Company: BANC-PF
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001169770-25-000029
Chunk: 146

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 146
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, and/or complex judgments about matters that are inherently uncertain and because of the likelihood that materially different amounts would be reported under different conditions or using different assumptions. These policies and estimates relate to the ACL on loans and leases held for investment, business combinations, the carrying value of goodwill and other intangible assets, and the realization of deferred income tax assets and liabilities. 

Our critical accounting policies and estimates are described in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Form 10-K. 

76

Non-GAAP Financial Measures 

We use certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP. The methodology for determining these non-GAAP measures may differ among companies and may not be comparable. We used the following non-GAAP measures in this Quarterly Report on Form 10-Q:  

•Return on average tangible common equity, tangible common equity, tangible book value per common share, efficiency ratio, adjusted net earnings, and adjusted diluted earnings per share: Given that the use of these measures is prevalent among banking regulators, investors, and analysts, we disclose them in addition to the related GAAP measures of return on average equity, book value per common share, and noninterest expense to total revenue, respectively. The reconciliations of these non-GAAP measures to the GAAP measures are presented in the following tables for and as of the periods presented.

Three Months EndedSix Months EndedReturn on Average Tangible June 30,March 31,June 30,Common Equity ("ROATCE")2025202520252024(Dollars in thousands)Net earnings  $28,385 $53,568 $81,953 $61,185 Earnings before income taxes$73,061 $87,037 Add:Intangible asset amortization7,160 16,888 Adjusted earnings before income taxes for ROATCE80,221 103,925 Adjusted income tax expense (1)20,296 29,743 Adjustments:Intangible asset amortization7,159 14,319 Tax impact of adjustment above (1)(1,655)(3,311)Adjustment to net earnings5,504 11,008 Adjusted net earnings for ROATCE33,889 59,925 92,961 74,182 Less:Preferred stock