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California BanCorp Reports Record Quarterly Earnings of $2.5 Million, Up 20% from 3Q17, and a Strong 14% Core Deposit Growth

OAKLAND, Calif., Oct. 30, 2018 (GLOBE NEWSWIRE) — California BanCorp (the “Company”) (OTCQX: CALB), the parent company of California Bank of Commerce (the “Bank”), today announced record earnings and strong asset growth year-over-year for the third quarter of 2018. 

Net income increased 20% to $2.5 million, or $0.34 per share for the third quarter of 2018 from $2.1 million, or $0.31 per share, for the third quarter of 2017. 

For the first nine months ended September 30, 2018, net income increased 17% to $6.6 million, or $0.94 per share, compared to $5.6 million, or $0.85 per share, for the first nine months of 2017. Net income for the nine months ended September 30, 2018, excluding non-recurring expenses was $7.2 million, a 29% increase over 2017, and $1.03 per share, a 21% increase over per share income in the prior year period.

Earnings growth between the periods was the result of strong loan growth of $66 million to $785 million at September 30, 2018, compared to a year ago, including commercial real estate loans, which increased by $46 million, or 13% to $399 million and commercial & industrial loans, which increased by $15 million, or 5% to $330 million.

Total assets reached a record $955 million as of September 30, 2018, up 12% or $102 million compared to a year ago. This growth was propelled by strong commercial deposit generation as shown by a $49 million, or 17%, increase in non-interest bearing deposits and an additional $42 million, or 12% increase, in core commercial interest-bearing deposits.

Also during the third quarter of 2018, the Company completed a successful private placement of common stock for a net increase in equity of $23.6 million. “These funds allowed the Company to pay-off its outstanding senior debt prior to quarter end and additionally provide the capital to support our organic growth targets over the next several years,” stated Steve Shelton, President and Chief Executive Officer.

Financial Highlights

September 30, 2018 compared to September 30, 2017

  • Total assets increased by $102 million, or 12% to a record level of $955 million.
  • Gross loans increased by $66 million, or 9% to a record level of $785 million.
  • Total deposits increased by $78 million, or 10% to a record level of $826 million.
  • Total core deposits increased by $91 million, or 14% to $733 million.
  • Total equity increased by $34 million, or 40% to $118 million.

Income Statement

Three months ended September 30, 2018 compared to September 30, 2017

  • Net income increased by $418 thousand, or 20% to $2.5 million.
  • Net interest income increased by $1.2 million, or 14% to $9.2 million.
  • Non-interest income increased by $141 thousand, or 18% to $927 thousand.
  • Return on average tangible common equity decreased to 10.2% from 10.9%.
  • Return on average assets increased to 1.04% from 1.00%.

Income Statement

Nine months ended September 30, 2018 compared to September 30, 2017

  • Net income increased by $1.0 million, or 17% to $6.6 million.
  • Net interest income increased by $3.0 million, or 13% to $26.3 million.
  • Non-interest income increased by $529 thousand, or 23% to $2.9 million.
  • Return on average tangible common equity decreased to 10.2% from 10.3%.
  • Return on average assets increased to 0.97% from 0.95%.
  • Core earnings increased by $1.6 million or 29% to $7.2 million.
  • Core return on average tangible common equity increased to 11.19% from 10.30%.
  • Core return on average total assets increased to 1.06% from 0.95%.

Balance Sheet

Total loans increased by $66 million or 9% from $719 million at September 30, 2017, to $785 million at September 30, 2018. The largest categories of growth within the loan portfolio were in commercial real estate at $46 million and commercial & industrial loans at $15 million. 

As a result of its strong cash position and with higher market interest rates during the third quarter of 2018, the Bank deployed about $31 million in a mix of government guaranteed investment securities at the end of the quarter.

Total deposits increased by $78 million, or 10% to $826 million at September 30, 2018, from $749 million at September 30, 2017, with growth primarily concentrated in commercial non-interest-bearing deposits of $49 million, which increased by 17% to $341 million and in core commercial interest-bearing accounts of $43 million, which increased by 12% to $392 million. Time deposits increased by $1.4 million, or 2% to $94 million at September 30, 2018. Non-interest bearing deposits were 41% of total deposits at September 30, 2018, which has contributed to a relatively lower deposit beta compared to other banks. Strong organic deposit growth during the third quarter of 2018 provided the funding to return a $15.2 million higher cost brokered deposit in addition to another $17.9 million higher cost deposit late in the period.

Shareholder’s Equity

Total shareholder’s equity increased by $33.8 million, or 40% from $84.4 million at September 30, 2017, to $118.2 million at September 30, 2018. The $33.8 million increase includes earnings during the twelve month period totaling $6.6 million, proceeds from the exercise of stock options totaling $3.1 million and $23.6 million in net proceeds from the Company’s successful private placement of common stock during the third quarter of 2018. Tangible book value per common share increased by 16% between the periods, from $12.01 at September 30, 2017, to $13.87 at September 30, 2018.

Net Interest Income and Net Interest Margin – three months ended September 30, 2018 and September 30, 2017

Net interest income was $9.2 million for the three months ended September 30, 2018, an increase of $1.2 million or 14% from $8.1 million for the same period in 2017. The increase in net interest income includes an increase of $1.6 million in interest income; the largest component of which was an increase in interest and fees on loans of $1.1 million. This increase in interest and fees on loans was primarily attributable to an increase in the average balance of loans outstanding of $56 million and the change in the Prime interest rate between the periods, with the yield on loans increasing by 21 basis points from 4.94% during the 2017 quarter to 5.15% during the current quarter.

As a result of strong deposit growth of $116 million, or 16% in average total deposits to $841 million during the third quarter of 2018, coupled with above average loan pay-offs, the Bank’s average cash and cash equivalent balances were substantially higher during the period, increasing by $77 million, or 138%, to $132 million. This growth, in addition to the increase in average yield to 1.98%, led to a $484 thousand, or 272% increase in interest income on cash and cash equivalents to $662 thousand in the current quarter compared to the 2017 quarter.

With the higher level of lower yielding cash balances during the third quarter of 2018 when compared to loans, the yield on total interest-earning assets increased by a modest 2 basis points to 4.64% compared to 4.62% during the third quarter of 2017. Also, during the third quarter of 2017, the Bank maintained a very strong average loan to deposit ratio of 96.9% loan as a result of above average loan growth during the first half of 2017. The average loan to deposit ratio was 90.0% during the third quarter of 2018, which muted the yield expansion on average total earning assets between the periods.

Both non-interest-bearing and interest-bearing deposits grew at a strong rate between the quarters, with average non-interest-bearing deposits up by $65 million, or 23% to $349 million and average interest-bearing deposits up by $51 million, or 12% to $492 million during the third quarter of 2018. The increase in the average balance of interest-bearing deposits, as well as higher interest rates between the periods led to an increase in interest paid on deposits of $491 thousand to $1.2 million during the third quarter of 2018 and an increase in the average rate paid on total deposits of 18 basis points to 0.57% in the third quarter of 2018 compared to 0.39% in the 2017 quarter.

As a result of the additional capital funding acquired during the third quarter of 2018, the Company paid-off $11.5 million of senior debt during the period, reducing average borrowed funds by $5.0 million to $11 million during the third quarter of 2018 compared to the 2017 quarter. While the average balance declined, the average rate paid on these borrowed funds rose to 5.4% during the third quarter of 2018, up by 0.26% from 5.2% paid during the 2017 period, as the borrowing mix between the periods changed. At September 30, 2018, the Company’s total borrowings were $5.0 million in subordinated debt. 

The combination of the strong average deposit balances and commensurate heavy cash position during the third quarter of 2018, when compared to 2017, led the net interest margin to decline by 10 basis points to 4.05% during the period compared to 4.15% in the 2017 quarter.

Net Interest Income and Net Interest Margin – nine months ended September 30, 2018 and September 30, 2017

Net interest income for the nine months ended September 30, 2018, was $26.3 million, an increase of $3.0 million, or 13.0% from the $23.3 million for the same period in 2017. During the nine month period the Bank benefited from a significant increase in average deposit balances of $123 million or 18% to $802 million, which was deployed primarily into a $62 million increase in average total loans and a $63 million increase in average interest-earning cash and cash equivalent balances. 

While average total interest-earning assets increased by $124 million, or 17% to $859 million during the 2018 period, the average yield increased by only 3 basis points to 4.65%, primarily as a result of the strong increase in the lower-yielding cash and cash equivalent balances. The average yield on total average loans including fees for the nine month period in 2018 was 5.08%, up by 21 basis points compared to the 4.87% yield during the same 2017 period.

Of the $122 million increase in average total deposit balances between the nine month periods, $54 million were non-interest-bearing deposits while $68 million were interest-bearing. The overall cost of average total deposit balances was up by 19 basis points to 0.51% during the 2018 period compared to 0.33% during 2017. Average borrowed funds declined by $12.4 million to $14.4 million during the 2018 period while their cost increased by 2.7% to 5.3% in 2018 compared to 2017.

As a result of the strong increase in higher cost interest-bearing balances on the funding side and the impact of the higher volume but lower return cash and cash equivalent balances to interest-earning assets, the net interest margin declined by 14 basis points to 4.09% during the nine month period ended September 30, 2018, compared to the same period in 2017.

Non-Interest Income and Expense – three months ended September 30, 2018 and September 30, 2017

During the three months ended September 30, 2018, non-interest income totaled $927 thousand, an increase of $141 thousand, or 18% from the three month period ended September 30, 2017. The increase was primarily the result of higher commercial deposit account analysis and loan related fees partially offset by a $79 thousand decrease in gains on loan sales during the current quarter compared to the 2017 quarter.

During the three months ended September 30, 2018, total non-interest expenses increased by $876 thousand, or 16% to $6.2 million compared to the same 2017 quarter. Of the increase, $520 thousand was in net salaries and benefits expenses, the result of hiring key executive and support staff positions to support the Company’s continued growth. Occupancy and FF&E expense increased by $94 thousand or 15% to $736 thousand in the 2018 third quarter as the Bank expanded into its new Walnut Creek location in the second half of 2017 and also expanded its Oakland space early in 2018. Other non-interest expenses increased by $262 thousand, or 17% to $1.8 million during the 2018 third quarter, primarily as a result of increased professional fees during the period. 

Non-Interest Income and Expense – nine months ended September 30, 2018 and September 30, 2017

During the nine months ended September 30, 2018, non-interest income totaled $2.9 million, a $529 thousand, or 23% increase over the same period in 2017. This increase for the nine-month period was primarily the result of higher commercial deposit account analysis fees and loan fee income compared to the 2017 period.

During the nine months ended September 30, 2018, non-interest expenses increased by $4.2 million or 28% to $19.3 million compared to the same period in 2017. Of this increase, $2.7 million was in net salaries and benefits expenses, the result of hiring key executive and support staff positions to support the Company’s continued growth, a non-recurring severance expense for the recent CEO transition, and a decrease in deferred loan origination costs compared to the nine month period in 2017, when loan origination activity was at an above trend pace. Occupancy and FF&E expense increased by $353 thousand or 20% to $2.1 million in the 2018 quarter as the Bank expanded into its new Walnut Creek location in the second half of 2017 and also expanded its Oakland space early in 2018. Other non-interest expenses increased by $1.2 million, or 27% to $5.6 million during the 2018 period, primarily as a result of increased operating expenses of $573 thousand at the Bank holding company (the holding company was formed at June 30, 2017), in addition to higher professional fees. Bank holding company expenses included non-recurring costs of $514 thousand in the 2018 period.

Credit Quality

Credit quality remains strong, with non-performing assets (“NPAs”) to total assets at 0.29% at September 30, 2018, compared to 0.12% at September 30, 2017, with non-performing loans at $2.7 million and $1.0 million, respectively, on those dates. 

The loan loss reserve was $10.2 million, or 1.30% of total loans at September 30, 2018, compared to $9.0 million, or 1.25% at September 30, 2017.

Closing Remarks

“We are pleased to post another record breaking quarter for both earnings and total loans and deposits,” said Chairman Stephen Cortese. “We continue to execute on our strategic initiative to safely grow our company while adding to our shareholders’ investment value.”

Please see our detailed Third Quarter 2018 Unaudited Summary Financial Statements for more information.

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 the San Francisco Bay Area. The stock trades on the OTCQX marketplace under the symbol CALB (formerly CABC). For more information on California BanCorp, call us at (510) 457-3751, or visit us at www.californiabankofcommerce.com.

 

California BanCorp
Steven E. Shelton, (510) 457-3751
President and Chief Executive Officer
seshelton@bankcbc.com

 

Randall D. Greenfield, (510) 457-3769
Senior EVP and Chief Financial Officer
rgreenfield@bankcbc.com

 

Source: California BanCorp

 

California BanCorp Financial Data as of September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ Thousands)

 

For the three months ended

 

Change %

 

For the nine months ended

 

Change %

Income Statement

 

9/30/2018

 

6/30/2018

 

9/30/2017

 

QoQ

 

YoY

 

9/30/2018

 

9/30/2017

 

YTDoYTD

Interest and fees on loans

 

$

  9,839

 

 

$

  9,384

 

 

$

  8,749

 

 

5

%

 

12

%

 

$

  28,323

 

 

$

  24,914

 

 

14

%

Other interest income

 

 

  756

 

 

 

  424

 

 

 

  246

 

 

78

%

 

207

%

 

 

  1,583

 

 

 

  513

 

 

209

%

Total interest income

 

 

  10,595

 

 

 

  9,808

 

 

 

  8,995

 

 

8

%

 

18

%

 

 

  29,906

 

 

 

  25,427

 

 

18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

  1,205

 

 

 

  997

 

 

 

  715

 

 

21

%

 

69

%

 

 

  3,065

 

 

 

  1,660

 

 

85

%

Interest on borrowings and subordinated debentures

 

 

  151

 

 

 

  209

 

 

 

  208

 

 

(28

%)

 

(27

%)

 

 

  567

 

 

 

  509

 

 

11

%

Total interest expense

 

 

  1,356

 

 

 

  1,206

 

 

 

  923

 

 

12

%

 

47

%

 

 

  3,632

 

 

 

  2,169

 

 

67

%

Net interest income

 

 

  9,239

 

 

 

  8,602

 

 

 

  8,072

 

 

7

%

 

14

%

 

 

  26,274

 

 

 

  23,258

 

 

13

%

Provision for loan loss

 

 

  394

 

 

 

  191

 

 

 

  296

 

 

106

%

 

33

%

 

 

  845

 

 

 

  2,110

 

 

(60

%)

Net interest income after provision

 

 

  8,845

 

 

 

  8,411

 

 

 

  7,776

 

 

5

%

 

14

%

 

 

  25,429

 

 

 

  21,148

 

 

20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and other account fees

 

 

  350

 

 

 

  306

 

 

 

  215

 

 

14

%

 

63

%

 

 

  767

 

 

 

  656

 

 

17

%

Loan related fees

 

 

  404

 

 

 

  320

 

 

 

  338

 

 

26

%

 

20

%

 

 

  1,150

 

 

 

  974

 

 

18

%

Net gains on loan sales

 

 

  –

 

 

 

  108

 

 

 

  79

 

 

(100

%)

 

(100

%)

 

 

  283

 

 

 

  200

 

 

42

%

Other

 

 

  173

 

 

 

  154

 

 

 

  154

 

 

12

%

 

12

%

 

 

  654

 

 

 

  495

 

 

32

%

Total non-interest income

 

 

  927

 

 

 

  888

 

 

 

  786

 

 

4

%

 

18

%

 

 

  2,854

 

 

 

  2,325

 

 

23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

  3,692

 

 

 

  3,950

 

 

 

  3,172

 

 

(7

%)

 

16

%

 

 

  11,521

 

 

 

  8,842

 

 

30

%

Occupancy and equipment expenses

 

 

  736

 

 

 

  746

 

 

 

  642

 

 

(1

%)

 

15

%

 

 

  2,145

 

 

 

  1,792

 

 

20

%

Data processing, internet and software

 

 

  373

 

 

 

  357

 

 

 

  342

 

 

4

%

 

9

%

 

 

  1,115

 

 

 

  1,123

 

 

(1

%)

Professional and legal

 

 

  340

 

 

 

  168

 

 

 

  156

 

 

102

%

 

118

%

 

 

  686

 

 

 

  580

 

 

18

%

M&A and strategic initiatives

 

 

  –

 

 

 

  212

 

 

 

  –

 

 

(100

%)

 

0

%

 

 

  514

 

 

 

  –

 

 

0

%

Other operating expenses

 

 

  1,080

 

 

 

  1,140

 

 

 

  1,033

 

 

(5

%)

 

(7

%)

 

 

  3,300

 

 

 

  2,760

 

 

12

%

Total operating expenses

 

 

  6,221

 

 

 

  6,573

 

 

 

  5,345

 

 

(5

%)

 

16

%

 

 

  19,281

 

 

 

  15,097

 

 

28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income before taxes

 

 

  3,551

 

 

 

  2,726

 

 

 

  3,217

 

 

30

%

 

10

%

 

 

  9,002

 

 

 

  8,376

 

 

7

%

Income taxes

 

 

  1,037

 

 

 

  567

 

 

 

  1,121

 

 

83

%

 

(7

%)

 

 

  2,397

 

 

 

  2,754

 

 

(13

%)

Net income

 

$

   2,514

 

 

$

   2,159

 

 

$

   2,096

 

 

16

%

 

20

%

 

$

   6,605

 

 

$

   5,622

 

 

17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

   0.34

 

 

$

   0.33

 

 

$

   0.33

 

 

4

%

 

4

%

 

$

   0.98

 

 

$

   0.90

 

 

9

%

Diluted earnings per share

 

$

   0.34

 

 

$

   0.32

 

 

$

   0.31

 

 

6

%

 

7

%

 

$

   0.94

 

 

$

   0.85

 

 

10

%

Average shares outstanding

 

 

7,361,383

 

 

 

6,604,562

 

 

 

6,384,149

 

 

 

 

 

 

 

6,828,105

 

 

 

6,260,391

 

 

 

Average diluted shares

 

 

7,499,978

 

 

 

6,843,821

 

 

 

6,683,946

 

 

 

 

 

 

 

7,056,646

 

 

 

6,612,719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CORE EARNINGS SUMMARY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months Ended

 

Change %

 

For the nine months ended

 

Change %

Nonrecurring expense

 

9/30/2018

 

6/30/2018

 

9/30/2017

 

QoQ

 

YoY

 

9/30/2018

 

9/30/2017

 

YTDoYTD

Strategic initiative and CEO transition

 

$

  –

 

 

$

  598

 

 

$

  –

 

 

 

 

 

 

$

  900

 

 

$

  –

 

 

 

Total Nonrecurring expense

 

 

  –

 

 

 

  598

 

 

 

  –

 

 

 

 

 

 

 

  900

 

 

 

  –

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonrecurring expense (net of tax)

 

 

  –

 

 

 

  422

 

 

 

  –

 

 

 

 

 

 

 

  635

 

 

 

  –

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core Net income

 

$

   2,514

 

 

$

   2,581

 

 

$

   2,096

 

 

(3

%)

 

20

%

 

$

   7,240

 

 

$

   5,622

 

 

29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic core earnings per share

 

 

  0.34

 

 

 

  0.39

 

 

 

  0.33

 

 

(13

%)

 

4

%

 

 

  1.06

 

 

 

  0.90

 

 

18

%

Diluted core earnings per share

 

 

  0.34

 

 

 

  0.38

 

 

 

  0.31

 

 

(11

%)

 

7

%

 

 

  1.03

 

 

 

  0.85

 

 

21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core ROA

 

 

1.04

%

 

 

1.17

%

 

 

1.00

%

 

 

 

 

 

 

1.06

%

 

 

0.95

%

 

 

Core ROATCE

 

 

10.20

%

 

 

12.58

%

 

 

10.94

%

 

 

 

 

 

 

11.19

%

 

 

10.30

%

 

 

 

 

 

                               

 

 

For the three months Ended

 

Change $

 

Change %

 

 

Average Balance Sheet Items

 

9/30/2018

 

6/30/2018

 

9/30/2017

 

QoQ

 

YoY

 

QoQ

 

YoY

 

 

Total Assets

 

 

  962,254

 

 

 

  887,108

 

 

 

  828,476

 

 

  75,146

 

 

  133,778

 

 

 

8

%

 

 

16

%

 

 

Total Loans

 

 

  758,399

 

 

 

  749,057

 

 

 

  702,327

 

 

  9,342

 

 

  56,072

 

 

 

1

%

 

 

8

%

 

 

Investments

 

 

  15,417

 

 

 

  12,165

 

 

 

  14,018

 

 

  3,252

 

 

  1,399

 

 

 

27

%

 

 

10

%

 

 

Earning Assets

 

 

906,259

 

 

 

840,653

 

 

 

772,019

 

 

65,606

 

 

134,240

 

 

 

8

%

 

 

17

%

 

 

Non-Interest Bearing Deposits

 

 

  349,449

 

 

 

  317,193

 

 

 

  284,174

 

 

  32,256

 

 

  65,275

 

 

 

10

%

 

 

23

%

 

 

Core Deposits

 

 

737,891

 

 

 

680,243

 

 

 

617,080

 

 

57,648

 

 

120,811

 

 

 

8

%

 

 

20

%

 

 

Total Deposits

 

 

841,409

 

 

 

785,047

 

 

 

725,141

 

 

56,362

 

 

116,268

 

 

 

7

%

 

 

16

%

 

 

Borrowings

 

 

  10,954

 

 

 

  16,209

 

 

 

  15,937

 

 

  (5,255

)

 

  (4,983

)

 

 

-32

%

 

 

-31

%

 

 

Tangible Common Equity

 

 

  97,827

 

 

 

  82,247

 

 

 

  76,000

 

 

  15,580

 

 

  21,827

 

 

 

19

%

 

 

29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months Ended

 

Change

 

 

 

 

 

 

 

 

Average Balance Sheet Items

 

9/30/2018

 

9/30/2017

 

$

 

%

 

 

 

 

 

 

 

 

Total Assets

 

 

  910,843

 

 

 

  789,031

 

 

 

  121,812

 

 

15

%

 

 

 

 

 

 

 

 

Total Loans

 

 

  745,851

 

 

 

  683,710

 

 

 

  62,141

 

 

9

%

 

 

 

 

 

 

 

 

Investments

 

 

  13,449

 

 

 

  14,655

 

 

 

  (1,206

)

 

(8

%)

 

 

 

 

 

 

 

 

Earning Assets

 

 

  859,422

 

 

 

  735,816

 

 

 

  123,606

 

 

17

%

 

 

 

 

 

 

 

 

Non-Interest Bearing Deposits

 

 

  323,818

 

 

 

  270,061

 

 

 

  53,757

 

 

20

%

 

 

 

 

 

 

 

 

Core Deposits

 

 

  694,801

 

 

 

  577,050

 

 

 

  117,751

 

 

20

%

 

 

 

 

 

 

 

 

Total Deposits

 

 

  800,857

 

 

 

  679,134

 

 

 

  121,723

 

 

18

%

 

 

 

 

 

 

 

 

Borrowings

 

 

  14,418

 

 

 

  26,806

 

 

 

  (12,388

)

 

(46

%)

 

 

 

 

 

 

 

 

Tangible Common Equity

 

 

  86,489

 

 

 

  73,007

 

 

 

  13,482

 

 

18

%

 

 

 

 

 

 

 

 

 

 

 

 

                               

 

 

At the periods ended

 

Change $

 

Change %

 

 

Balance Sheet

 

9/30/2018

 

6/30/2018

 

9/30/2017

 

QoQ

 

YoY

 

QoQ

 

YoY

 

 

Cash and equivalents

 

 

  92,224

 

 

 

  111,202

 

 

 

  83,252

 

 

  (18,978

)

 

  8,972

 

 

 

(17

%)

 

 

11

%

 

 

Investment securities

 

 

  42,532

 

 

 

  11,652

 

 

 

  13,757

 

 

  30,880

 

 

  28,775

 

 

 

265

%

 

 

209

%

 

 

Other investments

 

 

  3,536

 

 

 

  3,536

 

 

 

  3,199

 

 

  –

 

 

  337

 

 

 

0

%

 

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans

 

 

  329,539

 

 

 

  329,914

 

 

 

  314,087

 

 

  (375

)

 

  15,452

 

 

 

(0

%)

 

 

5

%

 

 

CRE loans

 

 

399,096

 

 

 

357,969

 

 

 

352,827

 

 

41,127

 

 

  46,269

 

 

 

11

%

 

 

13

%

 

 

Construction and land loans

 

 

  40,207

 

 

 

  40,671

 

 

 

  36,516

 

 

  (464

)

 

  3,691

 

 

 

(1

%)

 

 

10

%

 

 

Other loans

 

 

  16,270

 

 

 

  24,778

 

 

 

  15,732

 

 

  (8,508

)

 

  538

 

 

 

(34

%)

 

 

3

%

 

 

Loans

 

 

 785,112

 

 

 

 753,332

 

 

 

 719,162

 

 

 31,780

 

 

  65,950

 

 

 

4

%

 

 

9

%

 

 

Allowance for loan losses

 

 

  10,200

 

 

 

  9,800

 

 

 

  9,000

 

 

  400

 

 

  1,200

 

 

 

4

%

 

 

13

%

 

 

Net loans

 

 

774,912

 

 

 

743,532

 

 

 

710,162

 

 

31,380

 

 

64,750

 

 

 

4

%

 

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premises and equipment, net

 

 

  2,253

 

 

 

  2,428

 

 

 

  2,998

 

 

  (175

)

 

  (745

)

 

 

(7

%)

 

 

(25

%)

 

 

Bank owned life insurance

 

 

  16,756

 

 

 

  16,651

 

 

 

  16,324

 

 

  105

 

 

  432

 

 

 

1

%

 

 

3

%

 

 

Deferred income taxes, net

 

 

  5,205

 

 

 

  5,583

 

 

 

  6,733

 

 

  (378

)

 

  (1,528

)

 

 

(7

%)

 

 

(23

%)

 

 

Core Deposit Intangible

 

 

  405

 

 

 

  419

 

 

 

  460

 

 

  (14

)

 

  (55

)

 

 

(3

%)

 

 

(12

%)

 

 

Goodwill

 

 

  7,350

 

 

 

  7,350

 

 

 

  7,350

 

 

  –

 

 

  –

 

 

 

0

%

 

 

0

%

 

 

Other assets and interest receivable

 

 

  9,435

 

 

 

  9,003

 

 

 

  8,189

 

 

  432

 

 

  1,246

 

 

 

5

%

 

 

15

%

 

 

Total assets

 

 

 954,608

 

 

 

 911,356

 

 

 

 852,424

 

 

43,252

 

 

 102,184

 

 

 

5

%

 

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

  340,941

 

 

 

  326,556

 

 

 

  292,047

 

 

  14,385

 

 

  48,894

 

 

 

4

%

 

 

17

%

 

 

Interest bearing demand deposits

 

 

  24,054

 

 

 

  28,278

 

 

 

  23,956

 

 

  (4,224

)

 

  98

 

 

 

(15

%)

 

 

0

%

 

 

Money market & savings deposits

 

 

  367,539

 

 

 

  354,785

 

 

 

  340,164

 

 

  12,754

 

 

  27,375

 

 

 

4

%

 

 

8

%

 

 

Time deposits

 

 

  93,855

 

 

 

  90,174

 

 

 

  92,456

 

 

  3,681

 

 

  1,399

 

 

 

4

%

 

 

2

%

 

 

Total deposits

 

 

826,389

 

 

 

799,793

 

 

 

748,623

 

 

26,596

 

 

  77,766

 

 

 

3

%

 

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

 

 

 

 

11,500

 

 

 

11,000

 

 

(11,500

)

 

  (11,000

)

 

 

(100

%)

 

 

(100

%)

 

 

Subordinated debentures

 

 

  4,956

 

 

 

  4,951

 

 

 

  4,939

 

 

  5

 

 

  17

 

 

 

0

%

 

 

0

%

 

 

Other liabilities

 

 

  5,036

 

 

 

  3,960

 

 

 

  3,415

 

 

  1,076

 

 

  1,621

 

 

 

27

%

 

 

47

%

 

 

Total liabilities

 

 

836,381

 

 

 

820,204

 

 

 

767,977

 

 

16,177

 

 

  68,404

 

 

 

2

%

 

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

104,062

 

 

 

79,395

 

 

 

76,593

 

 

24,667

 

 

  27,469

 

 

 

31

%

 

 

36

%

 

 

Retained earnings

 

 

  14,407

 

 

 

  11,894

 

 

 

  7,797

 

 

  2,513

 

 

  6,610

 

 

 

21

%

 

 

85

%

 

 

Other comprehensive income

 

 

  (242

)

 

 

  (137

)

 

 

  57

 

 

  (105

)

 

  (299

)

 

 

77

%

 

 

 

 

 

Total shareholder’s equity

 

 

  118,227

 

 

 

  91,152

 

 

 

  84,447

 

 

  27,075

 

 

  33,780

 

 

 

30

%

 

 

40

%

 

 

Total liabilities and equity

 

 

  954,608

 

 

 

  911,356

 

 

 

  852,424

 

 

  43,252

 

 

  102,184

 

 

 

5

%

 

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per common share

 

 

  13.87

 

 

 

  12.49

 

 

 

  12.01

 

 

 

 

 

 

 

11

%

 

 

16

%

 

 

Total shares outstanding

 

 

7,974,856

 

 

 

6,691,664

 

 

 

6,394,963

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                               

 

 

For the three months ended

 

For the nine months ended

 

 

 

 

 

 

Performance Ratios

 

9/30/2018

 

6/30/2018

 

9/30/2017

 

9/30/2018

 

9/30/2017

 

 

 

 

 

 

Return on average assets

 

 

1.04

%

 

 

0.98

%

 

 

1.00

%

 

0.97

%

 

0.95

%

 

 

 

 

 

 

Return on average tangible common equity

 

 

10.20

%

 

 

10.53

%

 

 

10.94

%

 

10.21

%

 

10.30

%

 

 

 

 

 

 

Efficiency ratio

 

 

61.19

%

 

 

69.26

%

 

 

60.34

%

 

66.19

%

 

59.01

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

4.05

%

 

 

4.10

%

 

 

4.15

%

 

4.09

%

 

4.23

%

 

 

 

 

 

 

Average loan yield

 

 

5.15

%

 

 

5.03

%

 

 

4.94

%

 

5.08

%

 

4.87

%

 

 

 

 

 

 

Average total deposit rate

 

 

0.57

%

 

 

0.51

%

 

 

0.39

%

 

0.51

%

 

0.33

%

 

 

 

 

 

 

Average borrowing rate

 

 

5.43

%

 

 

5.18

%

 

 

5.17

%

 

5.25

%

 

2.54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total loans to total deposits

 

 

90.0

%

 

 

95.4

%

 

 

96.9

%

 

93.0

%

 

100.7

%

 

 

 

 

 

 

Average C&I loans to total loans

 

 

42.6

%

 

 

43.9

%

 

 

43.0

%

 

43.4

%

 

41.4

%

 

 

 

 

 

 

Average non-interest bearing deposits to total deposits

 

41.5

%

 

 

40.4

%

 

 

39.2

%

 

40.4

%

 

39.8

%

 

 

 

 

 

 

Average core deposits to total deposits

 

 

87.7

%

 

 

86.7

%

 

 

85.1

%

 

86.8

%

 

85.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At the periods ended

 

 

 

 

 

 

 

 

 

 

Capital Ratios – Bank

 

9/30/2018

 

6/30/2018

 

9/30/2017

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage ratio

 

 

11.26

%

 

 

10.56

%

 

 

10.58

%

 

 

 

 

 

 

 

 

 

 

Common equity tier 1 capital ratio

 

 

11.61

%

 

 

10.65

%

 

 

10.14

%

 

 

 

 

 

 

 

 

 

 

Tier 1 risk-based capital ratio

 

 

11.61

%

 

 

10.65

%

 

 

10.14

%

 

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

 

 

13.27

%

 

 

12.35

%

 

 

11.79

%

 

 

 

 

 

 

 

 

 

 

 

 

 

                               

 

 

At the periods ended

 

 

 

 

 

 

 

 

 

 

Non-Performing Assets

 

9/30/2018

 

6/30/2018

 

9/30/2017

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans

 

$

  1,754

 

 

$

  2,525

 

 

$

  –

 

 

 

 

 

 

 

 

 

 

 

Restructured Loans

 

 

  969

 

 

 

  1,009

 

 

 

  1,015

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans (NPL)

 

 

  2,723

 

 

 

  3,534

 

 

 

  1,015

 

 

 

 

 

 

 

 

 

 

 

Other Real Estate Owned

 

 

  –

 

 

 

  –

 

 

 

  –

 

 

 

 

 

 

 

 

 

 

 

Total non-performing assets (NPA)

 

$

  2,723

 

 

$

  3,534

 

 

$

  1,015

 

 

 

 

 

 

 

 

 

 

 

Quarterly Net (Charge-offs)/Recoveries

 

$

  3

 

 

$

  9

 

 

$

  4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NPAs / Assets %

 

 

0.29

%

 

 

0.39

%

 

 

0.12

%

 

 

 

 

 

 

 

 

 

 

NPAs / Loans and OREO %

 

 

0.35

%

 

 

0.47

%

 

 

0.14

%

 

 

 

 

 

 

 

 

 

 

Loan Loss Reserves / Loans (%)

 

 

1.30

%

 

 

1.30

%

 

 

1.25

%

 

 

 

 

 

 

 

 

 

 

Loan Loss Reserves / NPLs (%)

 

 

375

%

 

 

277

%

 

 

887

%

 

 

                           

 

CALB new 5 (2) (1).jpg

Source: California BanCorp