Company: BANC-PF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001169770-25-000024
Chunk: 18

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 2
Chunk 18
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.88 %0.80 %0.57 %Classified loans and leases held for investment $764,723 $563,502 $366,729 Special mention loans and leases held for investment$937,014 $1,097,315 $556,509 

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(1)    See "- Balance Sheet Analysis - Allowance for Credit Losses on Loans and Leases Held for Investment" for detail of charge-offs and recoveries by loan portfolio segment, class, and subclass for the periods presented.

74

Provision for credit losses are charged to earnings for the ALLL, the reserve for unfunded loan commitments, and the ACL on HTM and AFS securities. The provision for credit losses on our loans and leases held for investment is based on our allowance methodology and is an expense that, in our judgment, is required to maintain an adequate ACL. For further details on our loan-related ACL methodology, see “- Balance Sheet Analysis - Allowance for Credit Losses on Loans and Leases Held for Investment” contained herein.

First Quarter of 2025 Compared to Fourth Quarter of 2024 and First Quarter of 2024

The provision for credit losses was $9.3 million for the first quarter of 2025 compared to $12.8 million for the fourth quarter of 2024 and $10.0 million for the first quarter of 2024. 

•The first quarter of 2025 provision included a $9.7 million provision for loan losses and a $0.5 million provision for unfunded loan commitments, offset partially by a $0.9 million reversal of the provision for credit losses related to HTM securities. The first quarter of 2025 provision for loans and unfunded loan commitments was primarily driven by net charge-off activity experienced during the quarter, partially offset by lower specific reserves and changes in portfolio mix driven by growth in loan segments with low expected credit losses.   

•The fourth quarter of 2024 provision included an $11.5 million provision for loan losses and a $1.5 million provision for unfunded loan commitments, offset partially by a $0.2 million reversal of the provision for credit losses related to AFS securities. The fourth quarter of 2024 provision for loans and unfunded loan commitments was driven primarily by net charge-off activity during the quarter. 

•The first quarter of 2024 provision included an $11.0 million provision for loan losses offset partially by a $1.