Company: BANC-PF
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001628280-25-050892
Chunk: 161

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 161
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 to 4.39% from 5.41% driven by the federal funds rate cuts described above, while the average yield on loans and leases decreased to 5.96% from 6.14%, driven by lower net loan discount accretion income and market rates. The average yield on investment securities increased to 3.21% from 2.94%, reflecting continued benefits from the 2024 balance sheet repositioning actions and reinvestment into higher-yield assets.

Provision for Credit Losses

The following table sets forth the details of the provision for credit losses on loans and leases held for investment and securities and information regarding credit quality metrics for the periods indicated:

Three Months EndedNine Months EndedSeptember 30,June 30,September 30,2025202520252024(Dollars in thousands)Provision For Credit Losses:Addition to allowance for loan and lease losses $8,700 $38,580 $56,980 $32,000 Addition to (reduction in) reserve for unfunded loan commitments1,000 (350)1,150 (2,000)Total loan-related provision 9,700 38,230 $58,130 $30,000 Addition to (reduction in) allowance for held-to-maturity securities— 95 (805)— Addition to allowance for available-for-sale securities— 775 775 — Total securities-related provision— 870 (30)— Total provision for credit losses$9,700 $39,100 $58,100 $30,000 Credit Quality Metrics:Net (recoveries) charge-offs on loans and leases held for investment (1)$(2,457)$44,222 $55,839 $59,342 Annualized net (recoveries) charge-offs to average loans and leases(0.04)%0.72 %0.31 %0.32 %At quarter-end:Allowance for credit losses$270,722 $258,565 Allowance for credit losses to loans and leases held for investment1.12 %1.07 %Allowance for credit losses to nonaccrual loans and leases held for investment155.1 %154.4 %Nonaccrual loans and leases held for investment $174,541 $167,516 Nonaccrual loans and leases held for investment to loans and leases held for investment