Company: BANC-PF
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001628280-25-050892
Chunk: 37

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 2
Chunk 37
---
. 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 borrower entered into a contract to sell the underlying property at a price above our loan amount. The sale is expected to close in the fourth quarter.

Nonperforming Assets, Classified Loans and Leases, and Special Mention Loans and Leases     

The following table presents information on our nonperforming assets, classified loans and leases, and special mention loans and leases as of the dates indicated:

September 30,December 31,20252024(Dollars in thousands)Nonaccrual loans and leases held for investment $174,541 $189,605 Accruing loans contractually past due 90 days or more— — Total nonperforming loans and leases 174,541 189,605 Foreclosed assets, net4,790 9,734 Total nonperforming assets$179,331 $199,339 Classified loans and leases held for investment $763,582 $563,502 Special mention loans and leases held for investment505,979 1,097,315 Criticized loans and leases held for investment$1,269,561 $1,660,817 Nonaccrual loans and leases held for investment to loans and leases held for investment0.72 %0.80 %Nonperforming assets to loans and leases held for investment and foreclosed assets, net0.74 %0.84 %Classified loans and leases held for investment to loans and leases held for investment3.17 %2.37 %Special mention loans and leases held for investment to loans and leases held for investment2.10 %