Company: BANC-PF
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001628280-25-050892
Chunk: 171

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 171
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 portfolio are adequately collateralized, they possess credit characteristics or risk attributes that have contributed to credit migration, and accordingly, the Company commenced the sales process for these loans.  

As of June 30, 2025, $30.5 million of these loans had been sold at market value of $28.5 million, and the remaining $476.2 million were transferred to held for sale and carried at the lower of cost or market value of $441.2 million. The loans transferred to held for sale consisted of $258.4 million in commercial real estate construction loans, $163.2 million in commercial real estate mortgage loans, and $19.6 million in multi-family loans.

During the third quarter of 2025, the Company sold $207.9 million of these loans that had been transferred to held for sale, and $55.6 million of such loans were repaid prior to sale. Sold loans consisted of $174.9 million in commercial real estate construction loans, $20.4 million in multi-family loans, and $12.2 million in commercial real estate mortgage loans. These loan sales met the requisite criteria to be accounted for as sales in accordance with ASC 860, Transfers and Servicing. In connection with the sale, the Company recognized a loss of $0.4 million on the loans sold. As of September 30, 2025, $180.9 million of loans remained classified as held for sale under the strategic loan sale initiative.

The following table presents a roll forward of loans and leases held for investment for the period indicated:

Nine Months EndedRoll Forward of Loans and Leases Held for InvestmentSeptember 30, 2025(In thousands)Balance, beginning of period$23,781,663 Additions:Production2,880,263 Disbursements3,941,273 Total production and disbursements6,821,536 Reductions:Payoffs (3,093,011)Paydowns(2,839,746)Total payoffs and paydowns(5,932,757)Sales(35,004)Transfers to foreclosed assets(6,725)Charge-offs(69,964)Transfers to loans held for sale(448,107)Total reductions(6,492,557)Net increase 328,979 Balance, end of period$24,110,642 

96

Real Estate Loans Held for Investment    

Our real estate loan portfolio encompasses commercial real estate mortgage, residential real estate mortgage