Company: BANC-PF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001169770-25-000024
Chunk: 75

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 8
Chunk 75
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 on the condensed consolidated balance sheets.As of March 31, 2025, HTM securities with an amortized cost of $2.2 billion and a fair value of $2.1 billion were pledged as collateral for the FRB secured line of credit and public deposits. Allowance for Credit Losses on Securities Held-to-MaturityThe following tables present the changes by major security type in our allowance for credit losses on HTM securities for the periods indicated:Three Months Ended March 31, 2025Allowance forProvision Allowance forCredit Losses,for Credit Losses, Beginning Credit End ofSecurity Typeof PeriodLossesCharge-offsRecoveriesPeriod(In thousands)Municipal securities$140 $(120)$— $— $20 Corporate debt securities1,360 (780)— — 580 Total$1,500 $(900)$— $— $600 Three Months Ended March 31, 2024Allowance forProvision Allowance forCredit Losses,for Credit Losses, Beginning Credit End ofSecurity Typeof PeriodLossesCharge-offsRecoveriesPeriod(In thousands)Municipal securities$140 $— $— $— $140 Corporate debt securities1,360 — — — 1,360 Total$1,500 $— $— $— $1,500 Credit losses on HTM securities are recorded at the time of purchase, acquisition, or when the Company designates securities as held-to-maturity. Credit losses on HTM securities are representative of current expected credit losses that may be incurred over the life of the investment. Accrued interest receivable on HTM securities, which is included in other assets on the condensed consolidated balance sheets, is excluded from the estimate of expected credit losses. HTM U.S. treasury securities and agency-backed MBS securities are considered to have no risk of loss as they are either explicitly or implicitly guaranteed by the U.S. government. The change in fair value in the HTM private label CMBS portfolio is solely driven by changes in interest rates. The Company has no knowledge of any underlying credit issues and the cash flows underlying the debt securities have not changed and are not expected to be impacted by changes in interest rates and, thus, there is no related ACL for this portfolio. The underlying bonds in the Company’s HTM municipal securities and HTM corporate debt securities portfolios are evaluated for credit losses in conjunction with management’s estimate