Company: BANC-PF
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001628280-25-050892
Chunk: 166

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 166
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The higher effective tax rate in the second quarter of 2025 included a one-time non-cash income tax expense of $9.8 million due primarily to the revaluation of deferred tax assets related to the California state tax changes passed as part of the 2025 California budget enacted on June 30, 2025 and effective retroactively to January 1, 2025.

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

Income tax expense of $61.7 million was recorded for the nine-month period ended September 30, 2025 resulting in an effective tax rate of 28.9% compared to income tax expense of $28.6 million and an effective tax rate of 29.0% for the comparable period in 2024. 

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted in the U.S. The OBBBA includes significant tax reform provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act and the restoration of immediate deductions of certain capital asset additions. While our initial evaluation indicates these tax law changes will not materially impact the Company’s future effective tax rate, we will continue to monitor any additional changes and relevant guidance, and to assess any potential impact to our financial statements.

Balance Sheet Analysis

The following table provides a summary of our balance sheet highlights as of the dates indicated:

September 30,December 31,IncreaseBalance Sheet Highlights20252024(Decrease)(In thousands)Cash and cash equivalents$2,398,265 $2,502,212 $(103,947)Securities available-for-sale2,426,734 2,246,839 179,895 Securities held-to-maturity2,303,657 2,306,149 (2,492)Loans held for sale211,454 26,331 185,123 Loans and leases held for investment24,110,642 23,781,663 328,979 Total loans and leases24,322,096 23,807,994 514,102 Total assets34,012,965 33,542,864 470,101 Noninterest-bearing deposits7,603,748 7,719,913 (116,165)Total deposits27,184,765 27,191,909 (7,144)B