Exhibit 99.1
California BanCorp Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2021
Oakland, CA – October 28, 2021 – California BanCorp (NASDAQ: CALB), whose subsidiary is California Bank of Commerce, announced today its financial results for the third quarter and nine months ended September 30, 2021.
The Company reported net income of $3.2 million for the third quarter of 2021, representing a decrease of $946,000, or 23%, compared to $4.2 million for the second quarter of 2021 and an increase of $2.7 million, or 550%, compared to $495,000 in the third quarter of 2020. For the nine months ended September 30, 2021, net income was $10.2 million which represented an increase of $7.7 million, or 305%, compared to $2.5 million for the same period in 2020.
Diluted earnings per share of $0.39 for the third quarter of 2021 compared to $0.50 for the second quarter of 2021 and $0.06 in the third quarter of 2020. For the nine months ended September 30, 2021, diluted earnings per share of $1.23 compared to $0.31 for the same period in 2020.
“We continued to execute well on our growth strategies in the third quarter and generate quality balance sheet growth, higher revenue, and an increase in our core earnings power,” said Steven Shelton, President and CEO of California BanCorp. “The diverse commercial banking platform we have built provides us with many sources of growth and continues to produce consistent increases in core loans and deposits. While C&I loan demand was lower this quarter, we continued to have strong production of commercial real estate loans, which helped drive 16% annualized growth in total loans, excluding PPP loans. We continue to steadily add new commercial clients, which is driving strong growth in deposits and loan commitments, although utilization rates on commercial lines of credit remain under 30% and well below historical levels. As of September 30, 2021, we had $485 million of unfunded commitments. As utilization rates return to more normalized levels in the future, we will see an additional catalyst for loan growth. Our loan pipeline remains consistently healthy and we expect to deliver another strong quarter to end 2021 driven by continued loan growth, higher revenue, and more operating leverage.”
“Our strong deposit growth resulted in excess liquidity that negatively impacted our net interest margin in the third quarter,” said Thomas A. Sa, Senior Executive Vice President, Chief Financial Officer and Chief Operating Officer of California BanCorp. “Going forward, we plan to redeploy more of our excess liquidity into the investment securities portfolio to help drive further increases in net interest income. During the third quarter, we also completed a $35 million subordinated debt offering that provides us with additional capital to support our continued balance sheet growth, which will enable us to continue realizing more operating leverage from the infrastructure we have built and further improve our level of profitability in the future.”
Financial Highlights:
Profitability - three months ended September 30, 2021 compared to June 30, 2021
| • | Net income of $3.2 million and $0.39 per diluted share, compared to $4.2 million and $0.50 per diluted share, respectively. |
| • | Revenue of $15.1 million increased $601,000, or 4%, compared to $14.5 million for the second quarter of 2021. |
| • | Net fees from Paycheck Protection Loans (“PPP”) loans contributed $1.6 million to net interest income compared to $1.7 million for the second quarter of 2021. |
| • | Provision for loan losses increased $1.4 million, primarily due to a release in reserves in the second quarter of $1.1 million due to our continued assessment of qualitative reserves regarding the general macroeconomic changes related to COVID-19 as it pertains to our overall loan portfolio. The provision for loan losses in the third quarter of $300,000 was a result of growth in the loan portfolio. |
| • | Non-interest expense, excluding capitalized loan origination costs, of $11.7 million increased $658,000, or 6%, compared to $11.1 million for the second quarter of 2021 primarily as a result of increased salary related benefits combined with the impact of the current competitive labor market. |
Profitability - nine months ended September 30, 2021 compared to September 30, 2020
| • | Net income of $10.2 million and $1.23 per diluted share, compared to $2.5 million and $0.31 per diluted share, respectively. |
| • | Revenue of $43.9 million increased $8.7 million, or 25%, compared to $35.2 million in the prior year. |
| • | Net fees from PPP loans contributed $4.8 million to net interest income compared to $1.7 million in the prior year. |
| • | Provision for loan losses decreased $4.7 million primarily due to a charge-off recognized in the second quarter of 2020 related to a legacy problem loan as well as our continued assessment of qualitative reserves regarding the general macroeconomic changes related to COVID-19 as it pertains to our overall loan portfolio. |
| • | Non-interest expense, excluding capitalized loan origination costs, of $34.3 million compared to $34.1 million for the same period in the prior year. |
Financial Position – September 30, 2021 compared to June 30, 2021
| • | Total assets increased by $180.0 million, or 10%, to $2.05 billion. |
| • | Total gross loans decreased by $50.7 million, or 4% to $1.30 billion. Excluding the impact of PPP loans forgiven by the SBA, total gross loans increased during the third quarter by $46.4 million, or 4%, to $1.20 billion. |
| • | Total deposits increased by $62.3 million, or 4% to $1.74 billion. |
| • | Borrowing arrangements increased by $113.8 million primarily due to a sub-debt issuance of $35.0 million and increased borrowings under the Federal Reserve Paycheck Protection Program Liquidity Facility (“PPPLF”). |
| • | Capital ratios remained healthy with a Tier 1 leverage ratio of 7.29%, Tier 1 capital ratio of 9.17% and total risk-based capital ratio of 13.92%. |
Net Interest Income and Margin:
Net interest income for the quarter ended September 30, 2021 was $13.8 million, an increase of $255,000, or 2%, over $13.6 million for the three months ended June 30, 2021, and an increase of $2.7 million, or 24%, over $11.2 million for the quarter ended September 30, 2020. The increase in net interest income compared to the second quarter of 2021 was primarily attributable to a higher yield on loans as a result of new loan originations replacing the PPP loans that were forgiven during the quarter, combined with growth in other earning assets due to excess liquidity partially offset by an increase in borrowing arrangements. Compared to the third quarter of 2020, the increase in net interest income resulted from growth in earning assets and amortization of fees received on PPP loans offset, in part, by the decline in short-term interest rates.
Net interest income for the nine months ended September 30, 2021 was $40.8 million, an increase of $8.6 million, or 27% over $32.2 million for the nine months ended September 30, 2020. The increase in net interest income was primarily attributable to an increase in interest income as the result of growth in earning assets and amortization of fees received on PPP loans offset, in part, by a decline in short-term interest rates and higher liquidity.
The Company’s net interest margin for the third quarter of 2021 was 2.87% compared to 2.98% for the second quarter of 2021 and 2.41% for the third quarter of 2020. The decrease in margin compared to the prior quarter was primarily due to excess liquidity and a decline in accelerated deferred fees on PPP loans granted forgiveness by the SBA. The increase in margin compared to the third quarter one year ago was primarily due to higher recognition of accelerated deferred fees on PPP loans granted forgiveness by the SBA, offset in part by a decrease in short-term interest rates.
The Company’s net interest margin for the nine months ended September 30, 2021 was 2.92% compared to 2.80% for the same period in 2020. The increase in margin compared to prior year was primarily due to an increase in fees recognized on PPP loans, partially offset by a decrease in short-term interest rates and higher liquidity.
Non-Interest Income:
The Company’s non-interest income for the quarters ended September 30, 2021, June 30, 2021, and September 30, 2020 was $1.3 million, $956,000 and $1.0 million, respectively. The increase in noninterest income from the prior quarter and the third quarter of 2020 was primarily due to an increase in service charges and loan related fees.
For the nine months ended September 30, 2021, non-interest income of $3.2 million compared to $3.1 million for the same period of 2020. The increase in non-interest income from prior year was the result of an increase in service charges and loan related fees.
Net interest income and non-interest income comprised total revenue of $15.1 million, $14.5 million, and $12.2 million for the quarters ended September 30, 2021, June 30, 2021, and September 30, 2020, respectively. Total revenue for the nine months ended September 30, 2021 and 2020 was $43.9 million and $35.2 million, respectively.
Non-Interest Expense:
The Company’s non-interest expense for the quarters ended September 30, 2021, June 30, 2021, and September 30, 2020 was $10.5 million, $9.8 million, and $10.5 million, respectively. The increase in non-interest expense compared to the second quarter of 2021 was primarily a result of increased salary related benefits, including production-based incentive compensation, combined with the impact of the current competitive labor market. Excluding capitalized loan origination costs, non-interest expenses for the third and second quarters of 2021 and the third quarter of 2020 were $11.7 million, $11.1 million, and $11.5 million, respectively.
Non-interest expense of $30.4 million for the nine months ended September 30, 2021 compared to $27.4 million for the same period of 2020. Excluding capitalized loan origination costs, non-interest expense was $34.3 million for the nine months ended September 30, 2021 and $34.1 million for the same period in 2020 which reflects the Company’s continued focus on managing expenses and leveraging the recent investment in infrastructure to support the continued growth of the Company.
The Company’s efficiency ratio, the ratio of non-interest expense to revenues, was 69.42%, 67.63%, and 86.32% for the quarters ended September 30, 2021, June 30, 2021, and September 30, 2020, respectively. For the nine months ended September 30, 2021 and 2020, the Company’s efficiency ratio was 69.25% and 77.71%, respectively.
Balance Sheet:
Total assets of $2.05 billion as of September 30, 2021, represented an increase of $180.0 million, or 10%, compared to $1.87 billion at June 30, 2021 and an increase of $76.3 million, or 4%, compared to $1.97 billion at September 30, 2020. The increase in total assets was primarily due to excess liquidity, partially offset by a decrease in loan balances.
Total gross loans decreased by $50.7 million, or 4%, to $1.30 billion at September 30, 2021 compared to $1.35 billion at June 30, 2021 and decreased by $53.2 million, or 4%, compared to $1.36 billion at September 30, 2020. During the third quarter of 2021, SBA loans decreased by $97.6 million primarily due to PPP loan forgiveness. Partially offsetting this decrease, the real estate other portfolio increased by $47.8 million due to organic growth.
Year-over-year, the decrease in the loan portfolio was primarily due to a decrease in SBA loans of $266.8 million as a result of loan forgiveness offset by increases in commercial loans and real estate other loans of $48.8 million and $124.7 million, respectively. The Company also purchased two additional portfolios of residential solar loans totaling approximately $35.5 million.
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 $393.8 million of those balances have been granted forgiveness by the SBA as of September 30, 2021.
Total deposits increased by $62.3 million, or 4%, to $1.74 billion at September 30, 2021, from $1.68 billion at June 30, 2021 and $304.8 million, or 21%, over $1.44 billion at September 30, 2020. The increase in total deposits from the end of the second quarter of 2021 was primarily due to the growth in money market and savings deposits of $75.7 million, partially offset by a decrease in time deposits of $15.9 million.
Compared to the same period last year, deposit growth was primarily concentrated in noninterest-bearing demand and money market deposits as the result of funding PPP loans combined with organic growth. Non-interest bearing deposits, consisting primarily of commercial business operating accounts, represented 45.4% of total deposits at September 30, 2021, compared to 47.1% at June 30, 2021 and 44.1% at September 30. 2020.
As of September 30, 2021, the Company had borrowing arrangements, excluding junior subordinated debt securities, of $79.5 million compared to no borrowings at June 30, 2021 and $352.7 million as of September 30, 2020. The increase in borrowings during the third quarter of 2021 was comprised primarily of PPPLF activity.
Asset Quality:
The provision for loan losses increased to $300,000 for the third quarter of 2021 compared to $(1.1) million for the second quarter of 2021 and decreased from $850,000 for the third quarter of 2020. Net loan recoveries in the third quarter of 2021 were $31,000, or 0.00% of gross loans, compared to net charge-offs of $237,000, or 0.02% of gross loans, in the second quarter of 2021 and net recoveries of $11,000, or 0.00% of gross loans, in the third quarter 2020.
Non-performing assets (“NPAs”) to total assets of 0.06% at September 30, 2021 compared to 0.07% at June 30, 2021 and 0.03% at September 30, 2020, with non-performing loans of $1.2 million, $1.2 million, and $580,000 respectively, on those dates. The increase in NPAs at September 30, 2021 and June 30, 2021 compared to the September 30, 2020 primarily related to one commercial real estate loan that is well secured and not expected to result in a loss for the Company.
The allowance for loan losses increased by $331,000 to $13.6 million, or 1.04% of total loans, at September 30, 2021, compared to $13.2 million, or 0.98% of total loans, at June 30, 2021 and increased by $186,000 compared to $13.4 million, or 0.99% of total loans, at September 30, 2020. The increase in the allowance as a percentage of total loans in the quarter ended September 30, 2021 compared to the quarters ended June 30, 2021 and September 30, 2020 reflects the Company’s continued assessment of the qualitative reserves in response to general macroeconomic impacts related to COVID-19 combined with continued strong credit quality.
Capital Adequacy:
At September 30, 2021, shareholders’ equity totaled $147.2 million compared to $143.7 million at June 30, 2021 and $134.6 million one year ago. As a result, the Company’s total risk-based capital ratio, Tier 1 capital ratio and Tier 1 leverage ratio of 13.92%, 9.17%, and 7.29%, respectively, were all substantially 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, 2020 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 September 30, 2021, which we expect to file with the SEC during the fourth quarter of 2021, 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.
FINANCIAL TABLES FOLLOW
CALIFORNIA BANCORP AND SUBSIDIARY
SELECTED FINANCIAL INFORMATION (UNAUDITED) - PROFITABILITY
(Dollars in Thousands, Except Per Share Data)
| Change | Change | |||||||||||||||||||||||||||||||
| QUARTERLY HIGHLIGHTS: | Q3 2021 | Q2 2021 | $ | % | Q3 2020 | $ | % | |||||||||||||||||||||||||
| Interest income |
$ | 15,539 | $ | 15,179 | $ | 360 | 2 | % | $ | 13,188 | $ | 2,351 | 18 | % | ||||||||||||||||||
| Interest expense |
1,698 | 1,593 | 105 | 7 | % | 2,000 | (302 | ) | -15 | % | ||||||||||||||||||||||
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| Net interest income |
13,841 | 13,586 | 255 | 2 | % | 11,188 | 2,653 | 24 | % | |||||||||||||||||||||||
| Provision for loan losses |
300 | (1,100 | ) | 1,400 | -127 | % | 850 | (550 | ) | -65 | % | |||||||||||||||||||||
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| Net interest income after provision provision for loan losses |
13,541 | 14,686 | (1,145 | ) | -8 | % | 10,338 | 3,203 | 31 | % | ||||||||||||||||||||||
| Non-interest income |
1,302 | 956 | 346 | 36 | % | 1,028 | 274 | 27 | % | |||||||||||||||||||||||
| Non-interest expense |
10,513 | 9,835 | 678 | 7 | % | 10,545 | (32 | ) | 0 | % | ||||||||||||||||||||||
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| Income before income taxes |
4,330 | 5,807 | (1,477 | ) | -25 | % | 821 | 3,509 | 427 | % | ||||||||||||||||||||||
| Income tax expense |
1,114 | 1,645 | (531 | ) | -32 | % | 326 | 788 | 242 | % | ||||||||||||||||||||||
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| Net income |
$ | 3,216 | $ | 4,162 | $ | (946 | ) | -23 | % | $ | 495 | $ | 2,721 | 550 | % | |||||||||||||||||
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| Diluted earnings per share |
$ | 0.39 | $ | 0.50 | $ | (0.11 | ) | -22 | % | $ | 0.06 | $ | 0.33 | 550 | % | |||||||||||||||||
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| Net interest margin |
2.87 | % | 2.98 | % | -11 Basis Points | 2.41 | % | +46 Basis Points | ||||||||||||||||||||||||
| Efficiency ratio |
69.42 | % | 67.63 | % | +179 Basis Points | 86.32 | % | -1,690 Basis Points | ||||||||||||||||||||||||
| Change | ||||||||||||||||
| YEAR-TO-DATE HIGHLIGHTS: | Q3 2021 | Q3 2020 | $ | % | ||||||||||||
| Interest income |
$ | 45,750 | $ | 38,271 | $ | 7,479 | 20 | % | ||||||||
| Interest expense |
4,987 | 6,117 | (1,130 | ) | -18 | % | ||||||||||
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| Net interest income |
40,763 | 32,154 | 8,609 | 27 | % | |||||||||||
| Provision for credit losses |
(500 | ) | 4,180 | (4,680 | ) | -112 | % | |||||||||
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| Net interest income after provision for credit losses |
41,263 | 27,974 | 13,289 | 48 | % | |||||||||||
| Non-interest income |
3,179 | 3,096 | 83 | 3 | % | |||||||||||
| Non-interest expense |
30,428 | 27,393 | 3,035 | 11 | % | |||||||||||
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| Income before income taxes |
14,014 | 3,677 | 10,337 | 281 | % | |||||||||||
| Income tax expense |
3,827 | 1,159 | 2,668 | 230 | % | |||||||||||
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| Net income |
$ | 10,187 | $ | 2,518 | $ | 7,669 | 305 | % | ||||||||
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| Diluted earnings per share |
$ | 1.23 | $ | 0.31 | $ | 0.92 | 297 | % | ||||||||
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| Net interest margin |
2.92 | % | 2.80 | % | +12 Basis Points | |||||||||||
| Efficiency ratio |
69.25 | % | 77.71 | % | -846 Basis Points | |||||||||||
CALIFORNIA BANCORP AND SUBSIDIARY
SELECTED FINANCIAL INFORMATION (UNAUDITED) - FINANCIAL POSITION
(Dollars in Thousands, Except Per Share Data)
| Change | Change | |||||||||||||||||||||||||||
| PERIOD-END HIGHLIGHTS: | Q3 2021 | Q2 2021 | $ | % | Q3 2020 | $ | % | |||||||||||||||||||||
| Total assets |
$ | 2,049,079 | $ | 1,869,063 | $ | 180,016 | 10 | % | $ | 1,972,751 | $ | 76,328 | 4 | % | ||||||||||||||
| Gross loans |
1,301,972 | 1,352,639 | (50,667 | ) | -4 | % | 1,355,164 | (53,192 | ) | -4 | % | |||||||||||||||||
| Deposits |
1,742,054 | 1,679,772 | 62,282 | 4 | % | 1,437,232 | 304,822 | 21 | % | |||||||||||||||||||
| Tangible equity |
139,715 | 136,207 | 3,508 | 3 | % | 127,031 | 12,684 | 10 | % | |||||||||||||||||||
| Tangible book value per share |
$ | 16.93 | $ | 16.55 | $ | 0.38 | 2 | % | $ | 15.59 | $ | 1.35 | 9 | % | ||||||||||||||
| Tangible equity / total assets |
6.82 | % | 7.29 | % | -47 Basis Points | 6.44 | % | +38 Basis Points | ||||||||||||||||||||
| Gross loans / total deposits |
74.74 | % | 80.53 | % | -579 Basis Points | 94.29 | % | -1,955 Basis Points | ||||||||||||||||||||
| Noninterest-bearing deposits / total deposits |
45.39 | % | 47.12 | % | -174 Basis Points | 44.09 | % | +130 Basis Points | ||||||||||||||||||||
| Change | Change | |||||||||||||||||||||||||||
| QUARTERLY AVERAGE HIGHLIGHTS: | Q3 2021 | Q2 2021 | $ | % | Q3 2020 | $ | % | |||||||||||||||||||||
| Total assets |
$ | 1,985,894 | $ | 1,909,558 | $ | 76,336 | 4 | % | $ | 1,923,001 | $ | 62,893 | 3 | % | ||||||||||||||
| Total earning assets |
1,912,697 | 1,829,980 | 82,717 | 5 | % | 1,843,072 | 69,625 | 4 | % | |||||||||||||||||||
| Gross loans |
1,316,080 | 1,415,729 | (99,649 | ) | -7 | % | 1,313,092 | 2,988 | 0 | % | ||||||||||||||||||
| Deposits |
1,718,525 | 1,607,847 | 110,678 | 7 | % | 1,397,280 | 321,245 | 23 | % | |||||||||||||||||||
| Tangible equity |
138,833 | 134,379 | 4,454 | 3 | % | 126,670 | 12,163 | 10 | % | |||||||||||||||||||
| Tangible equity / total assets |
6.99 | % | 7.04 | % | -5 Basis Points | 6.59 | % | +40 Basis Points | ||||||||||||||||||||
| Gross loans / total deposits |
76.58 | % | 88.05 | % | -1,147 Basis Points | 93.97 | % | -1,739 Basis Points | ||||||||||||||||||||
| Noninterest-bearing deposits / total deposits |
45.17 | % | 45.28 | % | -11 Basis Points | 43.60 | % | +157 Basis Points | ||||||||||||||||||||
| Change | ||||||||||||||||
| YEAR-TO-DATE AVERAGE HIGHLIGHTS: | Q3 2021 | Q3 2020 | $ | % | ||||||||||||
| Total assets |
$ | 1,940,035 | $ | 1,619,319 | $ | 320,716 | 20 | % | ||||||||
| Total earning assets |
1,864,166 | 1,535,251 | 328,915 | 21 | % | |||||||||||
| Gross loans |
1,382,074 | 1,166,829 | 215,245 | 18 | % | |||||||||||
| Deposits |
1,632,257 | 1,238,765 | 393,492 | 32 | % | |||||||||||
| Tangible equity |
134,771 | 125,401 | 9,370 | 7 | % | |||||||||||
| Tangible equity / total assets |
6.95 | % | 7.74 | % | -80 Basis Points | |||||||||||
| Gross loans / total deposits |
84.67 | % | 94.19 | % | -952 Basis Points | |||||||||||
| Noninterest-bearing deposits / total deposits |
44.82 | % | 42.75 | % | +207 Basis Points | |||||||||||
CALIFORNIA BANCORP AND SUBSIDIARY
SELECTED INTERIM FINANCIAL INFORMATION (UNAUDITED) - ASSET QUALITY
(Dollars in Thousands)
| ALLOWANCE FOR LOAN LOSSES: | 09/30/21 | 06/30/21 | 03/31/21 | 12/31/20 | 09/30/20 | |||||||||||||||
| Balance, beginning of period |
$ | 13,240 | $ | 14,577 | $ | 14,111 | $ | 13,385 | $ | 12,524 | ||||||||||
| Provision for loan losses, quarterly |
300 | (1,100 | ) | 300 | 700 | 850 | ||||||||||||||
| Charge-offs, quarterly |
— | (278 | ) | — | — | — | ||||||||||||||
| Recoveries, quarterly |
31 | 41 | 166 | 26 | 11 | |||||||||||||||
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|
|||||||||||
| Balance, end of period |
$ | 13,571 | $ | 13,240 | $ | 14,577 | $ | 14,111 | $ | 13,385 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| NONPERFORMING ASSETS: | 09/30/21 | 06/30/21 | 03/31/21 | 12/31/20 | 09/30/20 | |||||||||||||||
| Loans accounted for on a non-accrual basis |
$ | 1,233 | $ | 1,234 | $ | 234 | $ | 234 | $ | 580 | ||||||||||
| Loans with principal or interest contractually past due 90 days or more and still accruing interest |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Nonperforming loans |
$ | 1,233 | $ | 1,234 | $ | 234 | $ | 234 | $ | 580 | ||||||||||
| Other real estate owned |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Nonperforming assets |
$ | 1,233 | $ | 1,234 | $ | 234 | $ | 234 | $ | 580 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Loans restructured and in compliance with modified terms |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Nonperforming assets and restructured loans |
$ | 1,233 | $ | 1,234 | $ | 234 | $ | 234 | $ | 580 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Nonperforming loans by asset type: |
||||||||||||||||||||
| Commercial |
$ | — | $ | — | $ | — | $ | — | $ | 346 | ||||||||||
| Real estate other |
1,000 | 1,000 | — | — | — | |||||||||||||||
| Real estate construction and land |
— | — | — | — | — | |||||||||||||||
| SBA |
233 | 234 | 234 | 234 | 234 | |||||||||||||||
| Other |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Nonperforming loans |
$ | 1,233 | $ | 1,234 | $ | 234 | $ | 234 | $ | 580 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| ASSET QUALITY: | 09/30/21 | 06/30/21 | 03/31/21 | 12/31/20 | 09/30/20 | |||||||||||||||
| Allowance for loan losses / gross loans |
1.04 | % | 0.98 | % | 0.99 | % | 1.03 | % | 0.99 | % | ||||||||||
| Allowance for loan losses / nonperforming loans |
1100.65 | % | 1072.93 | % | 6229.49 | % | 6030.34 | % | 2307.76 | % | ||||||||||
| Nonperforming assets / total assets |
0.06 | % | 0.07 | % | 0.01 | % | 0.01 | % | 0.03 | % | ||||||||||
| Nonperforming loans / gross loans |
0.09 | % | 0.09 | % | 0.02 | % | 0.02 | % | 0.04 | % | ||||||||||
| Net quarterly charge-offs / gross loans |
0.00 | % | 0.02 | % | -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 | Nine months ended | |||||||||||||||||||
| 09/30/21 | 06/30/21 | 09/30/20 | 09/30/21 | 09/30/20 | ||||||||||||||||
| INTEREST INCOME |
||||||||||||||||||||
| Loans |
$ | 14,870 | $ | 14,703 | $ | 12,849 | $ | 44,157 | $ | 37,096 | ||||||||||
| Federal funds sold |
199 | 84 | 117 | 371 | 554 | |||||||||||||||
| Investment securities |
470 | 392 | 222 | 1,222 | 621 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total interest income |
15,539 | 15,179 | 13,188 | 45,750 | 38,271 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| INTEREST EXPENSE |
||||||||||||||||||||
| Deposits |
1,152 | 1,138 | 1,467 | 3,481 | 4,981 | |||||||||||||||
| Other |
546 | 455 | 533 | 1,506 | 1,136 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total interest expense |
1,698 | 1,593 | 2,000 | 4,987 | 6,117 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net interest income |
13,841 | 13,586 | 11,188 | 40,763 | 32,154 | |||||||||||||||
| Provision for loan losses |
300 | (1,100 | ) | 850 | (500 | ) | 4,180 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net interest income after provision for loan losses |
13,541 | 14,686 | 10,338 | 41,263 | 27,974 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| NON-INTEREST INCOME |
||||||||||||||||||||
| Service charges and other fees |
905 | 638 | 779 | 2,184 | 2,287 | |||||||||||||||
| Other non-interest income |
397 | 318 | 249 | 995 | 809 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total non-interest income |
1,302 | 956 | 1,028 | 3,179 | 3,096 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| NON-INTEREST EXPENSE |
||||||||||||||||||||
| Salaries and benefits |
6,920 | 6,374 | 6,452 | 19,661 | 15,051 | |||||||||||||||
| Premises and equipment |
1,372 | 1,209 | 1,359 | 3,778 | 3,630 | |||||||||||||||
| Other |
2,221 | 2,252 | 2,734 | 6,989 | 8,712 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total non-interest expense |
10,513 | 9,835 | 10,545 | 30,428 | 27,393 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income before income taxes |
4,330 | 5,807 | 821 | 14,014 | 3,677 | |||||||||||||||
| Income taxes |
1,114 | 1,645 | 326 | 3,827 | 1,159 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| NET INCOME |
$ | 3,216 | $ | 4,162 | $ | 495 | $ | 10,187 | $ | 2,518 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| EARNINGS PER SHARE |
||||||||||||||||||||
| Basic earnings per share |
$ | 0.39 | $ | 0.51 | $ | 0.06 | $ | 1.24 | $ | 0.31 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Diluted earnings per share |
$ | 0.39 | $ | 0.50 | $ | 0.06 | $ | 1.23 | $ | 0.31 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Average common shares outstanding |
8,244,154 | 8,209,678 | 8,141,807 | 8,211,907 | 8,124,387 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Average common and equivalent shares outstanding |
8,310,799 | 8,295,278 | 8,169,334 | 8,283,683 | 8,159,521 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| PERFORMANCE MEASURES |
||||||||||||||||||||
| Return on average assets |
0.64 | % | 0.87 | % | 0.10 | % | 0.70 | % | 0.21 | % | ||||||||||
| Return on average equity |
8.72 | % | 11.76 | % | 1.47 | % | 9.57 | % | 2.53 | % | ||||||||||
| Return on average tangible equity |
9.19 | % | 12.42 | % | 1.55 | % | 10.11 | % | 2.68 | % | ||||||||||
| Efficiency ratio |
69.42 | % | 67.63 | % | 86.32 | % | 69.25 | % | 77.71 | % | ||||||||||
CALIFORNIA BANCORP AND SUBSIDIARY
INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
| 09/30/21 | 06/30/21 | 03/31/21 | 12/31/20 | 09/30/20 | ||||||||||||||||
| ASSETS |
||||||||||||||||||||
| Cash and due from banks |
$ | 22,424 | $ | 26,159 | $ | 18,475 | $ | 22,485 | $ | 23,339 | ||||||||||
| Federal funds sold |
578,626 | 366,347 | 342,305 | 396,032 | 480,555 | |||||||||||||||
| Investment securities |
82,108 | 61,142 | 58,105 | 55,093 | 50,906 | |||||||||||||||
| Loans: |
||||||||||||||||||||
| Commercial |
428,169 | 425,643 | 439,044 | 414,548 | 379,400 | |||||||||||||||
| Real estate other |
664,202 | 616,451 | 573,520 | 550,690 | 539,541 | |||||||||||||||
| Real estate construction and land |
41,312 | 41,558 | 45,550 | 37,193 | 36,596 | |||||||||||||||
| SBA |
107,096 | 204,734 | 364,273 | 317,564 | 373,921 | |||||||||||||||
| Other |
61,193 | 64,253 | 47,926 | 49,075 | 25,706 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Loans, gross |
1,301,972 | 1,352,639 | 1,470,313 | 1,369,070 | 1,355,164 | |||||||||||||||
| Unearned fee income |
760 | (629 | ) | (1,569 | ) | 523 | (1,054 | ) | ||||||||||||
| Allowance for loan losses |
(13,571 | ) | (13,240 | ) | (14,577 | ) | (14,111 | ) | (13,385 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Loans, net |
1,289,161 | 1,338,770 | 1,454,167 | 1,355,482 | 1,340,725 | |||||||||||||||
| Premises and equipment, net |
4,227 | 5,089 | 5,452 | 5,778 | 5,933 | |||||||||||||||
| Bank owned life insurance |
24,247 | 24,085 | 23,920 | 23,718 | 23,577 | |||||||||||||||
| Goodwill and core deposit intangible |
7,524 | 7,534 | 7,544 | 7,554 | 7,564 | |||||||||||||||
| Accrued interest receivable and other assets |
40,762 | 39,937 | 37,620 | 39,637 | 40,152 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total assets |
$ | 2,049,079 | $ | 1,869,063 | $ | 1,947,588 | $ | 1,905,779 | $ | 1,972,751 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| LIABILITIES |
||||||||||||||||||||
| Deposits: |
||||||||||||||||||||
| Demand noninterest-bearing |
$ | 790,646 | $ | 791,580 | $ | 742,574 | $ | 673,100 | $ | 633,726 | ||||||||||
| Demand interest-bearing |
39,679 | 36,268 | 33,022 | 34,869 | 32,680 | |||||||||||||||
| Money market and savings |
750,112 | 674,390 | 670,517 | 623,603 | 582,953 | |||||||||||||||
| Time |
161,617 | 177,534 | 183,602 | 200,634 | 187,873 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total deposits |
1,742,054 | 1,679,772 | 1,629,715 | 1,532,206 | 1,437,232 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Junior subordinated debt securities |
59,009 | 24,745 | 24,729 | 24,994 | 24,990 | |||||||||||||||
| Other borrowings |
79,536 | — | 134,819 | 189,043 | 352,703 | |||||||||||||||
| Accrued interest payable and other liabilities |
21,241 | 20,805 | 19,147 | 23,126 | 23,231 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total liabilities |
1,901,840 | 1,725,322 | 1,808,410 | 1,769,369 | 1,838,156 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| SHAREHOLDERS’ EQUITY |
||||||||||||||||||||
| Common stock |
109,009 | 108,417 | 108,430 | 107,948 | 107,776 | |||||||||||||||
| Retained earnings |
38,008 | 34,792 | 30,630 | 27,821 | 26,036 | |||||||||||||||
| Accumulated other comprehensive (loss) |
222 | 532 | 118 | 641 | 783 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total shareholders’ equity |
147,239 | 143,741 | 139,178 | 136,410 | 134,595 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total liabilities and shareholders’ equity |
$ | 2,049,079 | $ | 1,869,063 | $ | 1,947,588 | $ | 1,905,779 | $ | 1,972,751 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| CAPITAL ADEQUACY |
||||||||||||||||||||
| Tier I leverage ratio |
7.29 | % | 7.53 | % | 7.46 | % | 7.49 | % | 7.84 | % | ||||||||||
| Tier I risk-based capital ratio |
9.17 | % | 9.35 | % | 9.47 | % | 10.11 | % | 10.57 | % | ||||||||||
| Total risk-based capital ratio |
13.92 | % | 11.93 | % | 12.34 | % | 13.22 | % | 13.80 | % | ||||||||||
| Total equity/ total assets |
7.19 | % | 7.69 | % | 7.15 | % | 7.16 | % | 6.82 | % | ||||||||||
| Book value per share |
$ | 17.85 | $ | 17.47 | $ | 16.99 | $ | 16.69 | $ | 16.52 | ||||||||||
| Common shares outstanding |
8,250,109 | 8,229,116 | 8,189,598 | 8,171,734 | 8,149,678 | |||||||||||||||
CALIFORNIA BANCORP AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
| Three months ended September 30, | Three months ended June 30, | |||||||||||||||||||||||
| 2021 | 2021 | |||||||||||||||||||||||
| Average Balance |
Yields or Rates |
Interest Income/ Expense |
Average Balance |
Yields or Rates |
Interest Income/ Expense |
|||||||||||||||||||
| ASSETS |
||||||||||||||||||||||||
| Interest earning assets: |
||||||||||||||||||||||||
| Loans (1) |
$ | 1,316,080 | 4.48 | % | $ | 14,870 | $ | 1,415,729 | 4.17 | % | $ | 14,703 | ||||||||||||
| Federal funds sold |
530,806 | 0.15 | % | 199 | 355,457 | 0.09 | % | 84 | ||||||||||||||||
| Investment securities |
65,811 | 2.83 | % | 470 | 58,794 | 2.67 | % | 392 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest earning assets |
1,912,697 | 3.22 | % | 15,539 | 1,829,980 | 3.33 | % | 15,179 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Noninterest-earning assets: |
||||||||||||||||||||||||
| Cash and due from banks |
18,627 | 19,147 | ||||||||||||||||||||||
| All other assets (2) |
54,570 | 60,431 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| TOTAL |
$ | 1,985,894 | $ | 1,909,558 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| LIABILITIES AND |
||||||||||||||||||||||||
| SHAREHOLDERS’ EQUITY |
||||||||||||||||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||||
| Deposits: |
||||||||||||||||||||||||
| Demand |
$ | 36,696 | 0.09 | % | $ | 8 | $ | 33,861 | 0.12 | % | $ | 10 | ||||||||||||
| Money market and savings |
735,785 | 0.52 | % | 961 | 673,460 | 0.55 | % | 925 | ||||||||||||||||
| Time |
169,849 | 0.43 | % | 183 | 172,452 | 0.47 | % | 203 | ||||||||||||||||
| Other |
102,287 | 2.12 | % | 546 | 139,458 | 1.31 | % | 455 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest-bearing liabilities |
1,044,617 | 0.64 | % | 1,698 | 1,019,231 | 0.63 | % | 1,593 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Noninterest-bearing liabilities: |
||||||||||||||||||||||||
| Demand deposits |
776,195 | 728,074 | ||||||||||||||||||||||
| Accrued expenses and other liabilities |
18,719 | 20,334 | ||||||||||||||||||||||
| Shareholders’ equity |
146,363 | 141,919 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| TOTAL |
$ | 1,985,894 | $ | 1,909,558 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net interest income and margin (3) |
2.87 | % | $ | 13,841 | 2.98 | % | $ | 13,586 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| (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 $1.0 million and $1.2 million, respectively. |
| (2) | Other noninterest-earning assets includes the allowance for loan losses of $13.3 million and $14.6 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 September 30, | ||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||
| Average Balance |
Yields or Rates |
Interest Income/ Expense |
Average Balance |
Yields or Rates |
Interest Income/ Expense |
|||||||||||||||||||
| ASSETS |
||||||||||||||||||||||||
| Interest earning assets: |
||||||||||||||||||||||||
| Loans (1) |
$ | 1,316,080 | 4.48 | % | $ | 14,870 | $ | 1,313,092 | 3.89 | % | $ | 12,849 | ||||||||||||
| Federal funds sold |
530,806 | 0.15 | % | 199 | 490,409 | 0.09 | % | 117 | ||||||||||||||||
| Investment securities |
65,811 | 2.83 | % | 470 | 39,571 | 2.23 | % | 222 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest earning assets |
1,912,697 | 3.22 | % | 15,539 | 1,843,072 | 2.85 | % | 13,188 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Noninterest-earning assets: |
||||||||||||||||||||||||
| Cash and due from banks |
18,627 | 19,789 | ||||||||||||||||||||||
| All other assets (2) |
54,570 | 60,140 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| TOTAL |
$ | 1,985,894 | $ | 1,923,001 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| LIABILITIES AND |
||||||||||||||||||||||||
| SHAREHOLDERS’ EQUITY |
||||||||||||||||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||||
| Deposits: |
||||||||||||||||||||||||
| Demand |
$ | 36,696 | 0.09 | % | $ | 8 | $ | 30,877 | 0.14 | % | $ | 11 | ||||||||||||
| Money market and savings |
735,785 | 0.52 | % | 961 | 582,694 | 0.81 | % | 1,190 | ||||||||||||||||
| Time |
169,849 | 0.43 | % | 183 | 174,436 | 0.61 | % | 266 | ||||||||||||||||
| Other |
102,287 | 2.12 | % | 546 | 369,764 | 0.57 | % | 533 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest-bearing liabilities |
1,044,617 | 0.64 | % | 1,698 | 1,157,771 | 0.69 | % | 2,000 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Noninterest-bearing liabilities: |
||||||||||||||||||||||||
| Demand deposits |
776,195 | 609,273 | ||||||||||||||||||||||
| Accrued expenses and other liabilities |
18,719 | 21,717 | ||||||||||||||||||||||
| Shareholders’ equity |
146,363 | 134,240 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| TOTAL |
$ | 1,985,894 | $ | 1,923,001 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net interest income and margin (3) |
2.87 | % | $ | 13,841 | 2.41 | % | $ | 11,188 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| (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 $1.0 million and $431,000, respectively. |
| (2) | Other noninterest-earning assets includes the allowance for loan losses of 13.3 million and $12.5 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)
| Nine months ended September 30, | ||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||
| Average Balance |
Yields or Rates |
Interest Income/ Expense |
Average Balance |
Yields or Rates |
Interest Income/ Expense |
|||||||||||||||||||
| ASSETS |
||||||||||||||||||||||||
| Interest earning assets: |
||||||||||||||||||||||||
| Loans (1) |
$ | 1,382,074 | 4.27 | % | $ | 44,157 | $ | 1,166,829 | 4.25 | % | $ | 37,096 | ||||||||||||
| Federal funds sold |
422,050 | 0.12 | % | 371 | 334,773 | 0.22 | % | 554 | ||||||||||||||||
| Investment securities |
60,042 | 2.72 | % | 1,222 | 33,649 | 2.47 | % | 621 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest earning assets |
1,864,166 | 3.28 | % | 45,750 | 1,535,251 | 3.33 | % | 38,271 | ||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Noninterest-earning assets: |
||||||||||||||||||||||||
| Cash and due from banks |
17,223 | 20,098 | ||||||||||||||||||||||
| All other assets (2) |
58,646 | 63,970 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| TOTAL |
$ | 1,940,035 | $ | 1,619,319 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| LIABILITIES AND |
||||||||||||||||||||||||
| SHAREHOLDERS’ EQUITY |
||||||||||||||||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||||
| Deposits: |
||||||||||||||||||||||||
| Demand |
$ | 35,031 | 0.11 | % | $ | 29 | $ | 26,842 | 0.12 | % | $ | 25 | ||||||||||||
| Money market and savings |
684,995 | 0.56 | % | 2,858 | 528,456 | 0.93 | % | 3,677 | ||||||||||||||||
| Time |
180,572 | 0.44 | % | 594 | 153,887 | 1.11 | % | 1,279 | ||||||||||||||||
| Other |
144,501 | 1.39 | % | 1,506 | 226,274 | 0.67 | % | 1,136 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest-bearing liabilities |
1,045,099 | 0.64 | % | 4,987 | 935,459 | 0.87 | % | 6,117 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Noninterest-bearing liabilities: |
||||||||||||||||||||||||
| Demand deposits |
731,659 | 529,580 | ||||||||||||||||||||||
| Accrued expenses and other liabilities |
20,966 | 21,298 | ||||||||||||||||||||||
| Shareholders’ equity |
142,311 | 132,982 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| TOTAL |
$ | 1,940,035 | $ | 1,619,319 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net interest income and margin (3) |
2.92 | % | $ | 40,763 | 2.80 | % | $ | 32,154 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| (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 $3.3 million and $851,000, respectively. |
| (2) | Other noninterest-earning assets includes the allowance for loan losses of $14.0 million and $12.0 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: | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | |||||||||||||||
| Net interest income |
$ | 13,841 | $ | 13,586 | $ | 13,336 | $ | 12,763 | $ | 11,188 | ||||||||||
| Non-interest income |
1,302 | 956 | 921 | 916 | 1,028 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total revenue |
$ | 15,143 | $ | 14,542 | $ | 14,257 | $ | 13,679 | $ | 12,216 | ||||||||||
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|
|
|
|
|
|
|
|
|
|
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|
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|
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|
|
|
|
|||||||||||
| PPP RELATED DEFERRED FEES AND COSTS: | Deferred Balance at Origination | Amortization of Deferred |
Deferred Balance |
|||||||||||||||||
| 2021 Program | 2020 Program | Total | Balance | Remaining | ||||||||||||||||
| PPP fees |
$ | 4,479 | $ | 9,086 | $ | 13,565 | $ | 10,612 | $ | 2,953 | ||||||||||
| PPP capitalized loan origination costs |
540 | 2,451 | 2,991 | 2,541 | $ | 450 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net PPP fees |
$ | 3,939 | $ | 6,635 | $ | 10,574 | $ | 8,071 | $ | 2,503 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| IMPACT OF PPP ACTIVITY REFLECTED | Amortization of Deferred Balance | |||||||||||||||||||
| IN NET INTEREST INCOME: | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | |||||||||||||||
| PPP fees |
$ | 1,909 | $ | 2,185 | $ | 2,222 | $ | 2,083 | $ | 1,114 | ||||||||||
| PPP capitalized loan origination costs |
348 | 514 | 633 | 527 | 266 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net PPP fees |
$ | 1,561 | $ | 1,671 | $ | 1,589 | $ | 1,556 | $ | 848 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| NON-INTEREST EXPENSE: | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | |||||||||||||||
| Total non-interest expense |
$ | 10,513 | $ | 9,835 | $ | 10,080 | $ | 10,416 | $ | 10,545 | ||||||||||
| Total capitalized loan origination costs |
1,197 | 1,217 | 1,513 | 1,198 | 986 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total operating expenses, before capitalization of loan origination costs |
$ | 11,710 | $ | 11,052 | $ | 11,593 | $ | 11,614 | $ | 11,531 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| GROSS LOANS: | 09/30/21 | 06/30/21 | 03/31/21 | 12/31/20 | 09/30/20 | |||||||||||||||
| Gross loans |
$ | 1,301,972 | $ | 1,352,639 | $ | 1,470,313 | $ | 1,369,070 | $ | 1,355,164 | ||||||||||
| PPP loans |
97,451 | 194,472 | 353,426 | 306,373 | 362,088 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gross loans, excluding PPP loans |
$ | 1,204,521 | $ | 1,158,167 | $ | 1,116,887 | $ | 1,062,697 | $ | 993,076 | ||||||||||
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