Company: BANC-PF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001169770-25-000024
Chunk: 24

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 2
Chunk 24
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 million increase in the fair value of AFS securities due to higher interest rates, partially offset by $97.9 million of principal paydowns and $1.9 million of net amortization. As principal paydowns occurred, we reinvested in higher-yield securities to enhance our investment yield.

As of March 31, 2025, AFS securities had aggregate unrealized net after-tax losses in AOCI of $172.5 million compared to $200.1 million at December 31, 2024.

Securities Held-to-Maturity 

The following table presents the composition and duration of our HTM securities as of the dates indicated:

 March 31, 2025December 31, 2024Amortized% of DurationAmortized% of DurationSecurity TypeCostTotal(in years)CostTotal(in years) (Dollars in thousands)Municipal securities $1,252,455 55 %8.2$1,251,364 55 %8.0Agency commercial MBS442,172 19 %5.7440,476 19 %5.9Private label commercial MBS356,586 15 %5.4355,342 15 %5.6U.S. Treasury securities190,726 8 %5.7189,985 8 %5.9Corporate debt securities70,573 3 %4.470,482 3 %4.0Total securities held-to-maturity$2,312,512 100 %7.0$2,307,649 100 %7.0

HTM securities increased by $5.8 million in the first quarter to $2.3 billion at March 31, 2025 compared to $2.3 billion at December 31, 2024. The increase was primarily due to the accretion of $8.3 million of the remaining unrealized losses balance deferred in other comprehensive income ("OCI") from a prior transfer of securities from AFS to HTM on June 1, 2022, and the release of $0.9 million in credit loss reserve, partially offset by $3.2 million of net amortization and $0.3 million of principal paydowns.

As of March 31, 2025, HTM securities had aggregate unrealized net after-tax losses in AOCI of $151.9 million remaining from the balance established at the time of