Company: BANC-PF
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001628280-25-050892
Chunk: 124

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 124
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 information about quantitative inputs and assumptions used to determine the fair values provided by our third-party pricing service for our Level 3 corporate debt securities available-for-sale measured at fair value on a recurring basis as of the date indicated: September 30, 2025Corporate Debt SecuritiesInput orWeightedRangeAverageUnobservable Inputsof InputsInput (1)Spread to 10 Year Treasury3.1% - 8.5%5.5%Discount rates7.2% - 12.7%9.7%____________________(1)    Unobservable inputs for corporate debt securities were weighted by the relative fair values of the instruments.

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BANC OF CALIFORNIA, INC. AND SUBSIDIARIESNotes to Condensed Consolidated Financial Statements (Unaudited)

The following table presents information about quantitative inputs and assumptions used in the modified Black-Scholes option pricing model to determine the fair value for our Level 3 equity warrants measured at fair value on a recurring basis as of the date indicated:September 30, 2025Equity WarrantsWeighted RangeAverage Unobservable Inputsof InputsInput (2)Volatility (1)17.4% - 1,905.1%25.0%Risk-free interest rate3.6% - 4.2%3.7%Remaining life assumption (in years)0.08 - 4.973.22____________________(1)    The high-end volatility input relates to an out-of-the-money warrant with an immaterial fair value and near-term expiration.(2)    Unobservable inputs for equity warrants were weighted by the relative fair values of the instruments.The following table summarizes activity for our Level 3 corporate debt securities available-for-sale, equity warrants, and credit-linked notes measured at fair value on a recurring basis for the period indicated: Corporate Equity Credit-Linked Debt SecuritiesWarrantsNotes(In thousands)Balance, December 31, 2024$2,130 $3,763 $118,838 Total included in earnings— 1,365 141 Total included in other comprehensive income 195 — (990)Issuances— 247 — Principal payments— — (2,967)Exercises and settlements — (1,955)— Transfers to Level 1 (equity investments with readilydeterminable fair values)— (2)— Balance, September 30, 2025$2,325 $3