LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES

Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Risk of credit loss exists up to the face amount of these instruments. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

The contractual amount of financial instruments with off-balance-sheet risk was as follows for the dates indicated:



	June 30, 2019				December 31, 2018
($ in thousands)	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commitments to extend credit⁽¹⁾	$	60	$	247,435	$	2,167	$	288,770
Unused lines of credit	817		904,298		1,514		1,119,158
Letters of credit	1,847		8,402		1,266		8,561


(1)	Included no commitments to extend credit related to discontinued operations at December 31, 2018.

Other Commitments

During the three months ended March 31, 2017, the Bank entered into certain definitive agreements which grant the Bank the exclusive naming rights to the Banc of California Stadium, a soccer stadium of The Los Angeles Football Club (LAFC), as well as the right to be the official bank of LAFC. In exchange for the Bank’s rights as set forth in the agreements, the Bank agreed to pay LAFC $100.0 million over a period of 15 years, beginning in 2017 and ending in 2032. The advertising benefits of such rights are amortized on a straight-line basis and recorded as advertising and promotion expense beginning in 2018. During the

three months ended June 30, 2019 and 2018, advertising and promotion expense related to the LAFC commitment was $1.7 million. During the six months ended June 30, 2019 and 2018, advertising and promotion expense related to the LAFC commitment was $3.3 million. As of June 30, 2019, the Bank has paid $18.0 million of the $100.0 million commitment. The prepaid commitment balance, net of amortization, was $8.0 million as of June 30, 2019, which was recognized as a prepaid asset and included in Other Assets in the Consolidated Statements of Financial Condition. See Note 18 for additional information.

At June 30, 2019, the Company had unfunded commitments of $11.1 million, $7.6 million, and $501 thousand for affordable housing fund investments, Small Business Investment Company (SBIC) investments, and other investments, respectively.