Company: BANC-PF
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001628280-25-050892
Chunk: 165

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 165
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,994 9,403 25,680 59,600 Intangible asset amortization7,160 7,159 21,479 25,373 Leased equipment depreciation6,750 6,700 20,191 22,175 Other professional services5,394 6,406 16,313 15,359 Loan expense4,947 4,050 11,927 12,817 Other8,397 8,666 27,812 28,485 Total operating expense185,684 185,869 555,206 623,530 Acquisition, integration and reorganization costs— — — (13,160)Total noninterest expense$185,684 $185,869 $555,206 $610,370 

Third Quarter of 2025 Compared to Second Quarter of 2025 

Noninterest expense remained relatively flat at $185.7 million for the third quarter compared to $185.9 million for the second quarter.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Noninterest expense decreased by $55.2 million to $555.2 million for the nine-month period ended September 30, 2025 due mainly to decreases of $33.9 million in insurance and assessments, $17.2 million in customer related expenses, $6.4 million in occupancy, and $10.7 million in all of the other expense categories, offset partially by an increase of $13.2 million in acquisition, integration and reorganization costs. Insurance and assessment decreased primarily due to incremental FDIC special assessments recorded in 2024, which reflected higher assessment rates. Customer related expense decreased due to lower earnings credit rate expenses, driven by the lower federal funds rate. Occupancy expenses decreased as a result of cost savings from branch consolidations following the PacWest Bancorp merger. Acquisition, integration and reorganization costs of $13.2 million in 2024 reflected adjustments to the merger-related accruals, as actual expenses were lower than previously estimated. 

91

Income Taxes

Third Quarter of 2025 Compared to Second Quarter of 2025 

Income tax expense of $22.7 million was recorded for the third quarter resulting in an effective tax rate of 24.6% compared to income tax expense of $19.5 million and an effective tax rate of 40.7% for the second quarter.