Company: BANC-PF
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001628280-25-050892
Chunk: 104

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 104
---
 to Condensed Consolidated Financial Statements (Unaudited)

 Leases ReceivableWe provide equipment financing to our customers primarily with operating and direct financing leases. For direct financing leases, lease receivables are recorded on the balance sheet, but the leased equipment is not, although we generally retain legal title to the leased equipment until the end of each lease. Direct financing leases are stated at the net amount of minimum lease payments receivable, plus any unguaranteed residual value, less the amount of unearned income and net acquisition discount at the reporting date. Direct lease origination costs are amortized using the effective interest method over the life of the leases. Direct financing leases are subject to our accounting for ALLL. See Note 7. Leases for information regarding operating leases where we are the lessor. The following table provides the components of leases receivable income for the periods indicated: Three Months EndedNine Months EndedSeptember 30,September 30,2025202420252024(In thousands)Component of leases receivable income:Interest income on net investments in leases$3,454 $4,711 $11,199 $14,323 The following table presents the components of leases receivable as of the dates indicated:September 30, 2025December 31, 2024(In thousands)Net Investment in Direct Financing Leases:Lease payments receivable$141,372 $202,815 Unguaranteed residual assets20,424 22,489 Deferred costs and other1,309 1,955 Aggregate net investment in leases$163,105 $227,259 The following table presents maturities of leases receivable as of the date indicated:September 30, 2025(In thousands)Period ending December 31, 2025$14,550 202654,062 202739,116 202825,703 202918,693 Thereafter4,240 Total undiscounted cash flows156,364 Less: Unearned income(14,992)Present value of lease payments$141,372 

44

BANC OF CALIFORNIA, INC. AND SUBSIDIARIESNotes to Condensed Consolidated Financial Statements (Unaudited)

Allowance for Loan and Lease LossesThe following tables present a summary of the activity in the ALLL on loans and leases held for investment by loan portfolio segment for the periods indicated:Three Months Ended September 30, 2025Real EstateReal