Company: BANC-PF
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001628280-25-009438
Chunk: 122

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 8
Chunk 122
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of PeriodLossesCharge-offsRecoveriesPeriod(In thousands)Municipal securities$140 $— $— $— $140 Corporate debt securities1,360 — — — 1,360 Total$1,500 $— $— $— $1,500 

140

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

Credit losses on HTM securities are recorded at the time of purchase, acquisition, or when the Company designates securities as HTM. The allowance for credit losses on HTM securities is representative of current expected credit losses that may be incurred over the life of the investment. Accrued interest receivable on HTM securities, which is included in other assets on the consolidated balance sheets, is excluded from the estimate of expected credit losses. HTM U.S. treasury securities and agency-backed MBS securities are considered to have no risk of loss as they are either explicitly or implicitly guaranteed by the U.S. government. The change in fair value in the HTM private label CMBS portfolio is solely driven by changes in interest rates. The Company has no knowledge of any underlying credit issues and the cash flows underlying the debt securities have not changed and are not expected to be impacted by changes in interest rates and, thus, there is no related ACL for this portfolio. The underlying bonds in the Company’s HTM municipal securities and HTM corporate debt securities portfolios are evaluated for credit losses in conjunction with management’s estimate of the allowance for credit losses based primarily on credit ratings. Securities Held-to-Maturity by Credit Quality IndicatorThe Company uses S&P, Moody's, Fitch, Kroll, and Egan Jones ratings as the credit quality indicators for its HTM securities. The following tables present our HTM securities portfolio by the lowest available credit rating as of the dates indicated:December 31, 2024Security TypeAAAAA+AAAA-ABBBNRTotal(In thousands)Amortized Cost:Municipal securities$571,347 $369,072 $218,581 $72,952 $1,667 $— $17,745 $1,251,364 Agency commercial MBS— 440,476 — — — — — 440,476 Private label commercial MBS355,342 — — — — — — 355,342 U.S. Treasury