Oakland, CA – April 28, 2022 – California BanCorp (NASDAQ: CALB), whose subsidiary is California Bank of Commerce, announced today its financial results for the first quarter ended March 31, 2022.

The Company reported net income of $3.7 million for the first quarter of 2022, representing an increase of $492,000, or 15%, compared to $3.2 million for the fourth quarter of 2021 and an increase of $864,000, or 31%, compared to $2.8 million in the first quarter of 2021.

Diluted per share earnings of $0.44 for the first quarter of 2022 compared to $0.38 for the fourth quarter of 2021 and $0.34 for the first quarter of 2021.

“We continued to execute well on our strategies to generate profitable growth in the first quarter, leading to positive trends in revenue, net interest margin, and efficiencies, which resulted in a higher level of earnings and returns,” said Steven Shelton, President and CEO of California BanCorp. “We had another strong quarter of loan production that was well balanced across all of our asset classes. Excluding PPP loans and loan sales, we had annualized loan growth of 31% in the first quarter, which enabled us to redeploy more of our excess liquidity into higher yielding earning assets, expand our net interest margin, and generate a higher level of profitability. Our loan pipeline remains strong and we remain well positioned to benefit from further increases in interest rates, which should enable us to continue generating higher levels of revenue, realizing more operating leverage, and continuing to drive profitable growth. While higher interest rates and inflationary pressures create more uncertainty around the operating environment over the remainder of the year, we believe our strong new client acquisition capabilities and value proposition will enable us to continue taking market share, while maintaining healthy asset quality in our well diversified, conservatively underwritten loan portfolio.”

“During the first quarter, we sold approximately $40 million of non-core loans from our solar financing portfolio, which enabled us to monetize the value of these loans, while also shortening the duration of our loan portfolio,” said Thomas A. Sa, Senior Executive Vice President, Chief Financial Officer and Chief Operating Officer of California BanCorp. “In addition, through proactive management of our investment portfolio, we were able to minimize the accounting impact of the increase in interest rates on our tangible book value. During the first quarter, our tangible book value per share increased 3% from the end of the prior quarter due to our strong financial performance.”

Financial Highlights:

Profitability – three months ended March 31, 2022 compared to December 31, 2021
• Net income of $3.7 million and $0.44 per diluted share, compared to $3.2 million and $0.38 per share, respectively.
• Revenue of $17.1 million increased $2.1 million, or 14%, compared to $15.0 million for the fourth quarter of 2021.
• Net fees from Paycheck Protection Program (“PPP”) loans contributed $791,000 to net interest income compared to $708,000 for the fourth quarter of 2021.
• Provision for loan losses of $950,000 increased $446,000, or 88%, primarily as a result of growth in the commercial and real estate other loan portfolios combined with continued adjustments in the qualitative reserve assessment in response to general macroeconomic changes.
• Non-interest income of $2.5 million increased $1.5 million, or 155%, primarily due to a gain recognized on the sale of a portion of our solar loan portfolio.
• Non-interest expense, excluding capitalized loan origination costs, of $11.9 million compared to $11.6 million for the fourth quarter of 2021.

Financial Position – March 31, 2022 compared to December 31, 2021
• Total assets decreased by $155.4 million, or 8%, to $1.86 billion.
• Total gross loans increased by $23.8 million, or 2%, to $1.40 billion. Excluding the impact of PPP loans forgiven by the SBA, total gross loans increased during the first quarter by $59.4 million, or 5%, to $1.36 billion.
• Total deposits decreased by $79.6 million, or 5%, to $1.60 billion.
• Total borrowings decreased by $74.2 million, or 70%, to $32.2 million due to repayment of a short term borrowing as well as borrowings under the Federal Reserve Paycheck Protection Program Liquidity Facility (“PPPLF”).
• Capital ratios remain healthy with a tier-one leverage ratio of 7.84%, tier I capital ratio of 8.63% and total risk-based capital ratio of 12.71%.

Net Interest Income and Margin:
Net interest income for the quarter ended March 31, 2022 was $14.5 million, an increase of $559,000 or 4%, from $14.0 million for the three months ended December 31, 2021, and an increase of $1.2 million, or 9%, from $13.3 million for the quarter ended March 31, 2021. The increase in net interest income compared to the fourth quarter of 2021 was primarily attributable to the growth of the loan portfolio combined with a reduction in the average cost of deposits. Compared to the first quarter of 2021, the increase in net interest income resulted from a more favorable mix of earning assets offset, in part, by a reduction in the amortization of net fees received on PPP loans.
The Company’s net interest margin for the first quarter of 2022 was 3.19%, compared to 2.81% for the fourth quarter of 2021 and 2.94% for the same period in 2021. The increase in margin compared to the prior quarter was primarily due to a more favorable mix of earning assets combined with a reduction in the average cost of deposits. The increase in margin from the same period last year was primarily the result of an increase in loan yields resulting from growth in the commercial and real estate other loan portfolios combined with a reduction in the average cost of deposits, partially offset by a reduction of net fees recognized on PPP loans.

Non-Interest Income:
The Company’s non-interest income for the quarters ended March 31, 2022, December 31, 2021, and March 31, 2021 was $2.5 million, $994,000 and $921,000, respectively. The increase in non-interest income compared to the fourth quarter of 2021 and the first quarter of 2021 was primarily due to a gain of $1.4 million recognized on the sale of a portion of our solar loan portfolio.
Net interest income and non-interest income comprised total revenue of $17.1 million, $15.0 million, and $14.3 million for the quarters ended March 31, 2022, December 31, 2021, and March 31, 2021, respectively.

Non-Interest Expense:
The Company’s non-interest expense for the quarters ended March 31, 2022, December 31, 2021, and March 31, 2021 was $10.9 million, $10.0 million, and $10.1 million, respectively. The increase in non-interest expense was primarily due to a reduction in capitalized loan origination costs combined with an increase in salaries and benefits related to investments to support the continued growth of the business and the seasonal impact of higher payroll taxes. Excluding capitalized loan origination costs, non-interest expense for the first quarter of 2022, the fourth quarter of 2021 and the first quarter of 2021 was $11.9 million, $11.6 million, and $11.6 million, respectively.
The Company’s efficiency ratio, the ratio of non-interest expense to revenues, was 63.99%, 66.90%, and 70.70% for the quarters ended March 31, 2022, December 31, 2021, and March 31, 2021, respectively.

Balance Sheet:
Total assets of $1.86 billion as of March 31, 2022, represented a decrease of $155.4 million, or 8%, compared to $2.01 billion at December 31, 2021 and a decrease of $88.0 million, or 5%, compared to $1.95 billion at March 31, 2021. The decrease in total assets from previous quarters was primarily due to decreased liquidity resulting from deposit outflows related to forgiveness of PPP loans combined with a reduction in PPPLF activity.
Total gross loans increased by $23.8 million, or 2%, to $1.40 billion at March 31, 2022, from $1.38 billion at December 31, 2021 and decreased by $69.8 million, or 5% compared to $1.47 billion at March 31, 2021.
During the first quarter of 2022, commercial and real estate other loans increased by $48.5 million and $44.4 million, respectively, due to organic growth. Partially offsetting these increases within the total loan portfolio, SBA loans decreased by $37.4 million primarily due to PPP loan forgiveness. Additionally, during the first quarter of 2022, the Company sold $39.8 million of residential solar loans.

Year-over-year, commercial and real estate other loans increased by $83.8 million and $168.1 million, respectively, due to organic growth. These increases were partially offset by a decrease in SBA loans of $320.2 million primarily due to PPP loan forgiveness.

As a result of the CARES Act PPP, which was launched in April 2020 and re-launched in January 2021, the Company funded approximately $491.3 million in loans. Approximately $454.4 million of those balances have been granted forgiveness by the SBA as of March 31, 2022.

Total deposits decreased by $79.6 million, or 5%, to $1.60 billion at March 31, 2022, from $1.68 billion at December 31, 2021 and decreased by $29.2 million, or 2%, from $1.63 billion at March 31, 2021. The decrease in total deposits from the end of the fourth quarter of 2021 was primarily due to a reduction in non-interest bearing demand deposits of $24.5 million, money market and savings deposits of $30.7 million, and time deposits of $23.6 million.
Compared to the same period last year, the decrease in total deposits was primarily concentrated in time deposits as the result of reduced reliance on brokered certificates of deposit. Non-interest bearing deposits, primarily commercial business operating accounts, represented 46.7% of total deposits at March 31, 2022, compared to 45.9% at December 31, 2021 and 45.6% at March 31, 2021.

As of March 31, 2022, the Company had outstanding borrowings, excluding junior subordinated debt securities, of $32.2 million, compared to $106.4 million at December 31, 2021 and $134.8 million at March 31, 2021. The decrease in borrowings during the first quarter of 2022 was comprised primarily of the repayment of a $50.0 million short-term FHLB advance combined with a $24.2 million reduction in PPPLF activity.

Asset Quality:

The provision for credit losses increased to $950,000 for the first quarter of 2022, compared to $504,000 for the fourth quarter of 2021 and $300,000 for the first quarter of 2021. Net loan recoveries in the first quarter of 2022 were $1,000 or 0.00% of gross loans, compared to net recoveries of $6,000, or 0.00%, in the fourth quarter of 2021 and net recoveries of $166,000, or 0.01%, in the first quarter of 2021.
Non-performing assets (“NPAs”) to total assets of 0.03% at March 31, 2022 compared to 0.01% at December 31, 2021 and 0.01% at March 31, 2021, with non-performing loans of $549,000, $232,000 and $234,000, respectively, on those dates.

The allowance for loan losses increased by $951,000 to $15.0 million, or 1.07% of total loans, at March 31, 2022, compared to $14.1 million, or 1.02% of total loans, at December 31, 2021 and $14.6 million, or 0.99% of total loans at March 31, 2021. The increase in the allowance as a percentage of total loans at March 31, 2022 compared to December 31, 2021 and March 31, 2021 reflects an increase in the qualitative reserve assessment in response to general macroeconomic changes pertaining to the mix of our loan portfolio.

Capital Adequacy:
At March 31, 2022, shareholders’ equity totaled $154.6 million compared to $150.8 million at December 31, 2021 and $139.2 million one year ago. As a result, the Company’s total risk-based capital ratio, tier one capital ratio and leverage ratio of 12.49%, 8.49%, and 7.84%, respectively, were all above the regulatory standards for “well-capitalized” institutions of 10.00%, 8.00% and 5.00% respectively.

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 President and Chief Executive Officer seshelton@bankcbc.com
Thomas A. Sa, (510) 457-3775
Senior Executive Vice 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; 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, 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, 2021 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, 2022, which we expect to file with the SEC during the second quarter of 2022, and readers of this release are urged to review the additional information that will be contained in that report.

The COVID-19 pandemic has created economic and financial disruptions that have adversely affected, and may continue to adversely affect, our business, operations, financial performance and prospects. Even after the COVID-19 pandemic subsides, it is possible that the U.S. and other major economies experience or continue to experience a prolonged recession, which could materially and adversely affect our business, operations, financial performance and prospects. Statements about the effects of the COVID-19 pandemic on our business, operations, financial performance and prospects may constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties and us.
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:

QUARTERLY HIGHLIGHTS:Q1 2022Q4 2021$%Q1 2021$%Interest income15,924$ 15,543$ 381$ 2%15,032$ 892$ 6%Interest expense1,398 1,576 (178) -11%1,696 (298) -18% Net interest income14,526 13,967 559 4%13,336 1,190 9%Provision for loan losses950 504 446 88%300 650 217% Net interest income after provision for loan losses13,576 13,463 113 1%13,036 540 4%Non-interest income2,534 994 1,540 155%921 1,613 175%Non-interest expense10,916 10,009 907 9%10,080 836 8% Income before income taxes5,194 4,448 746 17%3,877 1,317 34%Income tax expense1,521 1,267 254 20%1,068 453 42% Net income3,673$ 3,181$ 492$ 15%2,809$ 864$ 31%Diluted earnings per share0.44$ 0.38$ 0.06$ 16%0.34$ 0.10$ 29%Net interest margin3.19%2.81%2.94%Efficiency ratio63.99%66.90%70.70%CALIFORNIA BANCORP AND SUBSIDIARYSELECTED FINANCIAL INFORMATION (UNAUDITED) – PROFITABILITY(Dollars in Thousands, Except Per Share Data)ChangeChange+38 Basis Points-291 Basis Points+25 Basis Points-671 Basis Points

PERIOD-END HIGHLIGHTS:Q1 2022Q4 2021$%Q1 2021$%Total assets1,859,595$ 2,014,996$ (155,401)$ -8%1,947,588$ (87,993)$ -5%Gross loans1,400,474 1,376,649 23,825 2%1,470,313 (69,839) -5%Deposits1,600,522 1,680,138 (79,616) -5%1,629,715 (29,193) -2%Tangible equity147,068 143,241 3,827 3%131,634 15,434 12%Tangible book value per share17.78$ 17.33$ 0.45$ 3%16.07$ 1.71$ 11%Tangible equity / total assets7.91%7.11%6.76%Gross loans / total deposits87.50%81.94%90.22%Noninterest-bearing deposits / total deposits46.65%45.90%45.56%

QUARTERLY AVERAGEHIGHLIGHTS:Q1 2022Q4 2021$%Q1 2021$%Total assets1,928,542$ 2,054,490$ (125,948)$ -6%1,922,739$ 5,803$ 0%Total earning assets1,846,225 1,971,558 (125,333) -6%1,839,437 6,788 0%Gross loans1,371,187 1,330,044 41,143 3%1,415,506 (44,319) -3%Deposits1,652,013 1,759,592 (107,579) -6%1,569,170 82,843 5%Tangible equity146,032 142,118 3,914 3%129,865 16,167 12%Tangible equity / total assets7.57%6.92%6.75%Gross loans / total deposits83.00%75.59%90.21%Noninterest-bearing deposits / total deposits44.88%45.24%43.97%ChangeChange

CALIFORNIA BANCORP AND SUBSIDIARYSELECTED FINANCIAL INFORMATION (UNAUDITED) – FINANCIAL POSITION(Dollars in Thousands, Except Per Share Data)ChangeChange+115 Basis Points+75 Basis Points+556 Basis Points-272 Basis Points+82 Basis Points+741 Basis Points-721 Basis Points+80 Basis Points+91 Basis Points+109 Basis Points+65 Basis Points-36 Basis Points

ALLOWANCE FOR LOAN LOSSES:03/31/2212/31/2109/30/2106/30/2103/31/21Balance, beginning of period14,081$ 13,571$ 13,240$ 14,577$ 14,111$ Provision for loan losses, quarterly950 504 300 (1,100) 300 Charge-offs, quarterly- – – (278) – Recoveries, quarterly1 6 31 41 166 Balance, end of period15,032$ 14,081$ 13,571$ 13,240$ 14,577$

NONPERFORMING ASSETS:03/31/2212/31/2109/30/2106/30/2103/31/21Loans accounted for on a non-accrual basis549$ 232$ 1,233$ 1,234$ 234$ Loans with principal or interest contractually past due 90 days or more and still accruing interest- – – – – Nonperforming loans549$ 232$ 1,233$ 1,234$ 234$ Other real estate owned- – – – – Nonperforming assets549$ 232$ 1,233$ 1,234$ 234$ Loans restructured and in compliance with modified terms- – – – – Nonperforming assets and restructured loans549$ 232$ 1,233$ 1,234$ 234$ Nonperforming loans by asset type: Commercial-$ -$ -$ -$ -$ Real estate other- – 1,000 1,000 – Real estate construction and land- – – – – SBA549 232 233 234 234 Other- – – – – Nonperforming loans549$ 232$ 1,233$ 1,234$ 234$ ASSET QUALITY:03/31/2212/31/2109/30/2106/30/2103/31/21Allowance for loan losses / gross loans1.07%1.02%1.04%0.98%0.99%Allowance for loan losses / nonperforming loans2738.07%6069.40%1100.65%1072.93%6229.49%Nonperforming assets / total assets0.03%0.01%0.06%0.07%0.01%Nonperforming loans / gross loans0.04%0.02%0.09%0.09%0.02%Net quarterly charge-offs / gross loans0.00%0.00%0.00%0.02%-0.01%

CALIFORNIA BANCORP AND SUBSIDIARYSELECTED INTERIM FINANCIAL INFORMATION (UNAUDITED) – ASSET QUALITY(Dollars in Thousands)
Three months ended03/31/2212/31/2103/31/21INTEREST INCOMELoans14,886$ 14,520$ 14,584$ Federal funds sold136 216 88 Investment securities902 807 360 Total interest income15,924 15,543 15,032 INTEREST EXPENSEDeposits806 937 1,191 Other592 639 505 Total interest expense1,398 1,576 1,696 Net interest income14,526 13,967 13,336 Provision for loan losses950 504 300 Net interest income after provision for loan losses13,576 13,463 13,036 NON-INTEREST INCOME Service charges and other fees889 1,038 641 Gain on sale of loans1,393 – – Other non-interest income 252 (44) 280 Total non-interest income2,534 994 921 NON-INTEREST EXPENSE Salaries and benefits7,093 6,370 6,367 Premises and equipment1,302 1,320 1,197 Other2,521 2,319 2,516 Total non-interest expense10,916 10,009 10,080 Income before income taxes5,194 4,448 3,877 Income taxes1,521 1,267 1,068 NET INCOME3,673$ 3,181$ 2,809$ EARNINGS PER SHARE Basic earnings per share0.44$ 0.39$ 0.34$ Diluted earnings per share0.44$ 0.38$ 0.34$ Average common shares outstanding8,276,761 8,255,340 8,179,667 Average common and equivalent shares outstanding8,392,802 8,342,032 8,242,467 PERFORMANCE MEASURES Return on average assets0.77%0.61%0.59%Return on average equity9.70%8.43%8.29%Return on average tangible equity10.20%8.88%8.77%Efficiency ratio63.99%66.90%70.70%CALIFORNIA BANCORP AND SUBSIDIARYINTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)(Dollars in Thousands, Except Per Share Data)03/31/2212/31/2109/30/2106/30/2103/31/21ASSETSCash and due from banks18,228$ 4,539$ 22,424$ 26,159$ 18,475$ Federal funds sold206,305 465,917 578,626 366,347 342,305 Investment securities171,764 103,278 82,108 61,142 58,105 Loans: Commercial522,808 474,281 428,169 425,643 439,044 Real estate other741,651 697,212 664,202 616,451 573,520 Real estate construction and land51,204 43,194 41,312 41,558 45,550 SBA44,040 81,403 107,096 204,734 364,273 Other40,771 80,559 61,193 64,253 47,926 Loans, gross1,400,474 1,376,649 1,301,972 1,352,639 1,470,313 Unamortized net deferred loan costs (fees)2,434 1,688 760 (629) (1,569) Allowance for loan losses(15,032) (14,081) (13,571) (13,240) (14,577) Loans, net1,387,876 1,364,256 1,289,161 1,338,770 1,454,167 Premises and equipment, net4,047 4,405 4,227 5,089 5,452 Bank owned life insurance24,614 24,412 24,247 24,085 23,920 Goodwill and core deposit intangible7,503 7,513 7,524 7,534 7,544 Accrued interest receivable and other assets39,258 40,676 40,762 39,937 37,620 Total assets1,859,595$ 2,014,996$ 2,049,079$ 1,869,063$ 1,947,588$ LIABILITIES Deposits: Demand noninterest-bearing746,673$ 771,205$ 790,646$ 791,580$ 742,574$ Demand interest-bearing36,419 37,250 39,679 36,268 33,022 Money market and savings686,781 717,480 750,112 674,390 670,517 Time130,649 154,203 161,617 177,534 183,602 Total deposits1,600,522 1,680,138 1,742,054 1,679,772 1,629,715 Junior subordinated debt securities54,063 54,028 59,009 24,745 24,729 Other borrowings32,166 106,387 79,536 – 134,819 Accrued interest payable and other liabilities18,273 23,689 21,241 20,805 19,147 Total liabilities1,705,024 1,864,242 1,901,840 1,725,322 1,808,410 SHAREHOLDERS’ EQUITY Common stock109,815 109,473 109,009 108,417 108,430 Retained earnings44,862 41,189 38,008 34,792 30,630 Accumulated other comprehensive (loss)(106) 92 222 532 118 Total shareholders’ equity154,571 150,754 147,239 143,741 139,178 Total liabilities and shareholders’ equity1,859,595$ 2,014,996$ 2,049,079$ 1,869,063$ 1,947,588$ – – – – – CAPITAL ADEQUACY Tier I leverage ratio7.84%7.23%7.29%7.53%7.46%Tier I risk-based capital ratio8.49%8.62%9.17%9.35%9.47%Total risk-based capital ratio12.49%12.75%13.92%11.93%12.34%Total equity/ total assets8.31%7.48%7.19%7.69%7.15%Book value per share18.69$ 18.24$ 17.85$ 17.47$ 16.99$ Common shares outstanding8,270,901 8,264,300 8,250,109 8,229,116 8,189,598 CALIFORNIA BANCORP AND SUBSIDIARYINTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)(Dollars in Thousands)
Three months ended March 31,Three months ended December 31, YieldsInterestYieldsInterest AverageorIncome/AverageorIncome/ BalanceRatesExpenseBalanceRatesExpenseASSETSInterest earning assets: Loans (1) 1,371,187$ 4.40%14,886$ 1,330,044$ 4.33%14,520$ Federal funds sold345,394 0.16%136 536,503 0.16%216 Investment securities129,644 2.82%902 105,011 3.05%807 Total interest earning assets1,846,225 3.50%15,924 1,971,558 3.13%15,543 Noninterest-earning assets: Cash and due from banks18,748 18,886 All other assets (2)63,569 64,046 TOTAL 1,928,542$ 2,054,490$ LIABILITIES AND SHAREHOLDERS’ EQUITYInterest-bearing liabilities: Deposits: Demand 38,197$ 0.10%9$ 37,379$ 0.10%9$ Money market and savings 723,109 0.37%665 766,826 0.40%769 Time149,293 0.36%132 159,420 0.40%159 Other100,664 2.39%592 122,722 2.07%639 Total interest-bearing liabilities1,011,263 0.56%1,398 1,086,347 0.58%1,576 Noninterest-bearing liabilities: Demand deposits741,414 795,967 Accrued expenses and other liabilities22,325 22,539 Shareholders’ equity153,540 149,637 TOTAL1,928,542$ 2,054,490$ Net interest income and margin (3)3.19%14,526$ 2.81%13,967$ (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 fees of $318,000 and $125,000, respectively.(2) Other noninterest-earning assets includes the allowance for loan losses of $14.1 million and $13.6 million, respectively.(3) Net interest margin is net interest income divided by total interest-earning assets.CALIFORNIA BANCORP AND SUBSIDIARYINTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)(Dollars in Thousands)20222021
Three months ended March 31, YieldsInterestYieldsInterest AverageorIncome/AverageorIncome/ BalanceRatesExpenseBalanceRatesExpenseASSETSInterest earning assets: Loans (1) 1,371,187$ 4.40%14,886$ 1,415,506$ 4.18%14,584$ Federal funds sold345,394 0.16%136 369,223 0.10%88 Investment securities129,644 2.82%902 54,708 2.67%360 Total interest earning assets1,846,225 3.50%15,924 1,839,437 3.31%15,032 Noninterest-earning assets: Cash and due from banks18,748 23,033 All other assets (2)63,569 60,269 TOTAL 1,928,542$ 1,922,739$ LIABILITIES AND SHAREHOLDERS’ EQUITYInterest-bearing liabilities: Deposits: Demand 38,197$ 0.10%9$ 34,512$ 0.13%11$ Money market and savings 723,109 0.37%665 644,740 0.61%972 Time149,293 0.36%132 199,953 0.42%208 Other100,664 2.39%592 192,803 1.06%505 Total interest-bearing liabilities1,011,263 0.56%1,398 1,072,008 0.64%1,696 Noninterest-bearing liabilities: Demand deposits741,414 689,965 Accrued expenses and other liabilities22,325 23,351 Shareholders’ equity153,540 137,415 TOTAL1,928,542$ 1,922,739$ Net interest income and margin (3)3.19%14,526$ 2.94%13,336$ (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 fees of $318,000 and $1.2 million, respectively.(2) Other noninterest-earning assets includes the allowance for loan losses of $14.1 million and $14.2 million, respectively.(3) Net interest margin is net interest income divided by total interest-earning assets.CALIFORNIA BANCORP AND SUBSIDIARYINTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)(Dollars in Thousands)20222021

REVENUE:Q1 2022Q4 2021Q3 2021Q2 2021Q1 2021Net interest income14,526$ 13,967$ 13,841$ 13,586$ 13,336$ Non-interest income2,534 994 1,302 956 921 Total revenue17,060$ 14,961$ 15,143$ 14,542$ 14,257$ PPP RELATED DEFERRED FEESAmortizationDeferred AND COSTS:of DeferredBalance2021 Program2020 ProgramTotalBalanceRemainingPPP fees4,479$ 9,086$ 13,565$ 12,443$ 1,122$ PPP capitalized loan origination costs540 2,451 2,991 2,868 123$ Net PPP fees3,939$ 6,635$ 10,574$ 9,575$ 999$ IMPACT OF PPP ACTIVITY REFLECTED IN NET INTEREST INCOME:Q1 2022Q4 2021Q3 2021Q2 2021Q1 2021PPP fees1,014$ 817$ 1,909$ 2,185$ 2,222$ PPP capitalized loan origination costs223 109 348 514 633 Net PPP fees791$ 708$ 1,561$ 1,671$ 1,589$ NON-INTEREST EXPENSE:Q1 2022Q4 2021Q3 2021Q2 2021Q1 2021Total non-interest expense10,916$ 10,009$ 10,513$ 9,835$ 10,080$ Total capitalized loan origination costs984 1,601 1,197 1,217 1,513 Total operating expenses, before capitalization of loan origination costs11,900$ 11,610$ 11,710$ 11,052$ 11,593$ GROSS LOANS:Q1 202212/31/2109/30/2106/30/2103/31/21Gross loans1,400,474$ 1,376,649$ 1,301,972$ 1,352,639$ 1,470,313$ PPP loans36,905 72,527 97,451 194,472 353,426 Gross loans, excluding PPP loans1,363,569$ 1,304,122$ 1,204,521$ 1,158,167$ 1,116,887$ Amortization of Deferred Balance CALIFORNIA BANCORP AND SUBSIDIARYINTERIM CONSOLIDATED NON GAAP DATA (UNAUDITED)(Dollars in Thousands)Deferred Balance at Origination