Company: BANC-PF
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001628280-25-009438
Chunk: 154

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 8
Chunk 154
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. We rent or sublease certain office space to third parties. Our subleases consist of operating leases for offices that we have fully or partially vacated.Certain of our lease agreements also include rental payments that adjust periodically based on changes in the CPI. We initially measured our lease payments using the index at the lease commencement date. Subsequent increases in the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred. The ROU assets and lease liabilities are not re-measured as a result of changes in the CPI. Our lease agreements do not contain any purchase options, residual value guarantees, or restrictive covenants.  

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

Operating Leases as a LesseeOur lease expense is a component of "Occupancy expense" on our consolidated statements of earnings (loss). The following table presents the components of lease expense for the years indicated:Year Ended December 31, 202420232022(In thousands)Operating Lease Expense:Fixed costs$33,298 $33,672 $33,323 Variable costs524 217 129 Short-term lease costs625 831 1,466 Sublease income(4,753)(2,081)(4,048)Net lease expense$29,694 $32,639 $30,870 The following table presents supplemental cash flow information related to leases for the years indicated:Year Ended December 31, 202420232022(In thousands)Cash paid for amounts included in the measurement of lease liabilities:Operating cash flows from operating leases$37,333 $37,064 $35,677 ROU assets obtained in exchange for lease obligations:Operating leases$5,429 $39,985 $39,661 The following table presents supplemental balance sheet and other information related to operating leases as of the date indicated:December 31, 20242023(Dollars in thousands)Operating leases:Operating lease right-of-use assets, net$100,092 $133,126 Operating lease liabilities$124,355 $161,308 Weighted average remaining lease term (in years)5.96.1Weighted average discount rate3.53 %3.40 %The following table presents the maturities of operating lease liabilities as of the date indicated: December 31, 2024(In thousands)Year Ending December 31,