Company: BANC-PF
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001628280-25-009438
Chunk: 149

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 8
Chunk 149
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(58,168)Provision113,500 (61,500)52,000 Balance, end of year $281,687 $29,571 $311,258 

161

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

NOTE 6.  PREMISES AND EQUIPMENT, NETThe following table presents the components of premises and equipment as of the dates indicated:December 31, 20242023(In thousands)Land$8,874 $8,874 Buildings95,410 92,891 Furniture, fixtures and equipment52,274 59,923 Leasehold improvements78,326 79,857 Premises and equipment, gross234,884 241,545 Less: accumulated depreciation and amortization(92,338)(94,747)Premises and equipment, net$142,546 $146,798 Depreciation and amortization expense was $15.2 million, $12.6 million, and $12.4 million for the years ended December 31, 2024, 2023, and 2022.

NOTE 7.  GOODWILL AND OTHER INTANGIBLE ASSETS, NETThe unprecedented decline in economic conditions in the banking industry triggered by the failure of two large regional banks caused a significant decline in stock market valuations in March 2023, including our stock price. These triggering events indicated that goodwill related to our single reporting unit may be impaired and resulted in us performing a goodwill impairment assessment in the first quarter of 2023. We applied the market approach using an average share price of the Company's stock and a control premium to determine the fair value of the reporting unit. The control premium was based upon management's judgment using historical information of control premiums for completed bank acquisitions. As a result, we recorded a goodwill impairment of $1.4 billion in the first quarter of 2023 as the estimated fair value of equity was less than book value. This was a non-cash charge to earnings and had no impact on our regulatory capital ratios, cash flows or liquidity position.  During the year ended December 31, 2024, the Company recorded adjustments related to the Merger resulting in an increase to goodwill of $15.9 million, within the one-year measurement period subsequent to the acquisition date of November 30, 2023. These adjustments largely related to the estimated fair value