Oakland, CA – April 26, 2023 – California BanCorp (NASDAQ: CALB), whose subsidiary is California Bank of Commerce, announced today its financial results for the first quarter ended March 31, 2023.

The Company reported net income of $5.5 million for the first quarter of 2023, representing a decrease of $2.2 million, or 29%, compared to $7.7 million for the fourth quarter of 2022 and an increase of $1.8 million, or 48%, compared to $3.7 million in the first quarter of 2022.

Diluted earnings per share of $0.64 for the first quarter of 2023 compared to $0.91 for the fourth quarter of 2022 and $0.44 for the first quarter of 2022.

“Despite the more challenging operating environment that we saw during the first quarter, we continued to generate strong financial performance with our return on average assets remaining above 1%,” said Steven Shelton, Chief Executive Officer of California BanCorp. “While being more conservative in our approach to new loan production, we continued to generate high quality lending opportunities that resulted in our total loans increasing at a 6% annualized rate in the first quarter, with most of the growth coming in our commercial portfolio. During the first two months of the quarter, we saw the usual seasonal outflows of deposits largely related to tax payments and profit distributions among our clients, followed by an increase in deposits during March as existing clients rebuilt their account balances and we continued to add new deposit relationships. Due to the strong relationships we have with our clients based on the level of service and expertise that we provide, as well as the high level of operating accounts that we maintain, we have built a sticky deposit base that has demonstrated excellent stability during the turmoil that has impacted the banking industry over the past two months.”

“While our deposit base was stable in March, we increased our liquidity through short-term borrowings and brokered deposits, which had an impact on our level of profitability in the first quarter, but we believed was prudent from a risk management perspective. The short-term nature of the borrowings and brokered deposits provides us with the flexibility to make adjustments in our funding mix as market conditions change, which should positively impact our net interest margin. Our primary goal this year is to continue to develop deposit relationships with high quality commercial clients that maintain their operating accounts with the bank. We believe the current challenges in the broader banking industry have made the environment more favorable for attracting new clients given our strong balance sheet and the compelling value proposition that we can offer. We believe our success in adding new clients will contribute to the continued long-term profitable growth of the company and further increase the value of our franchise,” said Mr. Shelton.

 

Financial Highlights:

Profitability – three months ended March 31, 2023 compared to December 31, 2022

• Net income of $5.5 million and $0.64 per diluted share, compared to $7.7 million and $0.91 per share, respectively.
• Revenue of $19.9 million decreased $3.9 million, or 17%, from $23.8 million for the fourth quarter of 2022.
• Net interest income of $18.8 million decreased $3.1 million, or 14%, compared to $21.9 million for the fourth quarter of 2022.
• Provision for loan losses of $358,000 decreased $742,000, or 67%, from $1.1 million for the fourth quarter of 2022.
• Non-interest income of $1.1 million decreased $855,000, or 44%, compared to 2.0 million for the fourth quarter of 2022.
• Non-interest expense, excluding capitalized loan origination costs, of $12.5 million decreased$179,000, or 1%, compared to $12.7 million for the fourth quarter of 2022.

Financial Position – March 31, 2023 compared to December 31, 2022

• Total assets increased by $6.8 million to $2.05 billion; average total assets decreased by $113.9 millionto $1.97 billion.
• Gross loans increased by $23.8 million to $1.62 billion; average gross loans decreased by $39.0 millionto $1.58 billion.
• Deposits decreased by $74.1 million to $1.72 billion; average deposits decreased by $85.8 million to$1.70 billion. Insured and collateralized deposits represented 53% of the total deposit portfolio at March 31, 2023.
• Other borrowings were $75.0 million at March 31, 2023 compared to no balances outstanding atDecember 31, 2022.
• Tangible book value per share of $20.48 increased by $0.70, or 4%.

Net Interest Income and Margin:

Net interest income for the quarter ended March 31, 2023 was $18.8 million, representing a decrease of $3.1 million, or 14%, from $21.9 million for the three months ended December 31, 2022, and an increase of $4.2 million, or 29%, from $14.5 million for the quarter ended March 31, 2022. The decrease in net interest income compared to the fourth quarter of 2022 was primarily attributable to lower balances of average earning assets and a decrease in net interest margin. Additionally, during the fourth quarter of 2022, commercial loans totaling $57.9 million that were previously purchased at a discount were paid off, resulting in the remaining unamortized discount of $1.4 million being accelerated into interest income. Compared to the first quarter of 2022, the increase in net interest income resulted from a more favorable mix of earning assets and the rising rate environment, which positively impacted net interest margin.

The Company’s net interest margin for the first quarter of 2023 was 4.02%, compared to 4.32% for the fourth quarter of 2022 and 3.19% for the same period in 2022. The decrease in margin compared to the prior quarter was primarily due to lower average earning assets, an increase in the cost of deposits and other borrowings, and the accelerated loan fees recognized in the fourth quarter of 2022. The increase in margin compared to the first quarter of 2022 was primarily due to growth in the loan portfolio and increased yields on earning assets, partially offset by an increase in the cost of deposits and other borrowings.

Non-Interest Income:

The Company’s non-interest income for the quarters ended March 31, 2023, December 31, 2022, and March 31, 2022 was $1.1 million, $2.0 million, and $2.5 million, respectively. The decrease in non-interest income from the fourth quarter of 2022 was primarily due to a decrease in loan related fees. The decrease in non-interest income from the same period in the prior year was attributable to a gain of $1.4 million recognized on the sale of a portion of our solar loan portfolio during the first quarter of 2022.

Net interest income and non-interest income comprised total revenue of $19.9 million, $23.8 million, and $17.1 million for the quarters ended March 31, 2023, December 31, 2022, and March 31, 2022, respectively.

Non-Interest Expense:

The Company’s non-interest expense for the quarters ended March 31, 2023, December 31, 2022, and March 31, 2022 was $11.8 million, $11.7 million, and $10.9 million, respectively. The increase in non-interest expense from the prior periods was primarily due to an increase in salaries and benefits related to investments to support the continued growth of the business, combined with a decrease in capitalized loan origination costs and an increase in loan administration expenses. Excluding capitalized loan origination costs, non-interest expense for the first quarter of 2023, the fourth quarter of 2022 and the first quarter of 2022 was $12.5 million, $12.7 million, and $11.9 million, respectively.

The Company’s efficiency ratio, the ratio of non-interest expense to revenues, was 59.62%, 49.17%, and 63.99% for the quarters ended March 31, 2023, December 31, 2022, and March 31, 2022, respectively.

 

Balance Sheet:

Total assets of $2.05 billion as of March 31, 2023 represented an increase of $6.9 million compared to $2.04 billion at December 31, 2022, and increased $189.5 million compared to total assets of $1.86 billion at March 31, 2022. The increase in total assets from the prior quarter was primarily due to growth of the loan portfolio, partially offset by decreased liquidity related to the seasonal outflow of deposits that occurs at the beginning of the year for many of our business clients. Compared to the same period in the prior year, total assets increased primarily due to strong loan growth in the commercial and real estate other portfolios.

Total gross loans were $1.62 billion at March 31, 2023, compared to $1.59 billion at December 31, 2022 and $1.40 billion at March 31, 2022. During the first quarter of 2023, commercial and real estate other loans increased by $27.2 million, or 2%, due to organic growth, partially offset by decreases in SBA, and other loans related to the ordinary course of business. Compared to the same period in the prior year, commercial, real estate other, and real estate construction and land loans increased by $133.7 million, or 26%, $111.8 million, or 15%, and $12.7 million, or 25%, respectively, due to organic growth. These increases were partially offset by a decrease in SBA loans of $38.4 million, or 87%, primarily due to PPP loan forgiveness, and a decrease in other loans of $3.0 million, or 7%, due to normal loan activity.

Total deposits decreased by $74.1 million, or 4%, to $1.72 billion at March 31, 2023, from $1.79 billion at December 31, 2022, and increased by $117.1 million, or 7%, from $1.60 billion at March 31, 2022. The decrease in total deposits from the end of the fourth quarter of 2022 was primarily due to the seasonal outflow of deposits that occurs at the beginning of the year and was comprised of decreases in non-interest bearing demand deposits of $71.0 million, interest bearing demand deposits of $7.0 million, and money market and savings deposits of $54.2 million. These decreases were partially offset by an increase in time deposits of $58.1 million as a result of higher balances of short-term brokered certificates of deposits which were added to temporarily increase liquidity. Compared to the same period last year, the increase in total deposits was primarily concentrated in time deposits, partially offset by a reduction in demand deposits and money market and savings deposits as a result of outflows related to forgiveness of PPP loans. Non-interest bearing deposits, primarily commercial business operating accounts, represented 43.1% of total deposits at March 31, 2023, compared to 45.3% at December 31, 2022 and 46.7% at March 31, 2022.

As of March 31, 2023, the Company had outstanding borrowings of $75.0 million, excluding junior subordinated debt securities, compared to no outstanding borrowings at December 31, 2022 and $32.2 million of outstanding borrowings at March 31, 2022.

Asset Quality:

The provision for credit losses decreased to $358,000 for the first quarter of 2023, compared to $1.1 million for the fourth quarter of 2022 and $950,000 for the first quarter of 2022. The Company had net loan charge-offs of $247,000, or 0.02% of gross loans, during the first quarter of 2023 and $650,000, or 0.04% of gross loans, during the fourth quarter of 2022. The Company had net loan recoveries of $1,000, or 0.00% of gross loans, during the first quarter of 2022.

Non-performing assets (“NPAs”) to total assets were 0.01% at March 31, 2023, compared to 0.06% at December 31, 2022 and 0.03% at March 31, 2022, with non-performing loans of $222,000, $1.3 million and $549,000, respectively, on those dates.

The allowance for credit losses was $17.1 million, or 1.06% of total loans, at March 31, 2023, compared to the allowance for loan losses of $17.0 million, or 1.07% of total loans, at December 31, 2022 and $15.0 million, or 1.07% of total loans, at March 31, 2022. On January 1, 2023, the Company adopted the new current expected credit losses (CECL) standard. The Company’s allowance for credit losses to total loans upon adoption on January 1, 2023 was 1.07% and remained consistent with the coverage as of December 31, 2022.

Capital Adequacy:

At March 31, 2023, shareholders’ equity totaled $178.6 million, compared to $172.3 million at December 31, 2022 and $154.6 million one year ago. Additionally, at March 31, 2023, the Company’s total risk-based capital ratio, tier one capital ratio, and leverage ratio were 12.08%, 8.54%, and 8.76%, respectively; all of which were above the regulatory standards of 10.00%, 8.00%, and 5.00%, respectively, for “well-capitalized” institutions.

“Our strong financial performance and prudent balance sheet management resulted in an increase in all of our capital ratios and a 4% increase in our tangible book value per share during the first quarter,” said Thomas A. Sa, President, Chief Financial Officer and Chief Operating Officer of California BanCorp. “We have high levels of capital and liquidity, a stable deposit base, a low level of unrealized losses in our investment portfolio, and exceptional asset quality with minimal exposure to areas of concern such as office commercial real estate loans in major metropolitan areas. As such, we believe we are very well positioned to effectively manage through the current challenging environment and continue growing our client base given the fundamental strength of our franchise.”

 

About California BanCorp:
California BanCorp, the parent company for California Bank of Commerce, offers a broad range of commercial banking services to closely held businesses and professionals located throughout Northern California. The Company’s common stock trades on the Nasdaq Global Select marketplace under the symbol CALB. For more information on California BanCorp, call us at (510) 457-3751, or visit us at www.californiabankofcommerce.com.

Contacts:
Steven E. Shelton, (510) 457-3751
Chief Executive Officer
seshelton@bankcbc.com

Thomas A. Sa, (510) 457-3775
President, Chief Financial Officer and Chief Operating Officer
tsa@bankcbc.com

Use of Non-GAAP Financial Information:
This press release contains both financial measures based on GAAP and non-GAAP. Non-GAAP financial measures are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Forward-Looking Information:

Statements in this news release regarding expectations and beliefs about future financial performance and financial condition, as well as trends in the Company’s business and markets are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that the Company makes about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond the Company’s control. As a result of those risks and uncertainties, the Company’s actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause the Company to make changes to future plans. Those risks and uncertainties include, but are not limited to, the risk of incurring loan losses, which is an inherent risk of the banking business; the risk that the Company will not be able to continue its internal growth rate; uncertainties related to the coronavirus pandemic; the impact of higher inflation rates; the risk that the United States economy will experience slowed growth or recession or will be adversely affected by domestic or international economic conditions and risks associated with the Federal Reserve Board taking actions with respect to interest rates, any of which could adversely affect, among other things, the values of real estate collateral supporting many of the Company’s loans, loan demand, interest income and interest rate margins and, therefore, the Company’s future operating results; risks associated with changes in income tax laws and regulations; and risks associated with seeking new client relationships and maintaining existing client relationships. Readers of this news release are encouraged to review the additional information regarding these and other risks and uncertainties to which our business is subject that are contained in our Annual Report on Form 10-K for the year ended December 31, 2022 which is on file with the Securities and Exchange Commission (the “SEC”). Additional information will be set forth in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, which we expect to file with the SEC during the second quarter of 2023, and readers of this release are urged to review the additional information that will be contained in that report.

Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today’s date, or to make predictions based solely on historical financial performance. The Company disclaims any obligation to update forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise, except as may be required by law.

 

 

 

FINANCIAL TABLES FOLLOW

CALIFORNIA BANCORP AND SUBSIDIARY
SELECTED FINANCIAL INFORMATION (UNAUDITED) – PROFITABILITY
(Dollars in Thousands, Except Per Share Data)
                               
            Change         Change
QUARTERLY HIGHLIGHTS:   Q1 2023   Q4 2022   $   %     Q1 2022   $   %
                               
Interest income   $ 25,539     $ 27,480     $ (1,941 )   -7 %     $ 15,924     $ 9,615     60 %
Interest expense     6,782       5,620       1,162     21 %       1,398       5,384     385 %
    Net interest income     18,757       21,860       (3,103 )   -14 %       14,526       4,231     29 %
                               
Provision for credit losses     358       1,100       (742 )   -67 %       950       (592 )   -62 %
    Net interest income after                              
      provision for credit losses     18,399       20,760       (2,361 )   -11 %       13,576       4,823     36 %
                               
Non-interest income     1,107       1,962       (855 )   -44 %       2,534       (1,427 )   -56 %
Non-interest expense     11,843       11,713       130     1 %       10,916       927     8 %
    Income before income taxes     7,663       11,009       (3,346 )   -30 %       5,194       2,469     48 %
                               
Income tax expense     2,212       3,340       (1,128 )   -34 %       1,521       691     45 %
    Net income   $ 5,451     $ 7,669     $ (2,218 )   -29 %     $ 3,673     $ 1,778     48 %
                               
Diluted earnings per share   $ 0.64     $ 0.91     $ (0.27 )   -30 %     $ 0.44     $ 0.20     45 %
                               
Net interest margin     4.02 %     4.32 %   -30 Basis Points       3.19 %   +83 Basis Points
                               
Efficiency ratio     59.62 %     49.17 %   +1045 Basis Points       63.99 %   -437 Basis Points
CALIFORNIA BANCORP AND SUBSIDIARY
SELECTED FINANCIAL INFORMATION (UNAUDITED) – FINANCIAL POSITION
(Dollars in Thousands, Except Per Share Data)
                               
            Change         Change
PERIOD-END HIGHLIGHTS:   Q1 2023   Q4 2022   $   %     Q1 2022   $   %
                               
Total assets   $ 2,049,053     $ 2,042,215     $ 6,838     0 %     $ 1,859,595     $ 189,458   10 %
Gross loans     1,617,263       1,593,421       23,842     1 %       1,400,474       216,789   15 %
Deposits     1,717,610       1,791,740       (74,130 )   -4 %       1,600,522       117,088   7 %
Tangible equity     171,099       164,782       6,317     4 %       147,068       24,031   16 %
                               
Tangible book value per share   $ 20.48     $ 19.78     $ 0.70     4 %     $ 17.78     $ 2.70   15 %
                               
Tangible equity / total assets     8.35 %     8.07 %   +28 Basis Points       7.91 %   +44 Basis Points
Gross loans / total deposits     94.16 %     88.93 %   +523 Basis Points       87.50 %   +666 Basis Points
Noninterest-bearing deposits /                      
    total deposits     43.12 %     45.30 %   -218 Basis Points       46.65 %   -353 Basis Points
                               
                               
                               
                               
QUARTERLY AVERAGE           Change         Change
HIGHLIGHTS:   Q1 2023   Q4 2022   $   %     Q1 2022   $   %
                               
Total assets   $ 1,974,266     $ 2,088,206     $ (113,940 )   -5 %     $ 1,928,542     $ 45,724   2 %
Total earning assets     1,893,940       2,007,243       (113,303 )   -6 %       1,846,225       47,715   3 %
Gross loans     1,582,332       1,621,322       (38,990 )   -2 %       1,371,187       211,145   15 %
Deposits     1,699,930       1,785,693       (85,763 )   -5 %       1,652,013       47,917   3 %
Tangible equity     169,454       161,919       7,535     5 %       146,032       23,422   16 %
                               
Tangible equity / total assets     8.58 %     7.75 %   +83 Basis Points       7.57 %   +101 Basis Points
Gross loans / total deposits     93.08 %     90.80 %   +228 Basis Points       83.00 %   +1008 Basis Points
Noninterest-bearing deposits /                      
    total deposits     42.88 %     44.47 %   -159 Basis Points       44.88 %   -200 Basis Points
CALIFORNIA BANCORP AND SUBSIDIARY
SELECTED INTERIM FINANCIAL INFORMATION (UNAUDITED) – ASSET QUALITY
(Dollars in Thousands)
                     
ALLOWANCE FOR CREDIT LOSSES:   03/31/23   12/31/22   09/30/22   06/30/22   03/31/22
                     
                     
Balance, beginning of period   $ 17,005     $ 16,555     $ 15,957     $ 15,032     $ 14,081  
CECL adjustment     (13 )                        
Provision for credit losses, quarterly     358       1,100       800       925       950  
Charge-offs, quarterly     (247 )     (650 )     (202 )            
Recoveries, quarterly                             1  
Balance, end of period   $ 17,103     $ 17,005     $ 16,555     $ 15,957     $ 15,032  
                     
                     
NONPERFORMING ASSETS:   03/31/23   12/31/22   09/30/22   06/30/22   03/31/22
                     
Loans accounted for on a non-accrual basis   $ 222     $ 1,250     $ 182     $ 549     $ 549  
Loans with principal or interest contractually                    
  past due 90 days or more and still accruing                    
  interest                 161              
      Nonperforming loans   $ 222     $ 1,250     $ 343     $ 549     $ 549  
Other real estate owned                              
      Nonperforming assets   $ 222     $ 1,250     $ 343     $ 549     $ 549  
                     
Loans restructured and in compliance with                    
  modified terms                              
      Nonperforming assets and restructured loans   $ 222     $ 1,250     $ 343     $ 549     $ 549  
                     
                     
Nonperforming loans by asset type:                    
      Commercial   $     $ 1,028     $ 161     $     $  
      Real estate other                              
      Real estate construction and land                              
      SBA     222       222       182       549       549  
      Other                              
      Nonperforming loans   $ 222     $ 1,250     $ 343     $ 549     $ 549  
                     
                     
ASSET QUALITY:   03/31/23   12/31/22   09/30/22   06/30/22   03/31/22
                     
Allowance for credit losses / gross loans     1.06 %     1.07 %     1.04 %     1.06 %     1.07 %
Allowance for credit losses / nonperforming loans     7704.05 %     1360.40 %     4826.53 %     2906.56 %     2738.07 %
Nonperforming assets / total assets     0.01 %     0.06 %     0.02 %     0.03 %     0.03 %
Nonperforming loans / gross loans     0.01 %     0.08 %     0.02 %     0.04 %     0.04 %
Net quarterly charge-offs / gross loans     0.02 %     0.04 %     0.01 %     0.00 %     -0.00 %
CALIFORNIA BANCORP AND SUBSIDIARY
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands, Except Per Share Data)
           
      Three months ended
  03/31/23   12/31/22   03/31/22
           
INTEREST INCOME          
Loans $ 22,472     $ 23,972     $ 14,886  
Federal funds sold   1,760       2,236       136  
Investment securities   1,307       1,272       902  
     Total interest income   25,539       27,480       15,924  
           
INTEREST EXPENSE          
Deposits   6,022       4,536       806  
Other   760       1,084       592  
    Total interest expense   6,782       5,620       1,398  
           
Net interest income   18,757       21,860       14,526  
Provision for credit losses   358       1,100       950  
Net interest income after provision          
     for credit losses   18,399       20,760       13,576  
           
NON-INTEREST INCOME          
Service charges and other fees   863       1,653       889  
Gain on sale of loans               1,393  
Other non-interest income   244       309       252  
     Total non-interest income   1,107       1,962       2,534  
           
NON-INTEREST EXPENSE          
Salaries and benefits   7,876       7,443       7,093  
Premises and equipment   1,180       1,249       1,302  
Other   2,787       3,021       2,521  
     Total non-interest expense   11,843       11,713       10,916  
           
Income before income taxes   7,663       11,009       5,194  
Income taxes   2,212       3,340       1,521  
           
NET INCOME $ 5,451     $ 7,669     $ 3,673  
           
EARNINGS PER SHARE          
Basic earnings per share $ 0.65     $ 0.92     $ 0.44  
Diluted earnings per share $ 0.64     $ 0.91     $ 0.44  
Average common shares outstanding   8,339,080       8,330,145       8,276,761  
Average common and equivalent          
  shares outstanding   8,492,067       8,463,738       8,392,802  
           
PERFORMANCE MEASURES          
Return on average assets   1.12 %     1.46 %     0.77 %
Return on average equity   12.50 %     17.96 %     9.70 %
Return on average tangible equity   13.05 %     18.79 %     10.20 %
Efficiency ratio   59.62 %     49.17 %     63.99 %
CALIFORNIA BANCORP AND SUBSIDIARY
INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
                     
    03/31/23   12/31/22   09/30/22   06/30/22   03/31/22
                     
ASSETS                    
Cash and due from banks   $ 15,121     $ 16,686     $ 24,709     $ 20,378     $ 18,228  
Federal funds sold     198,804       215,696       216,345       138,057       206,305  
Investment securities     153,769       155,878       157,531       165,309       171,764  
Loans:                    
  Commercial     656,519       634,535       643,131       589,562       522,808  
  Real estate other     853,431       848,241       824,867       794,504       741,651  
  Real estate construction and land     63,928       63,730       71,523       63,189       51,204  
  SBA     5,610       7,220       8,565       13,310       44,040  
  Other     37,775       39,695       39,815       39,814       40,771  
     Loans, gross     1,617,263       1,593,421       1,587,901       1,500,379       1,400,474  
  Unamortized net deferred loan costs (fees)   1,765       2,040       1,902       2,570       2,434  
  Allowance for credit losses     (17,103 )     (17,005 )     (16,555 )     (15,957 )     (15,032 )
     Loans, net     1,601,925       1,578,456       1,573,248       1,486,992       1,387,876  
Premises and equipment, net     2,848       3,072       3,382       3,736       4,047  
Bank owned life insurance     25,334       25,127       24,955       24,788       24,614  
Goodwill and core deposit intangible     7,462       7,472       7,483       7,493       7,503  
Accrued interest receivable and other assets   43,790       39,828       40,848       38,599       39,258  
     Total assets   $ 2,049,053     $ 2,042,215     $ 2,048,501     $ 1,885,352     $ 1,859,595  
                     
LIABILITIES                    
Deposits:                    
  Demand noninterest-bearing   $ 740,650     $ 811,671     $ 758,716     $ 715,432     $ 746,673  
  Demand interest-bearing     30,798       37,815       35,183       45,511       36,419  
  Money market and savings     616,864       671,016       597,244       626,156       686,781  
  Time     329,298       271,238       317,935       165,040       130,649  
     Total deposits     1,717,610       1,791,740       1,709,078       1,552,139       1,600,522  
                     
Junior subordinated debt securities     54,186       54,152       54,117       54,097       54,063  
Other borrowings     75,000             100,000       100,000       32,166  
Accrued interest payable and other liabilities   23,696       24,069       21,248       20,372       18,273  
     Total liabilities     1,870,492       1,869,961       1,884,443       1,726,608       1,705,024  
                     
SHAREHOLDERS’ EQUITY                    
Common stock     111,609       111,257       110,786       110,289       109,815  
Retained earnings     68,082       62,297       54,628       49,106       44,862  
Accumulated other comprehensive (loss)     (1,130 )     (1,300 )     (1,356 )     (651 )     (106 )
     Total shareholders’ equity     178,561       172,254       164,058       158,744       154,571  
     Total liabilities and shareholders’ equity   $ 2,049,053     $ 2,042,215     $ 2,048,501     $ 1,885,352     $ 1,859,595  
                             
CAPITAL ADEQUACY                    
Tier I leverage ratio     8.76 %     7.98 %     8.21 %     8.27 %     7.84 %
Tier I risk-based capital ratio     8.54 %     8.23 %     7.98 %     8.09 %     8.49 %
Total risk-based capital ratio     12.08 %     11.77 %     11.57 %     11.84 %     12.49 %
Total equity/ total assets     8.71 %     8.43 %     8.01 %     8.42 %     8.31 %
Book value per share   $ 21.37     $ 20.67     $ 19.70     $ 19.09     $ 18.69  
                     
Common shares outstanding     8,355,378       8,332,479       8,327,781       8,317,161       8,270,901  
CALIFORNIA BANCORP AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
                         
    Three months ended March 31,
  Three months ended December 31,
    2023   2022
                         
        Yields   Interest       Yields   Interest
    Average   or   Income/   Average   or   Income/
    Balance   Rates   Expense   Balance   Rates   Expense
ASSETS                        
Interest earning assets:                        
  Loans (1)   $ 1,582,332   5.76 %   $ 22,472   $ 1,621,322   5.87 %   $ 23,972
  Federal funds sold     156,941   4.55 %     1,760     229,209   3.87 %     2,236
  Investment securities     154,667   3.43 %     1,307     156,712   3.22 %     1,272
Total interest earning assets     1,893,940   5.47 %     25,539     2,007,243   5.43 %     27,480
                       
Noninterest-earning assets:                        
  Cash and due from banks     18,098             20,692        
  All other assets (2)     62,228             60,271        
      TOTAL   $ 1,974,266           $ 2,088,206        
                         
LIABILITIES AND                        
  SHAREHOLDERS’ EQUITY                        
Interest-bearing liabilities:                        
  Deposits:                        
     Demand   $ 34,032   0.08 %   $ 7   $ 39,582   0.06 %   $ 6
     Money market and savings     626,666   2.01 %     3,104     647,213   1.45 %     2,359
     Time     310,246   3.81 %     2,911     304,784   2.83 %     2,171
  Other     71,108   4.33 %     760     110,650   3.89 %     1,084
Total interest-bearing liabilities     1,042,052   2.64 %     6,782     1,102,229   2.02 %     5,620
                         
Noninterest-bearing liabilities:                        
   Demand deposits     728,986             794,114        
   Accrued expenses and                        
     other liabilities     26,307             22,467        
Shareholders’ equity     176,921             169,396        
    TOTAL   $ 1,974,266           $ 2,088,206        
                         
Net interest income and margin (3)       4.02 %   $ 18,757       4.32 %   $ 21,860
                         
                         
(1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of net deferred loan (costs) fees of $(226,000) and $1.0 million, respectively.
(2) Other noninterest-earning assets includes the allowance for credit losses of $17.0 million and $16.5 million, respectively.
(3) Net interest margin is net interest income divided by total interest-earning assets.          
CALIFORNIA BANCORP AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
                         
    Three months ended March 31,
    2023   2022
                         
        Yields   Interest       Yields   Interest
    Average   or   Income/   Average   or   Income/
    Balance   Rates   Expense   Balance   Rates   Expense
ASSETS                        
Interest earning assets:                        
  Loans (1)   $ 1,582,332   5.76 %   $ 22,472   $ 1,371,187   4.40 %   $ 14,886
  Federal funds sold     156,941   4.55 %     1,760     345,394   0.16 %     136
  Investment securities     154,667   3.43 %     1,307     129,644   2.82 %     902
Total interest earning assets     1,893,940   5.47 %     25,539     1,846,225   3.50 %     15,924
                       
Noninterest-earning assets:                        
  Cash and due from banks     18,098             18,748        
  All other assets (2)     62,228             63,569        
      TOTAL   $ 1,974,266           $ 1,928,542        
                         
LIABILITIES AND                        
  SHAREHOLDERS’ EQUITY                        
Interest-bearing liabilities:                        
  Deposits:                        
     Demand   $ 34,032   0.08 %   $ 7   $ 38,197   0.10 %   $ 9
     Money market and savings     626,666   2.01 %     3,104     723,109   0.37 %     665
     Time     310,246   3.81 %     2,911     149,293   0.36 %     132
  Other     71,108   4.33 %     760     100,664   2.39 %     592
Total interest-bearing liabilities     1,042,052   2.64 %     6,782     1,011,263   0.56 %     1,398
                         
Noninterest-bearing liabilities:                        
   Demand deposits     728,986             741,414        
   Accrued expenses and                        
     other liabilities     26,307             22,325        
Shareholders’ equity     176,921             153,540        
    TOTAL   $ 1,974,266           $ 1,928,542        
                         
Net interest income and margin (3)       4.02 %   $ 18,757       3.19 %   $ 14,526
                         
                         
(1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of net deferred loan (costs) fees of $(226,000) and $318,000, respectively.
(2) Other noninterest-earning assets includes the allowance for credit losses of $17.0 million and $14.1 million, respectively.
(3) Net interest margin is net interest income divided by total interest-earning assets.          
CALIFORNIA BANCORP AND SUBSIDIARY
INTERIM CONSOLIDATED NON GAAP DATA (UNAUDITED)
(Dollars in Thousands)
                     
REVENUE:   Three months ended
    03/31/23   12/31/22   09/30/22   06/30/22   03/31/22
                     
Net interest income   $ 18,757   $ 21,860     $ 18,363     $ 16,223     $ 14,526  
Non-interest income     1,107     1,962       1,484       1,394       2,534  
Total revenue   $ 19,864   $ 23,822     $ 19,847     $ 17,617     $ 17,060  
                     
                     
                     
                     
NON-INTEREST EXPENSE:   Three months ended
    03/31/23   12/31/22   09/30/22   06/30/22   03/31/22
                     
Non-interest expense   $ 11,843   $ 11,713     $ 11,217     $ 10,819     $ 10,916  
Capitalized loan origination costs     651     960       1,102       1,073       984  
Total operating expenses, before capitalization                
    of loan origination costs   $ 12,494   $ 12,673     $ 12,319     $ 11,892     $ 11,900  
                     

 


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Source: California BanCorp