Company: BANC-PF
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001628280-25-050892
Chunk: 178

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 178
---
1,370 — 1,370 — Residential — — — — Total real estate construction and land1,370 — 1,370 — Total real estate2,972 298 3,582 2,536 Commercial:Lender finance — — — — Equipment finance— — — — Premium finance6 5 15 — Other asset-based1,488 — 1,488 113 Total asset-based1,494 5 1,503 113 Equity fund loans— — — — Venture lending233 — 283 1,270 Total venture capital233 — 283 1,270 Secured business loans2,215 195 2,711 340 Warehouse lending— — — — Other lending1,891 2,088 5,727 3,233 Total other commercial4,106 2,283 8,438 3,573 Total commercial5,833 2,288 10,224 4,956 Consumer117 140 319 413 Total recoveries$8,922 $2,726 $14,125 $7,905 

102

Credit Quality

The overall quality of our loan portfolio remains strong, supported by disciplined underwriting, borrower strength, 

and robust credit metrics. Credit quality metrics improved primarily due to the transfer of loans to held for sale in connection with the strategic loan sales process commenced in the second quarter of 2025. These sales and transfers contributed to broad-based improvements across key credit quality metrics. 

As of September 30, 2025, criticized loans and leases decreased by $391.3 million, or 24%, from December 31, 2024, driven by special mention loans and leases decreasing by 54% to 2.10% of total loans and leases held for investment, down from 4.61%. This improvement was partially offset by classified loans and leases increasing during the same period by 36% to 3.17% of total loans and leases, up from 2.37%, largely due to a risk rating framework update implemented within the Venture Banking loan portfolio. Classified loans and leases also included a $49.6 million commercial real estate loan which became classified in the third quarter of 2025. Subsequent to the end of the third quarter, the