Income Taxes

9 Months Ended

Sep. 30, 2025

Income Taxes

Income Taxes

Note 17—Income Taxes

The Company’s effective income tax rates were 23.2% and 26.1% for the quarters ended September 30, 2025 and 2024, respectively, and 5.5% and 23.8% for the nine months ended September 30, 2025 and 2024, respectively. The decreases in the effective income tax rates for the quarter and nine months ended September 30, 2025 compared to the same periods in 2024 are primarily due to the enactment of California Senate Bill 132, signed into law June 27, 2025 and effective January 1, 2025. The law requires financial institutions to apportion their California income using a single sales factor instead of a factor equally weighted with property, payroll and sales. The Company's effective income tax rate for the nine months ended September 30, 2025 includes a repricing of deferred tax liabilities resulting from this apportionment rule change.