Company: BANC-PF
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001628280-25-009438
Chunk: 255

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1A
Chunk 255
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 credit losses, our business, financial condition, and profitability may suffer.

•There are risks associated with our lending activities, and our allowance for credit losses may prove to be insufficient to absorb actual losses in our loan portfolio.

•Our business and operating results could be adversely affected by uncertainty in the political environment and governmental fiscal and monetary policies.

•Our business, financial position, and results of operations may be adversely affected by difficult economic conditions, including inflationary pressures or volatility in the financial markets.

•Our business may be adversely affected by credit risk associated with residential property and declining property values.

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•Our loan portfolio possesses increased risk due to our level of adjustable rate loans.

•Our underwriting practices may not protect us against losses in our loan portfolio.

•Repayment of our commercial and industrial loans is often dependent on the cash flows of the borrower, which may be unpredictable, and the collateral securing these loans may not be sufficient to repay the loan in the event of default.

•Our real estate loan portfolio is subject to certain risks including market, environmental, and project-specific risks.

•Secondary mortgage market conditions could have a material adverse impact on our business, results of operations, financial condition, or liquidity.

•Any breach of representations and warranties made by us to our loan purchasers or credit default on our loan sales may require us to repurchase loans we have sold.

•Credit impairment in our investment securities portfolio could adversely affect our continuing operations.

•Our income property loans, consisting of commercial real estate and multi-family loans, involve higher principal amounts than other loans and repayments of these loans may be dependent on factors outside our control or the control of our borrowers.

•Our business is subject to interest rate risk and variations in interest rates may hurt our profits.

•A reduction in our credit ratings could adversely affect our access to capital and could increase our cost of funds.

•We have a number of large credit relationships and individual commitments.

Funding and Liquidity Risks 

•We may not be able to develop and maintain a strong core deposit base or other low cost funding sources.

•Liquidity risk could impair our ability to fund operations and jeopardize our financial condition.

•Problems encountered by, or adverse news concerning, other financial institutions may adversely affect financial and capital markets generally as well as the Bank.

•We are subject to regulatory capital requirements, which could be made more stringent by our regulators.

•The FRB may require us to commit capital resources or take other action to support the Bank.

•We may elect or be compelled to seek