Company: BANC-PF
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001628280-25-009438
Chunk: 324

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1B
Chunk 324
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376,736)1,376,736 1,347,736 29,000 Total noninterest expense$791,740 $(1,666,441)$2,458,181 $1,684,660 $773,521 

2024 Compared to 2023 

Noninterest expense decreased by $1.7 billion to $791.7 million for the year ended December 31, 2024 compared to $2.5 billion for the year ended December 31, 2023. The decrease was due mainly to (i) goodwill impairment of $1.4 billion recorded in 2023, (ii) lower acquisition, integration and reorganization costs of $156.8 million related to the Merger, (iii) lower other expenses of $107.2 million due to a $106.8 million of unfunded commitments fair value loss adjustments related to loan sales recorded in 2023, and (iv) lower regulatory assessments of $64.9 million for both the regular FDIC assessment and the special assessment offset partially by higher intangible asset amortization of $21.7 million.

Income Taxes

The effective tax rates were 24.8% and 14.1% for the years ended December 31, 2024 and 2023. The lower effective tax rate in 2023 was due mainly to the effect of the non-deductible goodwill impairment. Excluding non-deductible goodwill impairment, the effective income tax rate was 26.2% for the year ended December 31, 2023. The Company's 2024 blended statutory tax rate for federal and state was 28.5%. For further information on income taxes, see Note 16. Income Taxes of the Notes to Consolidated Financial Statements contained in “Item 8. Financial Statements and Supplementary Data.”

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Balance Sheet Analysis

Securities Available-for-Sale 

The following table presents the composition and durations of our AFS securities as of the dates indicated:

December 31,  202420232022Fair% of DurationFair% of DurationFair% of DurationSecurity TypeValueTotal(in years)ValueTotal(in years)ValueTotal(in years) (Dollars in thousands)Agency residential MBS$861,840 38 %7.6 $1,187,609 51 %8.2 $2,242,042 46 %7.6 Agency residential CMOs446,631 20