Company: BANC-PF
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001628280-25-009438
Chunk: 478

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1B
Chunk 478
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 and negative, that may affect the realizability of the DTA is identified and considered in determining the appropriate amount of the valuation allowance. It is more likely than not that these DTAs subject to a valuation allowance will not be realized primarily due to their character and/or the expiration of the carryforward periods.The net decrease of $2.1 million in the total valuation allowance during the year ended December 31, 2024 was primarily related to the expiration and the expected realization of state net operating losses DTA that were previously reserved.   The following table summarizes the activity related to the Company's unrecognized tax benefits for the years indicated:Year Ended December 31, Unrecognized Tax Benefits20242023(In thousands)Balance, beginning of year$1,598 $407 Increase based on tax positions related to prior years— 1,598 Reductions for tax positions related to prior years(953)(407)Balance, end of year$645 $1,598 Unrecognized tax benefits that would affect the effective tax rate if recognized$645 $1,598 Our gross unrecognized tax benefits are not expected to decrease within the next 12 months. We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. For the year ended December 31, 2024, we reduced our accrual for interest expense and penalties by $0.4 million and recognized tax expense of $0.1 million. For the year ended December 31, 2023, we increased our accrual for interest expense and penalties and recognized tax expense of $0.3 million. For the year ended December 31, 2022, we reduced our accrual for interest expense and penalties and recognized tax benefits of $0.7 million. We had $0.2 million and $0.6 million accrued for the payment of interest and penalties as of December 31, 2024 and 2023.  We file federal and state income tax returns with the Internal Revenue Service (“IRS”) and various state and local jurisdictions and generally remain subject to examinations by these tax jurisdictions for tax years 2020 through 2023. We are currently under examination by the IRS and certain state and local jurisdictions for various tax years ranging between 2014 and 2022.

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

NOTE 17.  EARNINGS (LOSS) PER SHARE The following tables present the computation of basic