Company: BANC-PF
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001169770-25-000029
Chunk: 25

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 2
Chunk 25
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 a one-time non-cash income tax expense of $9.8 million due primarily to the revaluation of deferred tax assets ("DTA") 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. We expect our tax rate going forward to be positively impacted by this state tax rule change.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

Income tax expense of $39.0 million was recorded for the six-month period ended June 30, 2025 resulting in an effective tax rate of 32.2% compared to income tax expense of $25.9 million and an effective tax rate of 29.7% for the comparable period in 2024. The higher 2025 year-to-date effective tax rate was due primarily to the one-time non-cash tax expense related to the DTA revaluation recorded in the second quarter of 2025.

Balance Sheet Analysis

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

June 30,December 31,IncreaseBalance Sheet Highlights20252024(Decrease)(In thousands)Cash and cash equivalents$2,353,552 $2,502,212 $(148,660)Securities available-for-sale2,246,174 2,246,839 (665)Securities held-to-maturity2,316,725 2,306,149 10,576 Loans held for sale465,571 26,331 439,240 Loans and leases held for investment24,245,893 23,781,663 464,230 Total loans and leases24,711,464 23,807,994 903,470 Total assets34,250,453 33,542,864 707,589 Noninterest-bearing deposits$7,441,116 $7,719,913 $(278,797)Total deposits27,528,433 27,191,909 336,524 Borrowings1,917,180 1,391,814 525,366 Subordinated debt949,213 941,923 7,290 Total liabilities30,823,610 30,042,915 780,695 Total stockholders' equity3,426,843 3,499,949