Company: BANC-PF
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001628280-25-009438
Chunk: 341

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1B
Chunk 341
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)Average loan balance$3,278,784 $3,677,785 $3,527,334 Ratio of net recoveries to average loans— %— %(0.01)%Commercial:Net charge-offs (recoveries) $20,611 $9,536 $(346)Average loan balance$6,111,197 $5,717,669 $8,202,539 Ratio of net charge-offs to average loans0.34 %0.17 %— %Consumer:Net charge-offs$4,865 $2,147 $2,048 Average loan balance$427,221 $416,797 $471,032 Ratio of net charge-offs to average loans1.14 %0.52 %0.43 %

Net charge-offs in 2024 were $85.8 million compared to net charge-offs of $58.2 million in 2023. This change was due primarily to net charge-offs in the real estate mortgage portfolio segment increasing to $60.4 million in 2024 from $46.5 million in 2023, and to net charge-offs in the commercial portfolio segment increasing to $20.6 million in 2024 from $9.5 million in 2023.

Net charge-offs in 2023 were $58.2 million compared to net charge-offs of $4.8 million in 2022. This change was due primarily to net charge-offs in the real estate mortgage portfolio segment increasing to $46.5 million in 2023 from $3.3 million in 2022.

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The following table presents charge-offs by loan portfolio segment, class, and subclass for the years indicated:

Year Ended December 31,Allowance for Credit Losses Charge-offs202420232022(In thousands)Real Estate Mortgage:Commercial real estate$22,433 $13,956 $2,258 SBA program1,154 339 417 Hotel— — 55 Total commercial real estate mortgage23,587 14,295 2,730 Multi-family— — — Residential mortgage242 — 81 Investor-owned residential38,064 21,844 814 Residential renovation1,224 11,231 1,431 Total other residential real estate mortgage39,530 33,075 2,326 Total real estate mortgage63,117 47,370