Company: BANC-PF
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001628280-25-009438
Chunk: 477

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1B
Chunk 477
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130,522 80,610 Lease liability35,447 45,742 FDIC indemnification asset7,028 9,273 Other3,159 1,582 Gross deferred tax assets940,898 979,501 Valuation allowance(19,015)(21,061)Deferred tax assets, net of valuation allowance921,883 958,440 Deferred Tax Liabilities:Core deposit and customer relationship intangibles27,292 29,885 Deferred loan fees and costs2,193 1,039 Unrealized gain on credit-linked notes1,452 2,212 Premises and equipment, principally due to differences in depreciation5,710 6,682 FHLB stock553 4,717 Tax mark-to-market on loans— 539 Subordinated debt14,789 15,862 Equity investments9,695 9,953 Operating leases110,415 110,522 ROU assets29,197 37,918 Gross deferred tax liabilities201,296 219,329 Total net deferred tax assets $720,587 $739,111 

186

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

Based upon our taxpaying history and estimates of taxable income over the years in which the items giving rise to the DTAs are deductible, management believes it is more likely than not the Company will realize the benefits of these DTAs. The Company's net DTAs decreased at December 31, 2024, compared to December 31, 2023 due primarily to a decrease in unrealized loss on AFS securities. The Company had net income taxes receivable of $18.0 million and $34.5 million at December 31, 2024 and December 31, 2023. As of December 31, 2024 and 2023, the Company had a valuation allowance of $19.0 million and $21.1 million against DTAs. Periodic reviews of the carrying amount of DTAs are made to determine if a valuation allowance is necessary. A valuation allowance is required, based on available evidence, when it is more likely than not that all or a portion of a DTA will not be realized due to the inability to generate sufficient taxable income in the period and/or of the character necessary to utilize the benefit of the DTA. All available evidence, both positive