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	%
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	%
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	%
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	%
Net income	$	3,216		$	4,162		$	(946	)		-23	%	$	495		$	2,721			550	%
Diluted earnings per share	$	0.39		$	0.50		$	(0.11	)		-22	%	$	0.06		$	0.33			550	%
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	%
Net interest income		40,763			32,154			8,609			27	%
Provision for credit losses		(500	)		4,180			(4,680	)		-112	%
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	%
Income before income taxes		14,014			3,677			10,337			281	%
Income tax expense		3,827			1,159			2,668			230	%
Net income	$	10,187		$	2,518		$	7,669			305	%
Diluted earnings per share	$	1.23		$	0.31		$	0.92			297	%
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
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
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

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