Company: BANC-PF
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001628280-25-009438
Chunk: 448

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1B
Chunk 448
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BANC OF CALIFORNIA, INC. AND SUBSIDIARIESNotes to Consolidated Financial Statements

NOTE 8.  OTHER ASSETS

The following table presents the detail of our other assets as of the dates indicated:December 31, Other Assets20242023(In thousands)Investments:   LIHTC investments $295,964 $347,478    SBIC investments 109,636 105,433    Alternative energy partnerships (HLBV investments)17,472 18,442    Other equity and CRA investments143,152 156,957       Total investments566,224 628,310 Interest receivable125,469 138,522 Operating lease ROU assets, net (1)100,092 133,126 Prepaid expenses39,432 43,498 Taxes receivable18,009 34,268 Foreclosed assets, net9,734 7,394 Equity warrants (2)3,763 3,689 Other receivables/assets51,231 142,442 Total other assets$913,954 $1,131,249 ____________________(1)    See Note 9. Leases for further details regarding the operating lease ROU assets.(2)    See Note 15. Fair Value Measurements for information regarding equity warrants.InvestmentsThe Company invests as a limited partner in LIHTC partnerships that operate qualified affordable housing projects and generate tax benefits for investors, including federal low income housing tax credits. The partnerships are deemed to be VIEs because they do not have sufficient equity investment at risk and are structured with non-substantive voting rights; however, we are not the primary beneficiary of the VIEs and do not consolidate them. We amortize the investment in proportion to the allocated tax benefits using the proportional amortization method of accounting and record such benefits net of investment amortization in income tax expense.The Company also invests as a limited partner in SBIC investments. All of our SBIC investments meet the definition of investment companies as defined in ASC 946. We elected the practical expedient available in Topic 820 which permits the use of NAV per share or equivalent to value investments in entities that are or are similar to investment companies. SBICs are required to value and report their investments at estimated fair value. We record the unrealized gains and losses resulting from changes in the fair value of our SBIC investments in "Noninterest income