Company: BANC-PF
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001628280-25-009438
Chunk: 181

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 8
Chunk 181
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 income taxes receivable of $18.0 million and $34.5 million at December 31, 2024 and December 31, 2023. As of December 31, 2024 and 2023, the Company had a valuation allowance of $19.0 million and $21.1 million against DTAs. Periodic reviews of the carrying amount of DTAs are made to determine if a valuation allowance is necessary. A valuation allowance is required, based on available evidence, when it is more likely than not that all or a portion of a DTA will not be realized due to the inability to generate sufficient taxable income in the period and/or of the character necessary to utilize the benefit of the DTA. All available evidence, both positive and negative, that may affect the realizability of the DTA is identified and considered in determining the appropriate amount of the valuation allowance. It is more likely than not that these DTAs subject to a valuation allowance will not be realized primarily due to their character and/or the expiration of the carryforward periods.The net decrease of $2.1 million in the total valuation allowance during the year ended December 31, 2024 was primarily related to the expiration and the expected realization of state net operating losses DTA that were previously reserved.   The following table summarizes the activity related to the Company's unrecognized tax benefits for the years indicated:Year Ended December 31, Unrecognized Tax Benefits20242023(In thousands)Balance, beginning of year$1,598 $407 Increase based on tax positions related to prior years— 1,598 Reductions for tax positions related to prior years(953)(407)Balance, end of year$645 $1,598 Unrecognized tax benefits that would affect the effective tax rate if recognized$645 $1,598 Our gross unrecognized tax benefits are not expected to decrease within the next 12 months. We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. For the year ended December 31, 2024, we reduced our accrual for interest expense and penalties by $0.4 million and recognized tax expense of $0.1 million. For the year ended December 31, 2023, we increased our accrual for interest expense and penalties and recognized tax expense of $0.3 million. For the year ended December 31, 2022, we reduced our accrual for interest expense and penalties and recognized tax benefits of $0.7 million