Company: BANC-PF
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001169770-25-000029
Chunk: 34

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 2
Chunk 34
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 for credit losses on loans and leases held for investment as quantified in the ACL incorporates certain management assumptions and is reflective of historical credit experience, economic forecasts viewed to be reasonable and supportable, current loan and lease composition, and relative credit risks known as of the balance sheet date.

Management believes the ACL is appropriate for the current expected credit losses in our loan and lease portfolio and associated unfunded loan commitments, and the credit risk ratings and inherent loss rates currently assigned are reasonable and appropriate as of the reporting date. It is possible that others, given the same information, may at any point in time reach different conclusions that could result in a significant impact to the Company's financial statements. 

 The following table presents information regarding the ACL on loans and leases held for investment as of the dates indicated:June 30,December 31,Allowance for Credit Losses Data 20252024(Dollars in thousands)Allowance for loan and lease losses$229,344 $239,360 Reserve for unfunded loan commitments29,221 29,071 Total allowance for credit losses$258,565 $268,431 Allowance for loan and lease losses to loans and leases held for investment0.95 %1.01 %Allowance for credit losses to loans and leases held for investment1.07 %1.13 %

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The following table presents the changes in our ACL on loans and leases held for investment for the periods indicated:Three Months EndedSix Months EndedRoll Forward of Allowance for Credit LossesJune 30,March 31,June 30,on Loans and Leases Held for Investment2025202520252024(Dollars in thousands)Balance, beginning of period $264,557 $268,431 $268,431 $311,258 Provision for credit losses:Addition to allowance for loan and lease losses38,580 9,700 48,280 23,000 (Reduction in) addition to reserve for unfunded loan commitments(350)500 150 (2,000)Total provision for credit losses38,230 10,200 48,430 21,000 Loans and leases charged off:Real estate mortgage(16,080)(5,789)(21,869)(56,358)Real estate construction and land(21,536)— (21,536)— Commercial(8,593)(9,582)(18,175)(3,852)Consumer(739)(