Company: BANC-PF
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001169770-25-000029
Chunk: 22

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 2
Chunk 22
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2024 was generally due to higher net charge-offs and higher qualitative reserves, offset partially by the reserves released for the Civic loans transferred to held for sale in the second quarter of 2024.

Certain circumstances may lead to increased provisions for credit losses on loans and leases in the future. Examples of such circumstances include deterioration in economic conditions and forecasts, an increased amount of classified and/or criticized loans and leases, and net loan and lease and unfunded commitment growth. Deterioration in economic conditions and forecasts may include the rate of economic growth, the unemployment rate, the rate of inflation, changes in the general level of interest rates, changes in real estate values, and adverse conditions in borrowers’ businesses. See further discussion in “- Balance Sheet Analysis - Allowance for Credit Losses on Loans and Leases Held for Investment” contained herein.

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Noninterest Income

The following table summarizes noninterest income by category for the periods indicated:

Three Months EndedSix Months EndedJune 30,March 31,June 30,Noninterest Income2025202520252024(In thousands)Leased equipment income$10,231 $10,784 $21,015 $23,203 Commissions and fees9,641 9,958 19,599 16,771 Service charges on deposit accounts4,456 4,543 8,999 9,245 Gain on sale of loans and leases30 211 241 687 Dividends and (loss) gains on equity investments(114)2,323 2,209 4,234 Warrant income (loss)  1,227 (295)932 (146)LOCOM HFS adjustment(9)— (9)292 Other 7,171 6,126 13,297 9,322 Total noninterest income$32,633 $33,650 $66,283 $63,608 

Second Quarter of 2025 Compared to First Quarter of 2025 

Noninterest income decreased by $1.0 million to $32.6 million for the second quarter from $33.7 million for the first quarter due mainly to a $2.4 million decrease in dividends and gains on equity investments, offset partially by a $1.5 million increase in warrant income. The decrease in dividends and gains on equity investments was primarily related to fair value losses in the second quarter on SBIC investments compared to fair value gains in the first quarter