Company: BANC-PF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001169770-25-000024
Chunk: 159

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 8
Chunk 159
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 that are reviewed by our appraisal department;

•obtaining environmental risk assessments; and

•obtaining seismic studies where appropriate.

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The following table presents a roll forward of loans and leases held for investment for the period indicated:

Three Months EndedRoll Forward of Loans and Leases Held for InvestmentMarch 31, 2025(In thousands)Balance, beginning of period$23,781,663 Additions:Production923,890 Disbursements2,986,024 Total production and disbursements3,909,914 Reductions:Payoffs (2,690,992)Paydowns(855,063)Total payoffs and paydowns(3,546,055)Sales(1,090)Transfers to foreclosed assets(1,354)Charge-offs(16,551)Total reductions(3,565,050)Net increase 344,864 Balance, end of period$24,126,527 

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Allowance for Credit Losses on Loans and Leases Held for Investment 

The ACL on loans and leases held for investment is the combination of the ALLL and the reserve for unfunded loan commitments. The ALLL is reported as a reduction of the amortized cost basis of loans and leases, while the reserve for unfunded loan commitments is included within "Accrued interest payable and other liabilities" on the condensed consolidated balance sheets. The amortized cost basis of loans and leases does not include accrued interest receivable, which is included in "Other assets" on the condensed consolidated balance sheets. The "Provision for credit losses" on the condensed consolidated statement of earnings is a combination of the provision for loan and lease losses, the provision for unfunded loan commitments, the provision for AFS debt securities, and the provision for HTM debt securities.

Under the CECL methodology, expected credit losses reflect losses over the remaining contractual life of an asset, considering the effect of prepayments and available information about the collectability of cash flows, including information about relevant historical experience, current conditions, and reasonable and supportable forecasts of future events and circumstances. Thus, the CECL methodology incorporates a broad range of information in developing credit loss estimates. 

For further information regarding the calculation of the ACL on loans and leases held for investment using the CECL methodology, see Note 1. Nature of Operations and Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements contained in "Item 8. Financial Statements and Supplementary Data" of our Form 10