Company: BANC-PF
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001628280-25-009438
Chunk: 462

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1B
Chunk 462
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 notes at December 31, 2024 was $118.8 million, which approximated the fair value. For the years ended December 31, 2024, 2023, and 2022, interest expense on the credit-linked notes totaled $19.8 million, $20.2 million, and $4.7 million, respectively, and is recorded in "Interest expense - Borrowings" on the consolidated statements of earnings (loss).The following table presents the changes in fair value of the credit-linked notes for the which the fair value option has been elected for the years indicated:   Year Ended December 31, Credit-Linked Notes202420232022 (In thousands)Changes in fair value - gains (losses) included in earnings$1,411 $(5,404)$(911)Changes in fair value - other comprehensive (loss) income $(2,589)$7,794 $— The following table provides information about the credit-linked notes carried at fair value as of the dates indicated:  December 31,Credit-Linked Notes20242023(In thousands)Carrying value reported on the consolidated balance sheets$118,838 $123,116 Aggregate unpaid principal balance in excess of (less than) fair value$301 $1,479 

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

NOTE 15.  FAIR VALUE MEASUREMENTS     ASC Topic 820, “Fair Value Measurement,” defines fair value, establishes a framework for measuring fair value including a three‑level valuation hierarchy, and expands disclosures about fair value measurements. Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date reflecting assumptions that a market participant would use when pricing an asset or liability. The hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows:•Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets.•Level 2: Observable inputs other than Level 1, including quoted prices for similar assets and liabilities in active markets, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data, either directly or indirectly, for substantially the full term of the financial instrument. This category generally includes agency residential CMOs, agency commercial and residential MBS, municipal securities, collateralized