Company: BANC-PF
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001169770-25-000029
Chunk: 106

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 106
---
 $— $— $— $— $— Collectively evaluated $155,260 $25,281 $51,194 $16,027 $247,762 Ending Loans and Leases by Evaluation Methodology:Individually evaluated $95,086 $— $19,292 $— $114,378 Collectively evaluated 13,478,514 3,357,597 5,852,517 425,903 23,114,531 Ending balance$13,573,600 $3,357,597 $5,871,809 $425,903 $23,228,909 The allowance for loan and lease losses decreased by $5.6 million in the second quarter of 2025 to $229.3 million compared to the first quarter due primarily to a $38.6 million provision, offset by net charge-offs of $44.2 million. The net charge-offs of $44.2 million included $36.9 million of charge-offs relating to a strategic loan sale process commenced in the second quarter in which $506.7 million of loans were reclassified as held for sale.For additional information regarding the calculation of the ALLL using the CECL methodology, including discussion of forecasts used to estimate the allowance, please see Note 1(j). Nature of Operations and Summary of Significant Accounting Policies - Allowance for Credit Losses on Loans and Leases Held for Investment of the Notes to Consolidated Financial Statements contained in "Item 8. Financial Statements and Supplementary Data" of the Form 10-K.

44

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

A loan is considered collateral-dependent, and is individually evaluated for reserve purposes, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table summarizes collateral-dependent loans held for investment by collateral type as of the following dates:June 30, 2025December 31, 2024RealBusiness RealBusinessPropertyAssetsTotalPropertyAssetsTotal(In thousands)Real estate mortgage$160,087 $— $160,087 $167,060 $— $167,060 Commercial— 1,893 1,893 — 10,870 10,870      Total$160,087 $1,893