Company: BANC-PF
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001169770-25-000029
Chunk: 27

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 2
Chunk 27
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 losses, offset partially by purchases of $166.9 million and a $46.7 million increase in the fair value of AFS securities due to lower interest rates. As principal paydowns occurred, we reinvested in higher-yield securities to enhance our investment yield.

As of June 30, 2025, AFS securities had aggregate unrealized net after-tax losses in AOCI of $166.6 million compared to $200.1 million at December 31, 2024. The decrease in the AFS unrealized net losses related primarily to lower interest rates and the resulting impact on valuations.

Securities Held-to-Maturity 

The following table presents the composition and duration of our HTM securities as of the dates indicated:

 June 30, 2025December 31, 2024Amortized% of DurationAmortized% of DurationSecurity TypeCostTotal(in years)CostTotal(in years) (Dollars in thousands)Municipal securities $1,253,568 54 %8.5$1,251,364 55 %8.0Agency commercial MBS443,875 19 %5.5440,476 19 %5.9Private label commercial MBS357,825 16 %5.2355,342 15 %5.6U.S. Treasury securities191,487 8 %5.4189,985 8 %5.9Corporate debt securities70,665 3 %4.370,482 3 %4.0Total securities held-to-maturity$2,317,420 100 %7.1$2,307,649 100 %7.0

HTM securities increased by $10.6 million to $2.3 billion at June 30, 2025 compared to $2.3 billion at December 31, 2024. The increase was primarily due to the accretion of $16.7 million of the remaining unrealized losses balance deferred in other comprehensive income ("OCI") from a prior transfer of securities from AFS to HTM on June 1, 2022, and the release of $0.8 million in credit loss reserve, offset partially by $6.3 million of net amortization and $0.6 million of principal paydowns.

As of June 30, 2025, HTM securities had aggregate unrealized net after-tax losses in AOCI of