Company: BANC-PF
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001169770-25-000024
Chunk: 21

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 2
Chunk 21
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2,930 4,489 4,491 Other10,749 6,804 8,026 Total operating expense183,653 182,393 210,518 Acquisition, integration and reorganization costs— (1,023)— Total noninterest expense$183,653 $181,370 $210,518 

First Quarter of 2025 Compared to Fourth Quarter of 2024 

Noninterest expense increased by $2.3 million to $183.7 million for the first quarter of 2025 from $181.4 million for the fourth quarter of 2024 due mainly to increases of $8.8 million in compensation expenses and $3.9 million in other expenses, offset partially by decreases of $3.9 million in customer related expense, $3.9 million in insurance and assessments expenses, and $1.6 million in loan expense. The increase in compensation was primarily due to seasonality as resets of accruals for incentive compensation, payroll taxes, and benefits occur during the first quarter of the year. The increase in other expenses was primarily due to higher donations including a $1.0 million donation to the Banc of California Wildfire Relief and Recovery Fund. The decrease in customer related expense was driven by lower ECR expenses related to the HOA Business which were impacted by the lower federal funds rate. The decrease in insurance and assessments expense was mainly due to a lower FDIC assessment and FDIC expense true-ups. The decrease in loan expenses was mostly attributable to lower legal fees driven by higher recoveries in the first quarter.

First Quarter of 2025 Compared to First Quarter of 2024

Noninterest expense decreased by $26.9 million to $183.7 million for the three months ended March 31, 2025 compared to $210.5 million for the three months ended March 31, 2024 due mainly to decreases of $13.2 million in insurance and assessments, $5.8 million in compensation, $3.2 million in customer related expense, $3.0 million in occupancy, and $1.6 million in loan expenses. The decrease in insurance and assessments was primarily due to incremental FDIC special assessments recorded in the first quarter of 2024, resulting from higher assessment rates. Compensation expense decreased mainly due to lower headcount. Customer related expense decreased due to lower ECR expenses which were impacted by the lower federal funds rate. Occupancy expenses were also lower reflecting cost savings from branch