Company: BANC-PF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001169770-25-000024
Chunk: 20

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 2
Chunk 20
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 to higher loan-related fee income and higher customer service fees. The increase in other income was mainly driven by a $0.7 million increase in the fair value mark on credit-linked notes.

First Quarter of 2025 Compared to First Quarter of 2024

Noninterest income decreased by $0.2 million to $33.7 million for the first quarter of 2025 compared to $33.8 million for the first quarter of 2024 due mainly to a $0.9 million decrease in leased equipment income, a $0.7 million decrease in dividends and gains on equity investments, and a $0.5 million decrease in warrant income, offset partially by a $1.8 million increase in other commissions and fees, and a $0.7 million higher gain on sale of loans and leases. The decrease in leased equipment income reflected lower overall activity, partially offset by a higher gain from early lease terminations. Dividends and gains on equity investments also declined, largely driven by lower gains and income from SBIC investments and a loss recorded on HLBV investments in the first quarter of 2025. In addition, warrant income declined due to a loss from warrant revaluation in the first quarter of 2025 compared to a gain from warrant in the first quarter of 2024. These decreases were partially offset by an increase in other commissions and fees, which benefited from higher loan-related fee income due to higher loan volume, as well as higher customer service fees driven by increased activity. Gain on sale of loans and leases increased compared to the first quarter of 2024, which included a loss recognized from the sale of the lender finance loan portfolio.

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Noninterest Expense

The following table summarizes noninterest expense by category for the periods indicated:

Three Months EndedMarch 31,December 31,March 31,Noninterest Expense202520242024(In thousands)Compensation$86,417 $77,661 $92,236 Customer related expense27,751 31,672 30,919 Information technology and data processing15,099 14,546 15,418 Occupancy15,010 15,678 17,968 Insurance and assessments7,283 11,179 20,461 Intangible asset amortization7,160 7,770 8,404 Leased equipment depreciation6,741 7,096 7,520 Other professional services4,513 5,498 5,075 Loan expense