Company: BANC-PF
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001628280-25-050892
Chunk: 121

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 121
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 an approximately $2.2 billion reference pool of previously purchased single-family residential mortgage loans. The principal balance of the credit-linked notes was $116.2 million at September 30, 2025. The carrying value of the credit-linked notes at September 30, 2025 was the estimated fair value of $115.0 million. For the three and nine months ended September 30, 2025, the interest expense on the credit-linked notes totaled $4.5 million and $13.5 million and totaled $5.0 million and $15.0 million for the three and nine months ended September 30, 2024, and was recorded in "Interest expense - borrowings" on the condensed consolidated statements of earnings.The following table presents the changes in fair value of the credit-linked notes for which the fair value option has been elected for the periods indicated:   Three Months EndedNine Months EndedSeptember 30,September 30,Credit-Linked Notes2025202420252024 (In thousands)Changes in fair value - gains (losses) included in earnings$14 $4,399 $(141)$1,624 Changes in fair value - other comprehensive income (loss) $1,361 $(1,495)$990 $(2,110)The following table provides information about the credit-linked notes carried at fair value as of the dates indicated:  September 30,December 31,Credit-Linked Notes20252024(In thousands)Carrying value reported on the condensed consolidated balance sheets$115,022 $118,838 Aggregate unpaid principal balance in excess of fair value$1,150 $301 

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

NOTE 12.  FAIR VALUE MEASUREMENTS          

The Company uses fair value to measure certain assets and liabilities on a recurring basis, primarily AFS securities, derivatives, and certain debt liabilities. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period and such measurements are therefore considered “nonrecurring” for purposes of disclosing our fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for individually evaluated loans and leases and other real estate owned and also to record impairment on certain assets, such as goodwill, CDI, and other long-lived assets.For information regarding the valuation