Company: BANC-PF
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001628280-25-009438
Chunk: 178

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 8
Chunk 178
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 uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Since the fair values have been estimated as of December 31, 2024, the amounts that will actually be realized or paid at settlement or maturity of the instruments could be significantly different.

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BANC OF CALIFORNIA, INC. AND SUBSIDIARIESNotes to Consolidated Financial Statements

NOTE 16.  INCOME TAXES     

The following table presents the components of income tax expense for the years indicated:Year Ended December 31, 202420232022(In thousands)Current Tax Expense:Federal$45,554 $34,219 $63,833 State1,156 3,387 44,734 Total current tax expense46,710 37,606 108,567 Deferred Tax (Benefit) Expense:Federal(6,082)(238,865)35,789 State1,138 (110,942)(401)Total deferred tax (benefit) expense (4,944)(349,807)35,388 Total income tax (benefit) expense$41,766 $(312,201)$143,955 The following table presents a reconciliation of the recorded income tax expense to the amount of taxes computed by applying the applicable federal statutory income tax rates of 21% for 2024, 2023, and 2022 to earnings before income taxes:Year Ended December 31, 202420232022(In thousands)Computed expected income tax (benefit) expense at federal statutory rate$35,417 $(464,381)$119,189 State tax (benefit) expense, net of federal tax benefit12,657 (156,669)36,310 Goodwill impairment— 286,811 — Tax‑exempt interest benefit(15,572)(12,518)(12,293)Increase in cash surrender value of life insurance(1,246)(1,455)(1,246)Low income housing tax credits, net of amortization(12,378)(8,574)(7,158)Nondeductible employee compensation1,683 3,947 6,067 Nondeductible acquisition‑related expense— 5,456 — Nondeductible FDIC premiums9,377 18,973 4,257 Change in unrecognized tax benefits40 443 (2,017)Valuation allowance