Company: BANC-PF
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001628280-25-009438
Chunk: 366

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1B
Chunk 366
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 reprice higher at a pace faster than rates earned on our interest-earning assets.

At December 31, 2024, our interest rate risk profile is “neutral”, as compared to a slightly “liability sensitive” interest rate risk profile position as of December 31, 2023. This shift to neutral is primarily due to the change in the mix of loans related to fixed rate loan sales, variable rate loan growth, and the AFS securities portfolio repositioning during 2024. Given the uncertainty of the magnitude, timing, and direction of future interest rate movements, as well as the shape of the yield curve, actual results may vary materially from those predicted by our model. 

The following table presents the projected change in the Company’s economic value of equity at December 31, 2024 and net interest income over the next twelve months, that would occur upon an immediate change in interest rates, but without giving effect to any steps that management might take to counteract that change:

Change in Interest Rates in Basis Points (bps) (1)Economic Value of EquityNet Interest IncomeAmountPercentageAmountPercentageDecember 31, 2024AmountChangeChangeAmountChangeChange(Dollars in millions)+100 bps$5,550 $35 0.6 %$1,090 $6 0.6 %0 bps$5,515 $1,084 -100 bps$5,809 $294 5.3 %$1,075 $(9)(0.8)%____________________

(1)Assumes an instantaneous uniform change in interest rates at all maturities and no rate shock has a rate lower than zero percent.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Contents

Management’s Report on Internal Control Over Financial Reporting107Reports of Independent Registered Public Accounting Firms(Ernst & Young LLP, Irvine, CA, Auditor Firm ID: 42)(KPMG LLP, Irvine, CA, Auditor Firm ID: 185)108Consolidated Balance Sheets as of December 31, 2024 and 2023112Consolidated Statements of Earnings (Loss) for the Years Ended December 31, 2024, 2023, and 2022113Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 2024, 2023, and 2022114Consolidated