Company: BANC-PF
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001628280-25-009438
Chunk: 442

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1B
Chunk 442
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$27,109 

157

BANC OF CALIFORNIA, INC. AND SUBSIDIARIESNotes to Consolidated Financial Statements

Year Ended December 31, 2023Loan Modifications That Subsequently DefaultedAmortized Cost Basis at December 31, 2023TermExtensionTotal(In thousands)Real estate mortgage:Other residential$735 $735 Leases ReceivableWe provide equipment financing to our customers primarily with operating and direct financing leases. For direct financing leases, lease receivables are recorded on the balance sheet, but the leased equipment is not, although we generally retain legal title to the leased equipment until the end of each lease. Direct financing leases are stated at the net amount of minimum lease payments receivable, plus any unguaranteed residual value, less the amount of unearned income and net acquisition discount at the reporting date. Direct lease origination costs are amortized using the effective interest method over the life of the leases. Direct financing leases are subject to our accounting for allowance for loan and lease losses. See Note 9. Leases for information regarding operating leases where we are the lessor. The following table provides the components of leases receivable income for the period indicated:Year Ended December 31, 202420232022(In thousands)Component of leases receivable income:Interest income on net investments in leases$18,714 $16,671 $10,813 The following table presents the components of leases receivable as of the date indicated:December 31,20242023(In thousands)Net Investment in Direct Financing Leases:Lease payments receivable$202,815 $249,223 Unguaranteed residual assets22,489 25,488 Deferred costs and other1,955 2,715 Aggregate net investment in leases$227,259 $277,426 The following table presents maturities of leases receivable as of the date indicated: December 31, 2024(In thousands)Year Ending December 31,2025$74,522 202657,810 202741,952 202827,079 202920,171 Thereafter5,229 Total undiscounted cash flows226,763 Less: Unearned income(23,948)Present value of lease payments$202,815 

158

BANC OF CALIFORNIA, INC. AND SUBSIDIARIESNotes to Consolidated Financial Statements

Allowance for Loan and Lease Losses