Company: BANC-PF
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001628280-25-050892
Chunk: 107

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 107
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$3,459,409 $6,319,472 $414,490 $23,527,777 The allowance for loan and lease losses increased by $11.2 million in the third quarter of 2025 to $240.5 million compared to the second quarter due primarily to a $8.7 million provision and net recoveries of $2.5 million. For additional information regarding the calculation of the ALLL using the CECL methodology, including discussion of forecasts used to estimate the allowance, please see Note 1(j). Nature of Operations and Summary of Significant Accounting Policies - Allowance for Credit Losses on Loans and Leases Held for Investment of the Notes to Consolidated Financial Statements contained in "Item 8. Financial Statements and Supplementary Data" of the Form 10-K.

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

A loan is considered collateral-dependent, and is individually evaluated for reserve purposes, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table summarizes collateral-dependent loans held for investment by collateral type as of the following dates:September 30, 2025December 31, 2024RealBusiness RealBusinessPropertyAssetsTotalPropertyAssetsTotal(In thousands)Real estate mortgage$166,678 $— $166,678 $167,060 $— $167,060 Commercial— 3,465 3,465 — 10,870 10,870      Total$166,678 $3,465 $170,143 $167,060 $10,870 $177,930 Allowance for Credit LossesThe ACL is the combination of the ALLL and the reserve for unfunded loan commitments. The reserve for unfunded loan commitments is included within "Accrued interest payable and other liabilities" on the condensed consolidated balance sheets. The following tables present a summary of the activity in the ALLL and reserve for unfunded loan commitments for the periods indicated:Three Months EndedSeptember 30, 2025Allowance forReserve forTotalLoan andUnfunded LoanAllowance forLease LossesCommitmentsCredit Losses(In thousands)Balance, beginning of period$229,344 $29,221 $258,565 Charge-offs(6,465)— (6,465)Re