Company: BANC-PF
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001169770-25-000029
Chunk: 121

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 121
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 balance sheets$117,180 $118,838 Aggregate unpaid principal balance (less than) in excess of fair value$(225)$301 

56

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

NOTE 12.  FAIR VALUE MEASUREMENTS          

The Company uses fair value to measure certain assets and liabilities on a recurring basis, primarily AFS securities, derivatives, and certain debt liabilities. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period and such measurements are therefore considered “nonrecurring” for purposes of disclosing our fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for individually evaluated loans and leases and other real estate owned and also to record impairment on certain assets, such as goodwill, CDI, and other long-lived assets.For information regarding the valuation methodologies used to measure our assets recorded at fair value (under ASC Topic 820), and for estimating fair value for financial instruments not recorded at fair value (under ASC Topic 825, as amended by ASU 2016-01 and ASU 2018-03), see Note 1. Nature of Operations and Summary of Significant Accounting Policies and Note 15. Fair Value Measurements to the Consolidated Financial Statements of the Company's Form 10-K.The Company also holds SBIC investments measured at fair value using the NAV per share practical expedient that are not required to be classified in the fair value hierarchy. At June 30, 2025, the fair value of these investments was $115.9 million.The following tables present information on the assets and liabilities measured and recorded at fair value on a recurring basis as of the dates indicated:  Fair Value Measurements as ofJune 30, 2025Measured on a Recurring BasisTotalLevel 1Level 2Level 3(In thousands)Securities available-for-sale:Agency residential MBS$849,865 $— $849,865 $— Agency commercial MBS60,872 — 60,872 — Agency residential CMOs538,069 — 538,069 — Municipal securities602 — 602 — Corporate debt securities263,138 — 260,888 2,250 Private label residential CMOs276,456 — 276,456 — Coll