Company: BANC-PF
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001628280-25-050892
Chunk: 175

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 175
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 changing key assumptions such as the macro-economic variable inputs from the economic forecasts, the reasonable and supportable forecast period, prepayment rates, loan segmentation, historical loss factors and/or periods, among others, would all change the outcome of the quantitative components of the ACL. Those results would then need to be assessed from a qualitative perspective, potentially requiring further adjustments to the qualitative component to arrive at a reasonable and appropriate ACL.

The determination of the ACL is complex and highly dependent on numerous models, assumptions, and judgments made by management. Management's current expectation 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:September 30,December 31,Allowance for Credit Losses Data 20252024(Dollars in thousands)Allowance for loan and lease losses$240,501 $239,360 Reserve for unfunded loan commitments30,221 29,071 Total allowance for credit losses$270,722 $268,431 Allowance for loan and lease losses to loans and leases held for investment1.00 %1.01 %Allowance for credit losses to loans and leases held for investment1.12 %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 EndedNine Months EndedRoll Forward of Allowance for Credit LossesSeptember 30,June 30,September 30,on Loans and Leases Held for Investment2025202520252024(Dollars in thousands)Balance, beginning of period $258,565 $264,557 $268,431 $311,258 Provision for credit losses:Addition to allowance for loan and lease losses8,700 38,580 56,980 32,000 Addition to