Company: BANC-PF
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001169770-25-000029
Chunk: 73

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 73
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 MoreTotalGrossGrossGrossFairUnrealizedFairUnrealizedFairUnrealizedSecurity TypeValueLossesValueLossesValueLosses (In thousands)Agency residential MBS$— $— $861,840 $(189,761)$861,840 $(189,761)Agency commercial MBS40,291 (87)11,273 (959)51,564 (1,046)Agency residential CMOs273,347 (1,994)104,757 (18,917)378,104 (20,911)Municipal securities — — 594 (8)594 (8)Corporate debt securities15,968 (32)241,744 (31,354)257,712 (31,386)Private label residential CMOs180,915 (1,031)129,178 (34,681)310,093 (35,712)Collateralized loan obligations38,771 (29)— — 38,771 (29)Private label commercial MBS— — 12,372 (1,213)12,372 (1,213)Asset-backed securities15,600 (74)— — 15,600 (74)SBA securities— — 4,200 (364)4,200 (364)Total$564,892 $(3,247)$1,365,958 $(277,257)$1,930,850 $(280,504)

18

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

The securities that were in an unrealized loss position at June 30, 2025, were considered impaired and required further review to determine if the unrealized losses were credit-related. As of June 30, 2025, the Company had recorded an allowance for credit losses on securities available-for-sale of $0.8 million on one corporate debt security. Except for the one corporate debt security noted, we concluded the unrealized losses were a result of the level of market interest rates relative to the types of securities and pricing changes caused by shifting supply and demand dynamics and not a result of downgraded credit ratings or other indicators of deterioration of the underlying issuers' ability to repay. We also considered the seniority of the tranches and U.S. government agency guarantees,