Company: BANC-PF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001169770-25-000024
Chunk: 98

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 8
Chunk 98
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 direct financing leases, lease receivables are recorded on the balance sheet, but the leased equipment is not, although we generally retain legal title to the leased equipment until the end of each lease. Direct financing leases are stated at the net amount of minimum lease payments receivable, plus any unguaranteed residual value, less the amount of unearned income and net acquisition discount at the reporting date. Direct lease origination costs are amortized using the effective interest method over the life of the leases. Direct financing leases are subject to our accounting for ALLL. See Note 7. Leases for information regarding operating leases where we are the lessor. The following table provides the components of leases receivable income for the periods indicated: Three Months EndedMarch 31,20252024(In thousands)Component of leases receivable income:Interest income on net investments in leases$4,055 $4,735 The following table presents the components of leases receivable as of the dates indicated:March 31, 2025December 31, 2024(In thousands)Net Investment in Direct Financing Leases:Lease payments receivable$183,539 $202,815 Unguaranteed residual assets21,928 22,489 Deferred costs and other1,730 1,955 Aggregate net investment in leases$207,197 $227,259 

35

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

The following table presents maturities of leases receivable as of the date indicated:March 31, 2025(In thousands)Period ending December 31, 2025$53,211 202656,995 202741,810 202827,078 202920,169 Thereafter5,229 Total undiscounted cash flows204,492 Less: Unearned income(20,953)Present value of lease payments$183,539 Allowance for Loan and Lease LossesThe following tables present a summary of the activity in the ALLL on loans and leases held for investment by loan portfolio segment for the periods indicated:Three Months Ended March 31, 2025Real EstateReal EstateConstructionMortgageand LandCommercialConsumerTotal(In thousands)Allowance for Loan and Lease Losses:Balance, beginning of period$145,754 $10,940 $67,833 $14,833 $239,360