Company: BANC-PF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001169770-25-000024
Chunk: 158

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 8
Chunk 158
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%$11,722,323 71 %Colorado1,162,155 7 %1,224,295 7 %Arizona574,955 4 %540,726 3 %Texas540,773 3 %542,312 3 %Florida432,305 3 %437,987 3 %Nevada390,585 2 %388,627 2 %Washington386,025 2 %393,584 2 %Oregon296,754 2 %307,088 2 %Utah144,705 1 %147,205 1 %Illinois105,845 — %106,463 1 %Total of 10 largest states15,590,473 95 %15,810,610 95 %All other states763,223 5 %789,342 5 %Total real estate loans held for investment$16,353,696 100 %$16,599,952 100 %

At March 31, 2025 and December 31, 2024, 71% and 71% of our real estate loans were collateralized by property located in California because our full-service branches and our community banking activities are primarily located in California.

When considering the markets in which to pursue real estate loans, we consider the market conditions, our current loan portfolio concentrations by property type and by market, and our past experiences with the borrower, within the specific market, and with the property type.

When underwriting real estate loans, we seek to mitigate risk by using the following framework:

•requiring borrowers to invest and maintain a meaningful cash equity interest in the properties securing our loans;

•reviewing each loan request and renewal individually;

•using a credit committee approval process for the approval of loan requests (or aggregated credit exposures) over a certain dollar amount;

•adhering to written loan acceptance standards, including among other factors, maximum loan to acquisition or construction cost ratios, maximum loan to as-is or stabilized value ratios, and minimum operating cash flow requirements;

•considering market rental and occupancy rates relative to our underwritten or projected rental and occupancy rates;

•considering the experience of our borrowers and our borrowers’ abilities to operate and manage the properties securing our loans;

•evaluating the supply of comparable real estate and new supply under construction in the collateral's market area;

•obtaining independent third-party appraisals