Company: BANC-PF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001169770-25-000024
Chunk: 22

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 2
Chunk 22
---
 consolidations following the merger. Loan expenses decreased largely due to lower loan servicing costs primarily as a result of the Civic loan sale completed in the third quarter of 2024.

77

Income Taxes

First Quarter of 2025 Compared to Fourth Quarter of 2024 

Income tax expense of $19.5 million was recorded for the first quarter of 2025 resulting in an effective tax rate of 26.7% compared to income tax expense of $13.2 million for the fourth quarter of 2024 and an effective tax rate of 18.8%. The lower fourth quarter effective tax rate was due primarily to tax benefits resulting from recording deferred tax assets at higher state tax rates.

First Quarter of 2025 Compared to First Quarter of 2024

Income tax expense of $19.5 million was recorded for the first quarter of 2025 resulting in an effective tax rate of 26.7% compared to income tax expense of $11.5 million for the first quarter of 2024 and an effective tax rate of 27.2%. The lower effective tax rate in the first quarter of 2025 was primarily attributable to lower disallowed FDIC insurance premium deduction. 

Balance Sheet Analysis

The following table provides a summary of our balance sheet highlights as of the dates indicated:

March 31,December 31,IncreaseBalance Sheet Highlights20252024(Decrease)(In thousands)Cash and cash equivalents$2,343,889 $2,502,212 $(158,323)Securities available-for-sale2,334,058 2,246,839 87,219 Securities held-to-maturity2,311,912 2,306,149 5,763 Loans held for sale25,797 26,331 (534)Loans and leases held for investment24,126,527 23,781,663 344,864 Total assets33,779,918 33,542,864 237,054 Noninterest-bearing deposits$7,593,950 $7,719,913 $(125,963)Total deposits27,193,191 27,191,909 1,282 Borrowings1,670,782 1,391,814 278,968 Subordinated debt944,908 941,923 2,985 Total liabilities30,258,262 30,042,915 215,347 Total stockholders' equity3,521,