Company: BANC-PF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001169770-25-000024
Chunk: 72

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 8
Chunk 72
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,365,958 $(277,257)$1,930,850 $(280,504)

16

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

The securities that were in an unrealized loss position at March 31, 2025, were considered impaired and required further review to determine if the unrealized losses were credit-related. After completing such review, we concluded the unrealized losses were a result of the level of market interest rates relative to the types of securities and pricing changes caused by shifting supply and demand dynamics and not a result of downgraded credit ratings or other indicators of deterioration of the underlying issuers' ability to repay. We also considered the seniority of the tranches and U.S. government agency guarantees, if any, to assess whether an unrealized loss was credit-related. Accordingly, we determined the unrealized losses were not credit-related. As of March 31, 2025, we believe there was no credit impairment as the decline in fair value of our securities since acquisition was primarily attributable to changes in interest rates and credit spreads. Further we do not currently intend to sell any of the securities in an unrealized loss position and it is not more likely than not the Company will be required to sell these securities before their anticipated recovery. As such, we recognized the unrealized losses in "Accumulated other comprehensive loss, net" of "Stockholders' equity" on the condensed consolidated balance sheets.Contractual Maturities of Securities Available-for-SaleThe following tables present the contractual maturities of our AFS securities portfolio based on amortized cost and fair value as of the dates indicated:March 31, 2025Due AfterDue AfterDue One Year Five YearsDue WithinThroughThroughAfterSecurity TypeOne YearFive YearsTen YearsTen YearsTotal(In thousands)Amortized Cost:Agency residential MBS$— $— $— $1,033,674 $1,033,674 Agency commercial MBS— 39,959 9,994 12,173 62,126 Agency residential CMOs— — 14,655 565,021 579,676 Municipal securities— 602 — — 602 Corporate debt securities— 7,500 281,577 — 289,077 Private label residential CMOs— — — 334,859 334,859 Coll