Banc of California NA expects to record a $13.7 million specific loan loss provision in its first-quarter results.
It had extended a $15 million line of credit to a borrower now believed to have made false representations. The Santa Ana, Calif.-based bank's investigation is ongoing, and law enforcement authorities have been notified.
Parent company Banc of California Inc. estimates an after-tax impact of $9.7 million, or 19 cents per share. The related charge-off's effect on regulatory capital ratios is expected to be "immaterial."
