndedSix Months EndedJune 30, 2024June 30, 2024Modified Loans That Modified Loans That Subsequently DefaultedSubsequently DefaultedAmortized Cost Basis at Amortized Cost Basis at June 30, 2024June 30, 2024Term Extension Term Extension(In thousands)Real estate mortgage:Other residential$2,108 $3,836 Commercial:Other commercial47 47 Total$2,155 $3,883 

41

BANC OF CALIFORNIA, INC. AND SUBSIDIARIESNotes to Condensed Consolidated Financial Statements (Unaudited)

 Leases ReceivableWe provide equipment financing to our customers primarily with operating and direct financing leases. For direct financing leases, lease receivables are recorded on the balance sheet, but the leased equipment is not, although we generally retain legal title to the leased equipment until the end of each lease. Direct financing leases are stated at the net amount of minimum lease payments receivable, plus any unguaranteed residual value, less the amount of unearned income and net acquisition discount at the reporting date. Direct lease origination costs are amortized using the effective interest method over the life of the leases. Direct financing leases are subject to our accounting for ALLL. See Note 7. Leases for information regarding operating leases where we are the lessor. The following table provides the components of leases receivable income for the periods indicated: Three Months EndedSix Months EndedJune 30,June 30,2025202420252024(In thousands)Component of leases receivable income:Interest income on net investments in leases$3,690 $4,877 $7,745 $9,612 The following table presents the components of leases receivable as of the dates indicated:June 30, 2025December 31, 2024(In thousands)Net Investment in Direct Financing Leases:Lease payments receivable$156,410 $202,815 Unguaranteed residual assets20,237 22,489 Deferred costs and other1,487 1,955 Aggregate net investment in leases$178,134 $227,259 The following table presents maturities of leases receivable as of the date indicated:June 30, 2025(In thousands)Period ending December 31, 2025$31,236 202654,392 202739,446 202