Company: BANC-PF
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001628280-25-009438
Chunk: 208

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1
Chunk 208
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 our products and services, which includes developing point of sales solutions and payments hub process platform that will enable RTP and FedNow.

Lending Activities

At December 31, 2024 and 2023, total loans and leases held for investment were $23.8 billion and $25.5 billion. Our lending activities include real estate mortgage loans, real estate construction and land loans, commercial loans and leases, purchased single-family residential mortgage loans, and a small amount of consumer loans. Our commercial real estate loans and real estate construction loans are secured by a range of property types. Included in our commercial real estate loans and real estate construction loans are business-purpose loans secured by non-owner-occupied residential investment properties provided by Civic, a wholly-owned subsidiary. Our commercial loans and leases portfolio is diverse and generally includes various asset-secured loans, equipment-secured loans and leases, venture capital loans to support venture capital firms’ operations and the operations of entrepreneurial and venture-backed companies during the various stages of their early life cycles, warehouse loans, and secured business loans originated through our CCB group. 

In the fourth quarter of 2022, we decided to cease originating new loans to finance life insurance premiums and will allow these loans to repay upon maturities. At December 31, 2024, there were $546.4 million of premium finance loans outstanding.

In the second quarter of 2023, we divested non-core loan portfolios, which included selling:

•the National Construction portfolio, including $2.6 billion of loans and $2.3 billion of unfunded commitments,

•the Lender Finance portfolio, including $2.1 billion of loans and $0.2 billion of unfunded commitments,

•and a portion of the Civic portfolio, including $521 million of loans and $24 million of unfunded commitments. 

In the third quarter of 2024, we sold an additional $1.95 billion of Civic loans. We also repurchased at par $319 million of the Lender Finance portfolio for which we had retained servicing, moving this back to our core loan portfolio.

We price loans to preserve our interest spread and maintain our net interest margin. Loan interest rates may be floating, fixed, or a combination thereof (“hybrid”) throughout the loan term. The rates on hybrid loans typically are fixed until a “reset” date when the rates then become floating. While we do not actively solicit direct consumer loans, we hold consumer loans, consisting primarily of purchased single-family residential mortgage loans and purchased private student loans for