BANC OF CALIFORNIA, INC.BANC

BANC OF CALIFORNIA, INC. Segments Disclosure

10-KFiled Feb 27, 20262 min read
SEGMENT REPORTING
The Company provides banking and treasury management services to small, middle-market, and venture-backed businesses. The principal business activities of the Company are gathering deposits, originating and servicing loans and leases and investing in investment securities. The Company's CODM is the Chief Executive Officer.
The Company operates as one reportable segment - Commercial Banking - based on how the CODM manages the business activities, which are described above. The CODM uses net earnings (loss) to evaluate income (loss) generated from segment assets, assess performance, decide how to allocate resources, determine dividend availability, establish management's compensation, and guide other strategic decisions. The accounting policies of the Commercial Banking segment are the same as those described in "Note 1. Nature of Operations and Summary of Significant Accounting Policies." Additionally, the Company does not have intra-entity sales or transfers.
The following presents our operating segment income statement, including significant expense categories, regularly reviewed by the CODM, and the reconciliation of segment net earnings (loss) to consolidated net earnings (loss) for the years indicated:
Income StatementYear Ended December 31,
Commercial Banking Segment202520242023
 (In thousands)
Total interest income$1,676,653 $1,812,705 $1,971,000 
Total interest expense699,267 886,655 1,223,872 
Net interest income977,386 926,050 747,128 
Provision for credit losses70,600 42,801 52,000 
Net interest income after provision for credit losses906,786 883,249 695,128 
Noninterest income (loss)142,139 77,145 (448,285)
Noninterest expense:
Compensation349,506 341,396 332,353 
Insurance and assessments32,750 70,779 135,666 
Customer related expense105,425 129,471 124,104 
Occupancy60,624 67,993 61,668 
Information technology and data processing55,458 60,418 51,805 
Leased equipment depreciation26,393 29,271 34,243 
Other professional services23,087 20,857 24,623 
Loan expense16,372 17,306 20,458 
Intangible asset amortization28,267 33,143 11,419 
Acquisition, integration and reorganization costs— (14,183)142,633 
Goodwill impairment— — 1,376,736 
Other expense (1)
37,968 35,289 142,473 
Total noninterest expense735,850 791,740 2,458,181 
Earnings (loss) before income taxes313,075 168,654 (2,211,338)
Income tax expense (benefit)84,102 41,766 (312,201)
Segment net earnings (loss) (2)
$228,973 $126,888 $(1,899,137)

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Mar 3, 2025
2016Mar 1, 2017
2015Feb 18, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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