Company: BANC-PF
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001628280-25-050892
Chunk: 109

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 109
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audited)

NOTE 5.  GOODWILL AND OTHER INTANGIBLE ASSETS, NET

Goodwill and other intangible assets arise from the acquisition method of accounting for business combinations. Goodwill and other intangible assets generated from business combinations and deemed to have indefinite lives are not subject to amortization and instead are tested for impairment annually at the reporting unit level unless a triggering event occurs thereby requiring an updated assessment. Our regular annual impairment assessment occurs in the fourth quarter. Goodwill represents the excess of the purchase price over the fair value of the net assets and other identifiable intangible assets acquired. Impairment exists when the carrying value of the goodwill exceeds the fair value of the reporting unit. An impairment loss would be recognized in an amount equal to that excess as a charge to "Noninterest expense" in the condensed consolidated statements of earnings.The following table presents the carrying amount of goodwill as of the dates indicated: Goodwill (In thousands)Balance, December 31, 2024$214,521 Balance, September 30, 2025$214,521 Our other intangible assets with definite lives are CDI and CRI. CDI and CRI are amortized on an accelerated basis over their respective estimated useful lives and reviewed for impairment at least quarterly. The amortization expense represents the estimated decline in the value of the underlying deposits or customer relationships acquired. The following table presents the carrying amounts of CDI and CRI and the related accumulated amortization for the periods indicated: Three Months EndedNine Months EndedSeptember 30,September 30, 2025202420252024 (In thousands)Gross carrying amount of CDI and CRI,beginning of period$178,764 $236,264 $178,764 $236,264 Accumulated Amortization:Balance, beginning of period(59,834)(87,370)(45,820)(70,787)Amortization expense(7,007)(8,332)(21,021)(24,915)Balance, end of period(66,841)(95,702)(66,841)(95,702)Net CDI and CRI, end of period$111,923 $140,562 $111,923 $140,562  The following table presents the estimated aggregate future amortization expense for our current CDI and CRI as of the date indicated: September 30, 2025(In thousands)Period ending December 31, 2025