Company: BANC-PF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001169770-25-000024
Chunk: 19

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 2
Chunk 19
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0 million reduction in the provision for unfunded commitments. The first quarter of 2024 provision was driven by an increase in qualitative reserves related to loans secured by office properties and an increase in quantitative reserves due to an increase in nonaccrual and classified loans and leases.

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 EndedMarch 31,December 31,March 31,Noninterest Income202520242024(In thousands)Leased equipment income$10,784 $10,730 $11,716 Other commissions and fees9,958 8,231 8,142 Service charges on deposit accounts4,543 4,770 4,705 Gain (loss) on sale of loans and leases211 20 (448)Loss on sale of securities— (454)— Dividends and gains on equity investments2,323 18 3,068 Warrant (loss) income  (295)343 178 LOCOM HFS adjustment— (3)330 Other 6,126 5,334 6,125 Total noninterest income$33,650 $28,989 $33,816 

First Quarter of 2025 Compared to Fourth Quarter of 2024 

Noninterest income increased by $4.7 million to $33.7 million for the first quarter of 2025 from $29.0 million for the fourth quarter of 2024 due mainly to a $2.3 million increase in dividends and gains on equity investments, a $1.7 million increase in other commissions and fees, and a $0.8 million increase in other income. The increase in dividends and gains on equity investments was due to higher gains from SBIC investments. The increase in other commissions and fees was due