Exhibit 99.1
California BanCorp Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2024
Oakland, CA – July 29, 2024 – California BanCorp (NASDAQ: CALB) (the “Company”), whose subsidiary is California Bank of Commerce, announced today its financial results for the second quarter and six months ended June 30, 2024.
The Company reported a net loss of $5.9 million for the second quarter of 2024, representing a decrease of $9.7 million, or 254%, compared to net income of $3.8 million for the first quarter of 2024 and a decrease of $11.3 million, or 208%, compared to $5.4 million in the second quarter of 2023. For the six months ended June 30, 2024, the Company reported a net loss of $2.0 million representing a decrease of $12.9 million, or 119%, compared to net income of $10.9 million for the same period in 2023.
Diluted earnings per share of $(0.68) for the second quarter of 2024, compared to $0.45 for the first quarter of 2024 and $0.65 for the second quarter of 2023. For the six months ended June 30, 2024, diluted earnings per share of $(0.24), compared to $1.29 for the same period in 2023.
“As we announced earlier this month, on July 17, 2024, at their respective shareholder meetings, shareholders of Southern California Bancorp and California BanCorp approved the merger of the two companies, and we expect the transaction to close on July 31, 2024,” said Steven Shelton, Chief Executive Officer of California BanCorp. “Our second quarter results were impacted by a $13.5 million provision for credit losses, largely as the result of stepped up resolution activity on loans individually identified during a rigorous review of our loan portfolio. During the quarter, we focused our efforts on an active strategy of de-risking our balance sheet and remained measured in our new loan production, which led to a decline in total loans. At the same time, we continued to add new commercial relationships that helped contribute to an increase in our balances of noninterest-bearing deposits. We look forward to closing our merger and capitalizing on the strong market position of our combined entity to continue adding attractive commercial relationships, generating profitable growth, and further enhancing the value of our franchise in the coming years.”
Financial Highlights:
Profitability—three months ended June 30, 2024 compared to March 31, 2024
| • | Net loss of $5.9 million and $(0.68) per diluted share, compared to net income of $3.8 million and $0.45 per share, respectively. |
| • | Revenue of $18.3 million decreased $1.1 million, or 6%, from $19.4 million for the first quarter of 2024 (See Interim Consolidated Non-GAAP Data). |
| • | Net interest income of $16.8 million decreased $892,000, or 5%, compared to $17.7 million for the first quarter of 2024. |
| • | Provision for credit losses of $13.5 million increased $13.4 million from $126,000 for the first quarter of 2024. |
| • | Non-interest income of $1.5 million decreased $187,000, or 11%, compared to $1.7 million for the first quarter of 2024. |
| • | Non-interest expense, excluding merger related expenses, of $12.5 million decreased $139,000, or 1%, compared to $12.7 million for the first quarter of 2024 (See Interim Consolidated Non-GAAP Data). |
Profitability—six months ended June 30, 2024 compared to June 30, 2023
| • | Net loss of $2.0 million and $(0.24) per diluted share, compared to net income of $10.9 million and $1.29 per diluted share, respectively. |
| • | Revenue of $37.8 million decreased $1.8 million, or 5%, compared to $39.6 million in the prior year (See Interim Consolidated Non-GAAP Data). |
| • | Net interest income of $34.5 million decreased $2.9 million, or 8%, compared to $37.4 million for the same period in the prior year. |
| • | Provision for credit losses of $13.6 million increased $12.8 million from $802,000 for the six months ended June 30, 2023. |
| • | Non-interest income of $3.2 million increased $981,000, or 44%, from $2.2 million for the same period in the prior year. |
| • | Non-interest expense, excluding merger related expenses, of $25.2 million increased $1.8 million, or 8%, compared to $23.4 million for the six months ended June 30, 2023 (See Interim Consolidated Non-GAAP Data). |
Financial Position – June 30, 2024 compared to March 31, 2024
| • | Total assets decreased by $5.2 million to $1.92 billion; average total assets decreased by $7.0 million to $1.91 billion. |
| • | Total gross loans decreased by $33.2 million to $1.49 billion; average total gross loans decreased by $11.1 million to $1.51 billion. |
| • | Total deposits decreased by $827,000 to $1.64 billion; average total deposits decreased by $7.0 million to $1.62 billion. |
| • | The Company had no other borrowings at June 30, 2024 or March 31, 2024. |
| • | Capital ratios remain healthy with a tier I leverage ratio of 9.93%, tier I capital ratio of 10.06%, and total risk-based capital ratio of 13.93%. |
| • | Book value per share of $23.07 decreased by $0.72, or 3%. |
| • | Tangible book value per share of $22.20 decreased by $0.71, or 3% (See Interim Consolidated Non-GAAP Data). |
Net Interest Income and Margin:
Net interest income for the quarter ended June 30, 2024 was $16.8 million, representing a decrease of $892,000, or 5%, from $17.7 million for the three months ended March 31, 2024, and a decrease of $1.8 million, or 10%, from $18.6 million for the quarter ended June 30, 2023. The decrease in net interest income compared to the first quarter of 2024 was primarily attributable to lower yields on interest earning assets. Compared to the second quarter of 2023, the decrease in net interest income resulted from a lower balance of average earning assets which was driven by a reduction in loan balances as a result of conservative underwriting combined with decreased demand and pay-offs occurring in the normal course of business. Additionally, during the current period the Company incurred higher yields on interest-bearing deposits.
Net interest income for the six months ended June 30, 2024 was $34.5 million, a decrease of $2.9 million, or 8% from $37.4 million for the six months ended June 30, 2023. The decrease in net interest income was primarily attributable to an increase in higher yields on interest-bearing deposits.
The Company’s net interest margin for the second quarter of 2024 was 3.71%, compared to 3.89% for the first quarter of 2024 and 3.93% for the same period in 2023. The Company’s net interest margin for the six months ended June 30, 2024 was 3.80% compared to 3.98% for the same period in 2023.
Non-Interest Income:
The Company’s non-interest income for the quarters ended June 30, 2024, March 31, 2024, and June 30, 2023 was $1.5 million, $1.7 million, and $1.1 million, respectively. For the six months ended June 30, 2024, non-interest income of $3.2 million compared to $2.2 million for the same period of 2023. The fluctuations in non-interest income from the prior periods were primarily due to service charges and loan related fees.
Net interest income and non-interest income comprised total revenue of $18.3 million, $19.4 million, and $19.8 million for the quarters ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively. Total revenue for the six months ended June 30, 2024 and 2023 was $37.8 million and $39.6 million, respectively (See Interim Consolidated Non-GAAP Data).
Non-Interest Expense:
The Company’s non-interest expense for the quarters ended June 30, 2024, March 31, 2024, and June 30, 2023 was $13.2 million, $13.7 million, and $11.6 million, respectively. Non-interest expense of $26.9 million for the six months ended June 30, 2024 increased by $3.5 million, or 15%, compared to $23.4 million for the same period of 2023. The fluctuations in non-interest expense from the prior periods was primarily due to the recognition of merger related expenses. Additionally, compared to the same periods in the prior year, the Company incurred increases in salaries and benefits as well as premises and equipment.
Excluding the impact of merger related expenses, non-interest expense for the second quarter of 2024, the first quarter of 2024 and the second quarter of 2023 was $12.5 million, $12.7 million, and $11.6 million, respectively. For the six months ended June 30, 2024 and 2023, non-interest expense excluding the impact of merger related expenses was $25.2 million and $23.4 million, respectively (See Interim Consolidated Non-GAAP Data).
The Company’s efficiency ratio, the ratio of non-interest expense to revenues, was 71.90%, 70.57%, and 58.66% for the quarters ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively. Excluding the impact of merger related expenses, the Company’s efficiency ratio was 68.38% and 65.29% for the second and first quarters of 2024, respectively. For the six months ended June 30, 2024 and 2023, the Company’s efficiency ratio was 71.22% and 59.14%, respectively. Excluding the impact of merger related expenses, the Company’s efficiency ratio was 66.79% for the six months ended June 30, 2024 (See Interim Consolidated Non-GAAP Data).
Balance Sheet:
Total assets were $1.92 billion as of June 30, 2024 and March 31, 2024, compared to total assets of $2.00 billion at June 30, 2023. The decrease in total assets from the prior year was primarily due to conservative new loan production, combined with decreased liquidity related to a reduction in noninterest-bearing deposits.
Total gross loans decreased by $33.2 million, or 2%, to $1.49 billion at June 30, 2024, from $1.52 billion at March 31, 2024 and decreased $95.9 million, or 6%, from $1.58 billion at June 30, 2023. During the second quarter of 2024, commercial loans increased by $1.7 million, or less than 1%, real estate related loans decreased by $33.0 million, or 4%, and other loans decreased $1.9 million, or 5%. Compared to the same period in the prior year, commercial, real estate other, real estate construction and land, and other loans decreased by $10.1 million, or 2%, $34.8 million, or 4%, $45.1 million, or 74%, and $5.9 million, or 13%, respectively.
Total deposits of $1.64 billion at June 30, 2024 remained unchanged from March 31, 2024, and decreased by $99.6 million, or 6%, from $1.74 billion at June 30, 2023. Compared to the same period last year, the decrease in total deposits was primarily concentrated in noninterest-bearing demand deposits. Noninterest-bearing deposits, primarily commercial business operating accounts, represented 39% of total deposits at both June 30, 2024 and March 31, 2024 and represented 43% of total deposits at June 30, 2023.
Excluding junior subordinated debt securities, the Company had no outstanding borrowings at June 30, 2024, March 31, 2024 or June 30, 2023.
Asset Quality:
The provision for credit losses on loans was $13.7 million for the second quarter of 2024, compared to $301,000 for the first quarter of 2024 and $340,000 for the second quarter of 2023. The Company had net loan charge-offs of $13.3 million, or 0.89% of gross loans, during the second quarter of 2024, net loan charge-offs of $348,000, or 0.02% of gross loans during the first quarter of 2024 and no charge-offs or recoveries during the second quarter of 2023.
Non-performing assets (“NPAs”) to total assets were 1.13% at June 30, 2024, compared to 0.08% at March 31, 2024 and 0.01% at June 30, 2023, with non-performing loans of $21.7 million, $1.5 million and $181,000, respectively, on those dates.
The allowance for credit losses on loans was $16.3 million, or 1.10% of total loans, at June 30, 2024, compared to $16.0 million, or 1.05% of total loans, at March 31, 2024 and $15.7 million, or 0.99% of total loans, at June 30, 2023.
The allowance for credit losses on unfunded loan commitments was $1.8 million, or 0.33% of total unfunded loan commitments, at June 30, 2024, compared to $2.0 million, or 0.32% of total unfunded loan commitments, at March 31, 2024 and $1.9 million, or 0.31% of total unfunded loan commitments, at June 30, 2023.
Capital Adequacy:
At June 30, 2024, shareholders’ equity totaled $195.5 million, compared to $200.7 million at March 31, 2024 and $184.2 million one year ago. Additionally, at June 30, 2024, the Company’s total risk-based capital ratio, tier one capital ratio, and leverage ratio were 13.93%, 10.06%, and 9.93%, respectively; all of which were above the regulatory standards of 10.00%, 8.00%, and 5.00%, respectively, for “well-capitalized” institutions.
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, please visit our website at www.californiabankofcommerce.com.
Contacts:
Steven E. Shelton, (510) 457-3751
Chief Executive Officer
seshelton@bankcbc.com
Thomas A. Sa, (510) 457-3775
President, Chief Financial Officer and Chief Operating Officer
tsa@bankcbc.com
Use of Non-GAAP Financial Information:
This press release contains both financial measures based on GAAP and non-GAAP. Non-GAAP financial measures are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. The non-GAAP financial measures included in this press release include: Total Revenue; Adjusted non-interest expense; Adjusted Efficiency Ratio; Tangible Equity to Tangible Assets Ratio; Quarterly and Year-to-Date Average Tangible Equity to Tangible Assets Ratio; and Tangible Book Value Per Share.
Forward-Looking Statements:
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 future performance or financial results 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 occurrence of any event, change or other circumstances that could give rise to the right of the Company or Southern California Bancorp to terminate their agreement with respect to the pending merger; the outcome of any legal proceedings that may be instituted against the Company or Southern California Bancorp; delays in completing the merger with Southern California Bancorp; the failure to satisfy any of the other conditions to the merger on a timely basis or at all; the ability to complete the merger and integration of the Company and Southern California Bancorp successfully; costs being greater than anticipated; cost savings being less than anticipated; the risk that the merger disrupts the business of the Company, Southern California Bancorp or the combined company; 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; the impacts of the failure of other depository institutions on investor and depositor sentiments and preferences; the Company’s ability to manage its liquidity; 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, 2023 which is on file with the Securities and Exchange Commission (the “SEC”).
Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today’s date, or to make predictions based solely on historical financial performance. The Company disclaims any obligation to update forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise, except as may be required by law.
FINANCIAL TABLES FOLLOW
CALIFORNIA BANCORP AND SUBSIDIARY
SELECTED INTERIM FINANCIAL INFORMATION (UNAUDITED) - PROFITABILITY
(Dollars in Thousands, Except Per Share Data)
| Change | Change | |||||||||||||||||||||||||||
| QUARTERLY HIGHLIGHTS: | Q2 2024 | Q1 2024 | $ | % | Q2 2023 | $ | % | |||||||||||||||||||||
| Interest income |
$ | 26,748 | $ | 27,382 | $ | (634 | ) | -2 | % | $ | 27,172 | $ | (424 | ) | -2 | % | ||||||||||||
| Interest expense |
9,925 | 9,667 | 258 | 3 | % | 8,526 | 1,399 | 16 | % | |||||||||||||||||||
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| Net interest income |
16,823 | 17,715 | (892 | ) | -5 | % | 18,646 | (1,823 | ) | -10 | % | |||||||||||||||||
| Provision for credit losses |
13,506 | 126 | 13,380 | 10619 | % | 444 | 13,062 | 2942 | % | |||||||||||||||||||
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| Net interest income after provision for credit losses |
3,317 | 17,589 | (14,272 | ) | -81 | % | 18,202 | (14,885 | ) | -82 | % | |||||||||||||||||
| Non-interest income |
1,518 | 1,705 | (187 | ) | -11 | % | 1,135 | 383 | 34 | % | ||||||||||||||||||
| Non-interest expense (1) |
13,188 | 13,704 | (516 | ) | -4 | % | 11,603 | 1,585 | 14 | % | ||||||||||||||||||
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| Income before income taxes |
(8,353 | ) | 5,590 | (13,943 | ) | -249 | % | 7,734 | (16,087 | ) | -208 | % | ||||||||||||||||
| Income tax expense |
(2,492 | ) | 1,773 | (4,265 | ) | -241 | % | 2,294 | (4,786 | ) | -209 | % | ||||||||||||||||
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| Net income |
$ | (5,861 | ) | $ | 3,817 | $ | (9,678 | ) | -254 | % | $ | 5,440 | $ | (11,301 | ) | -208 | % | |||||||||||
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| Diluted earnings per share |
$ | (0.68 | ) | $ | 0.45 | $ | (1.13 | ) | -251 | % | $ | 0.65 | $ | (1.33 | ) | -205 | % | |||||||||||
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| Net interest margin |
3.71 | % | 3.89 | % | -18 Basis Points | 3.93 | % | -22 Basis Points | ||||||||||||||||||||
| Efficiency ratio (1) |
71.90 | % | 70.57 | % | +133 Basis Points | 58.66 | % | +1324 Basis Points | ||||||||||||||||||||
| Change | ||||||||||||||||
| YEAR-TO-DATE HIGHLIGHTS: | 2024 | 2023 | $ | % | ||||||||||||
| Interest income |
$ | 54,130 | $ | 52,711 | $ | 1,419 | 3 | % | ||||||||
| Interest expense |
19,592 | 15,308 | 4,284 | 28 | % | |||||||||||
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| Net interest income |
34,538 | 37,403 | (2,865 | ) | -8 | % | ||||||||||
| Provision for credit losses |
13,632 | 802 | 12,830 | 1600 | % | |||||||||||
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| Net interest income after provision for credit losses |
20,906 | 36,601 | (15,695 | ) | -43 | % | ||||||||||
| Non-interest income |
3,223 | 2,242 | 981 | 44 | % | |||||||||||
| Non-interest expense (1) |
26,892 | 23,446 | 3,446 | 15 | % | |||||||||||
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| Income before income taxes |
(2,763 | ) | 15,397 | (18,160 | ) | -118 | % | |||||||||
| Income tax expense |
(719 | ) | 4,506 | (5,225 | ) | -116 | % | |||||||||
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| Net income |
$ | (2,044 | ) | $ | 10,891 | $ | (12,935 | ) | -119 | % | ||||||
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| Diluted earnings per share |
$ | (0.24 | ) | $ | 1.29 | $ | (1.53 | ) | -119 | % | ||||||
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| Net interest margin |
3.80 | % | 3.98 | % | -18 Basis Points | |||||||||||
| Efficiency ratio (1) |
71.22 | % | 59.14 | % | +1208 Basis Points | |||||||||||
| (1) | See pro-forma balances and ratios, excluding the impact of merger related expenses - Interim Consolidated Non-GAAP Data |
CALIFORNIA BANCORP AND SUBSIDIARY
SELECTED INTERIM FINANCIAL INFORMATION (UNAUDITED) - FINANCIAL POSITION
(Dollars in Thousands, Except Per Share Data)
| Change | Change | |||||||||||||||||||||||||||
| PERIOD-END HIGHLIGHTS: | Q2 2024 | Q1 2024 | $ | % | Q2 2023 | $ | % | |||||||||||||||||||||
| Total assets |
$ | 1,917,389 | $ | 1,922,541 | $ | (5,152 | ) | 0 | % | $ | 2,005,646 | $ | (88,257 | ) | -4 | % | ||||||||||||
| Gross loans |
1,487,697 | 1,520,891 | (33,194 | ) | -2 | % | 1,583,631 | (95,934 | ) | -6 | % | |||||||||||||||||
| Deposits |
1,638,689 | 1,639,516 | (827 | ) | 0 | % | 1,738,296 | (99,607 | ) | -6 | % | |||||||||||||||||
| Tangible equity (1) |
188,042 | 193,263 | (5,221 | ) | -3 | % | 176,783 | 11,259 | 6 | % | ||||||||||||||||||
| Tangible book value per share (1) |
$ | 22.20 | $ | 22.91 | $ | (0.71 | ) | -3 | % | $ | 21.09 | $ | 1.11 | 5 | % | |||||||||||||
| Tangible equity / tangible assets (1) |
9.85 | % | 10.09 | % | -24 Basis Points | 8.85 | % | +100 Basis Points | ||||||||||||||||||||
| Gross loans / total deposits |
90.79 | % | 92.76 | % | -197 Basis Points | 91.10 | % | -31 Basis Points | ||||||||||||||||||||
| Noninterest-bearing deposits / total deposits |
39.31 | % | 38.64 | % | +67 Basis Points | 42.69 | % | -338 Basis Points | ||||||||||||||||||||
| QUARTERLY AVERAGE | Change | Change | ||||||||||||||||||||||||||
| HIGHLIGHTS: | Q2 2024 | Q1 2024 | $ | % | Q2 2023 | $ | % | |||||||||||||||||||||
| Total assets |
$ | 1,909,125 | $ | 1,916,142 | $ | (7,017 | ) | 0 | % | $ | 1,983,877 | $ | (74,752 | ) | -4 | % | ||||||||||||
| Total earning assets |
1,823,785 | 1,831,333 | (7,548 | ) | 0 | % | 1,900,918 | (77,133 | ) | -4 | % | |||||||||||||||||
| Gross loans |
1,507,625 | 1,518,722 | (11,097 | ) | -1 | % | 1,577,529 | (69,904 | ) | -4 | % | |||||||||||||||||
| Deposits |
1,622,673 | 1,629,636 | (6,963 | ) | 0 | % | 1,684,008 | (61,335 | ) | -4 | % | |||||||||||||||||
| Tangible equity (1) |
196,841 | 193,094 | 3,747 | 2 | % | 175,783 | 21,058 | 12 | % | |||||||||||||||||||
| Tangible equity / tangible assets (1) |
10.35 | % | 10.12 | % | +23 Basis Points | 8.89 | % | +146 Basis Points | ||||||||||||||||||||
| Gross loans / total deposits |
92.91 | % | 93.19 | % | -28 Basis Points | 93.68 | % | -77 Basis Points | ||||||||||||||||||||
| Noninterest-bearing deposits / total deposits |
39.55 | % | 40.34 | % | -79 Basis Points | 42.65 | % | -310 Basis Points | ||||||||||||||||||||
| YEAR-TO-DATE AVERAGE | Change | |||||||||||||||
| HIGHLIGHTS: | Q2 2024 | Q2 2023 | $ | % | ||||||||||||
| Total assets |
$ | 1,912,634 | $ | 1,979,107 | $ | (66,473 | ) | -3 | % | |||||||
| Total earning assets |
1,827,558 | 1,897,448 | (69,890 | ) | -4 | % | ||||||||||
| Gross loans |
1,513,173 | 1,579,917 | (66,744 | ) | -4 | % | ||||||||||
| Deposits |
1,626,155 | 1,691,925 | (65,770 | ) | -4 | % | ||||||||||
| Tangible equity (1) |
194,967 | 172,636 | 22,331 | 13 | % | |||||||||||
| Tangible equity / tangible assets (1) |
10.23 | % | 8.76 | % | +147 Basis Points | |||||||||||
| Gross loans / total deposits |
93.05 | % | 93.38 | % | -33 Basis Points | |||||||||||
| Noninterest-bearing deposits / total deposits |
39.94 | % | 42.76 | % | -282 Basis Points | |||||||||||
| (1) | See Interim Consolidated Non-GAAP Data |
CALIFORNIA BANCORP AND SUBSIDIARY
SELECTED INTERIM FINANCIAL INFORMATION (UNAUDITED) - ASSET QUALITY
(Dollars in Thousands)
| ALLOWANCE FOR CREDIT LOSSES (LOANS): | 06/30/24 | 03/31/24 | 12/31/23 | 09/30/23 | 06/30/23 | |||||||||||||||
| Balance, beginning of period |
$ | 15,981 | $ | 16,028 | $ | 15,921 | $ | 15,722 | $ | 15,382 | ||||||||||
| CECL adjustment |
— | — | — | — | — | |||||||||||||||
| Provision for credit losses, quarterly |
13,668 | 301 | 87 | 121 | 340 | |||||||||||||||
| Charge-offs, quarterly |
(13,351 | ) | (439 | ) | — | (156 | ) | — | ||||||||||||
| Recoveries, quarterly |
50 | 91 | 20 | 234 | — | |||||||||||||||
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| Balance, end of period |
$ | 16,348 | $ | 15,981 | $ | 16,028 | $ | 15,921 | $ | 15,722 | ||||||||||
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| NONPERFORMING ASSETS: | 06/30/24 | 03/31/24 | 12/31/23 | 09/30/23 | 06/30/23 | |||||||||||||||
| Loans accounted for on a non-accrual basis |
$ | 21,463 | $ | 1,212 | $ | 3,781 | $ | 1,236 | $ | 181 | ||||||||||
| Loans with principal or interest contractually past due 90 days or more and still accruing interest |
244 | 240 | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Nonperforming loans |
$ | 21,707 | $ | 1,452 | $ | 3,781 | $ | 1,236 | $ | 181 | ||||||||||
| Other real estate owned |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Nonperforming assets |
$ | 21,707 | $ | 1,452 | $ | 3,781 | $ | 1,236 | $ | 181 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Nonperforming loans by asset type: |
||||||||||||||||||||
| Commercial |
$ | 9,624 | $ | 1,159 | $ | 3,728 | $ | 1,183 | $ | — | ||||||||||
| Real estate other |
11,515 | — | — | — | — | |||||||||||||||
| Real estate construction and land |
— | — | — | — | — | |||||||||||||||
| SBA |
324 | 53 | 53 | 53 | 181 | |||||||||||||||
| Other |
244 | 240 | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Nonperforming loans |
$ | 21,707 | $ | 1,452 | $ | 3,781 | $ | 1,236 | $ | 181 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| ASSET QUALITY: | 06/30/24 | 03/31/24 | 12/31/23 | 09/30/23 | 06/30/23 | |||||||||||||||
| Allowance for credit losses (loans) / gross loans |
1.10 | % | 1.05 | % | 1.03 | % | 1.01 | % | 0.99 | % | ||||||||||
| Allowance for credit losses (loans) / nonperforming loans |
75.31 | % | 1100.62 | % | 423.91 | % | 1288.11 | % | 8686.19 | % | ||||||||||
| Nonperforming assets / total assets |
1.13 | % | 0.08 | % | 0.19 | % | 0.06 | % | 0.01 | % | ||||||||||
| Nonperforming loans / gross loans |
1.46 | % | 0.10 | % | 0.24 | % | 0.08 | % | 0.01 | % | ||||||||||
| Net quarterly charge-offs / gross loans |
0.89 | % | 0.02 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
CALIFORNIA BANCORP AND SUBSIDIARY
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands, Except Per Share Data)
| Three months ended | Six months ended | |||||||||||||||||||
| 06/30/24 | 03/31/24 | 06/30/23 | 06/30/24 | 06/30/23 | ||||||||||||||||
| INTEREST INCOME |
||||||||||||||||||||
| Loans |
$ | 22,962 | $ | 23,574 | $ | 23,476 | $ | 46,536 | $ | 45,948 | ||||||||||
| Federal funds sold |
2,542 | 2,334 | 2,238 | 4,876 | 3,998 | |||||||||||||||
| Investment securities |
1,244 | 1,474 | 1,458 | 2,718 | 2,765 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total interest income |
26,748 | 27,382 | 27,172 | 54,130 | 52,711 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| INTEREST EXPENSE |
||||||||||||||||||||
| Deposits |
9,366 | 9,096 | 7,493 | 18,462 | 13,515 | |||||||||||||||
| Other |
559 | 571 | 1,033 | 1,130 | 1,793 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total interest expense |
9,925 | 9,667 | 8,526 | 19,592 | 15,308 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net interest income |
16,823 | 17,715 | 18,646 | 34,538 | 37,403 | |||||||||||||||
| Provision for credit losses |
13,506 | 126 | 444 | 13,632 | 802 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net interest income after provision for credit losses |
3,317 | 17,589 | 18,202 | 20,906 | 36,601 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| NON-INTEREST INCOME |
||||||||||||||||||||
| Service charges and other fees |
1,147 | 1,379 | 867 | 2,526 | 1,730 | |||||||||||||||
| Other non-interest income |
371 | 326 | 268 | 697 | 512 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total non-interest income |
1,518 | 1,705 | 1,135 | 3,223 | 2,242 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| NON-INTEREST EXPENSE (1) |
||||||||||||||||||||
| Salaries and benefits |
8,925 | 8,852 | 7,831 | 17,777 | 15,707 | |||||||||||||||
| Premises and equipment |
1,431 | 1,452 | 1,168 | 2,883 | 2,348 | |||||||||||||||
| Merger related expenses |
647 | 1,024 | — | 1,671 | — | |||||||||||||||
| Other |
2,185 | 2,376 | 2,604 | 4,561 | 5,391 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total non-interest expense |
13,188 | 13,704 | 11,603 | 26,892 | 23,446 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income before income taxes |
(8,353 | ) | 5,590 | 7,734 | (2,763 | ) | 15,397 | |||||||||||||
| Income taxes |
(2,492 | ) | 1,773 | 2,294 | (719 | ) | 4,506 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| NET INCOME |
$ | (5,861 | ) | $ | 3,817 | $ | 5,440 | $ | (2,044 | ) | $ | 10,891 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| EARNINGS PER SHARE |
||||||||||||||||||||
| Basic earnings per share |
$ | (0.69 | ) | $ | 0.45 | $ | 0.65 | $ | (0.24 | ) | $ | 1.30 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Diluted earnings per share |
$ | (0.68 | ) | $ | 0.45 | $ | 0.65 | $ | (0.24 | ) | $ | 1.29 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Average common shares outstanding |
8,456,488 | 8,413,735 | 8,369,907 | 8,480,654 | 8,354,564 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Average common and equivalent shares outstanding |
8,558,432 | 8,566,712 | 8,414,213 | 8,610,179 | 8,442,607 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| PERFORMANCE MEASURES |
||||||||||||||||||||
| Return on average assets |
-1.23 | % | 0.80 | % | 1.10 | % | -0.21 | % | 1.11 | % | ||||||||||
| Return on average equity |
-11.54 | % | 7.66 | % | 11.91 | % | -2.03 | % | 12.19 | % | ||||||||||
| Return on average tangible equity |
-11.98 | % | 7.95 | % | 12.41 | % | -2.11 | % | 12.72 | % | ||||||||||
| Efficiency ratio (1) |
71.90 | % | 70.57 | % | 58.66 | % | 71.22 | % | 59.14 | % | ||||||||||
| (1) | See pro-forma balances and ratios, excluding the impact of merger related expenses - Interim Consolidated Non-GAAP Data |
CALIFORNIA BANCORP AND SUBSIDIARY
INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
| 06/30/24 | 03/31/24 | 12/31/23 | 09/30/23 | 06/30/23 | ||||||||||||||||
| ASSETS |
||||||||||||||||||||
| Cash and due from banks |
$ | 14,036 | $ | 12,071 | $ | 27,520 | $ | 17,128 | $ | 19,763 | ||||||||||
| Federal funds sold |
217,713 | 191,027 | 184,834 | 181,854 | 187,904 | |||||||||||||||
| Investment securities |
125,303 | 126,918 | 145,401 | 149,244 | 151,129 | |||||||||||||||
| Loans: |
||||||||||||||||||||
| Commercial |
612,208 | 610,459 | 626,615 | 633,902 | 622,270 | |||||||||||||||
| Real estate other |
821,551 | 834,143 | 849,306 | 858,611 | 856,344 | |||||||||||||||
| Real estate construction and land |
15,467 | 35,886 | 44,186 | 40,003 | 60,595 | |||||||||||||||
| SBA |
3,678 | 3,919 | 4,032 | 4,415 | 4,936 | |||||||||||||||
| Other |
34,793 | 36,484 | 35,394 | 36,184 | 39,486 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Loans, gross |
1,487,697 | 1,520,891 | 1,559,533 | 1,573,115 | 1,583,631 | |||||||||||||||
| Unamortized net deferred loan costs (fees) |
1,708 | 1,223 | 1,107 | 1,312 | 1,637 | |||||||||||||||
| Allowance for credit losses |
(16,348 | ) | (15,981 | ) | (16,028 | ) | (15,921 | ) | (15,722 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Loans, net |
1,473,057 | 1,506,133 | 1,544,612 | 1,558,506 | 1,569,546 | |||||||||||||||
| Premises and equipment, net |
1,763 | 1,987 | 2,207 | 2,432 | 2,625 | |||||||||||||||
| Bank owned life insurance |
26,273 | 26,084 | 25,878 | 25,697 | 25,519 | |||||||||||||||
| Goodwill and core deposit intangible |
7,415 | 7,422 | 7,432 | 7,442 | 7,452 | |||||||||||||||
| Accrued interest receivable and other assets |
51,829 | 50,899 | 48,021 | 41,614 | 41,708 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total assets |
$ | 1,917,389 | $ | 1,922,541 | $ | 1,985,905 | $ | 1,983,917 | $ | 2,005,646 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| LIABILITIES |
||||||||||||||||||||
| Deposits: |
||||||||||||||||||||
| Demand noninterest-bearing |
$ | 644,179 | $ | 633,489 | $ | 657,302 | $ | 686,723 | $ | 742,160 | ||||||||||
| Demand interest-bearing |
22,550 | 21,911 | 26,715 | 28,533 | 29,324 | |||||||||||||||
| Money market and savings |
633,880 | 656,236 | 631,015 | 672,119 | 633,620 | |||||||||||||||
| Time |
338,080 | 327,880 | 310,212 | 319,706 | 333,192 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total deposits |
1,638,689 | 1,639,516 | 1,625,244 | 1,707,081 | 1,738,296 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Junior subordinated debt securities |
54,360 | 54,326 | 54,291 | 54,256 | 54,221 | |||||||||||||||
| Other borrowings |
— | — | 75,000 | — | — | |||||||||||||||
| Accrued interest payable and other liabilities |
28,883 | 28,014 | 34,909 | 32,465 | 28,894 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total liabilities |
1,721,932 | 1,721,856 | 1,789,444 | 1,793,802 | 1,821,411 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| SHAREHOLDERS’ EQUITY |
||||||||||||||||||||
| Common stock |
114,095 | 113,566 | 113,227 | 112,656 | 112,167 | |||||||||||||||
| Retained earnings |
82,121 | 87,982 | 84,165 | 78,824 | 73,423 | |||||||||||||||
| Accumulated other comprehensive loss |
(759 | ) | (863 | ) | (931 | ) | (1,365 | ) | (1,355 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total shareholders’ equity |
195,457 | 200,685 | 196,461 | 190,115 | 184,235 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total liabilities and shareholders’ equity |
$ | 1,917,389 | $ | 1,922,541 | $ | 1,985,905 | $ | 1,983,917 | $ | 2,005,646 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| CAPITAL ADEQUACY |
||||||||||||||||||||
| Tier I leverage ratio |
9.93 | % | 10.17 | % | 9.61 | % | 9.27 | % | 9.01 | % | ||||||||||
| Tier I risk-based capital ratio |
10.06 | % | 10.15 | % | 9.53 | % | 9.34 | % | 9.07 | % | ||||||||||
| Total risk-based capital ratio |
13.93 | % | 13.93 | % | 13.16 | % | 13.00 | % | 12.73 | % | ||||||||||
| Total equity/ total assets |
10.19 | % | 10.44 | % | 9.89 | % | 9.58 | % | 9.19 | % | ||||||||||
| Book value per share |
$ | 23.07 | $ | 23.79 | $ | 23.38 | $ | 22.64 | $ | 21.98 | ||||||||||
| Common shares outstanding |
8,472,038 | 8,436,732 | 8,402,482 | 8,395,483 | 8,383,772 | |||||||||||||||
CALIFORNIA BANCORP AND SUBSIDIARY
INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
(Dollars in Thousands)
| Three months ended June 30, | Three months ended March 31, | |||||||||||||||||||||||
| 2024 | 2024 | |||||||||||||||||||||||
| Yields | Interest | Yields | Interest | |||||||||||||||||||||
| Average | or | Income/ | Average | or | Income/ | |||||||||||||||||||
| Balance | Rates | Expense | Balance | Rates | Expense | |||||||||||||||||||
| ASSETS |
||||||||||||||||||||||||
| Interest earning assets: |
||||||||||||||||||||||||
| Loans (1) |
$ | 1,507,625 | 6.13 | % | $ | 22,962 | $ | 1,518,722 | 6.24 | % | $ | 23,574 | ||||||||||||
| Federal funds sold |
190,007 | 5.38 | % | 2,542 | 174,551 | 5.38 | % | 2,334 | ||||||||||||||||
| Investment securities |
126,153 | 3.97 | % | 1,244 | 138,060 | 4.29 | % | 1,474 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest earning assets |
1,823,785 | 5.90 | % | 26,748 | 1,831,333 | 6.01 | % | 27,382 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Noninterest-earning assets: |
||||||||||||||||||||||||
| Cash and due from banks |
17,526 | 18,858 | ||||||||||||||||||||||
| All other assets (2) |
67,814 | 65,951 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| TOTAL |
$ | 1,909,125 | $ | 1,916,142 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||||||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||||
| Deposits: |
||||||||||||||||||||||||
| Demand |
$ | 23,735 | 0.22 | % | 13 | $ | 24,736 | 0.20 | % | 12 | ||||||||||||||
| Money market and savings |
637,301 | 3.24 | % | 5,128 | 635,696 | 3.12 | % | 4,928 | ||||||||||||||||
| Time |
319,899 | 5.31 | % | 4,225 | 311,884 | 5.36 | % | 4,156 | ||||||||||||||||
| Other |
54,339 | 4.14 | % | 559 | 55,130 | 4.17 | % | 571 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest-bearing liabilities |
1,035,274 | 3.86 | % | 9,925 | 1,027,446 | 3.78 | % | 9,667 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Noninterest-bearing liabilities: |
||||||||||||||||||||||||
| Demand deposits |
641,738 | 657,320 | ||||||||||||||||||||||
| Accrued expenses and other liabilities |
27,855 | 30,856 | ||||||||||||||||||||||
| Shareholders’ equity |
204,258 | 200,520 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| TOTAL |
$ | 1,909,125 | $ | 1,916,142 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net interest income and margin (3) |
3.71 | % | $ | 16,823 | 3.89 | % | $ | 17,715 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| (1) | Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of net deferred loan costs of $197,000 and $34,000, respectively. |
| (2) | Other noninterest-earning assets includes the allowance for credit losses of $15.2 million and $16.1 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 June 30, | ||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| Yields | Interest | Yields | Interest | |||||||||||||||||||||
| Average | or | Income/ | Average | or | Income/ | |||||||||||||||||||
| Balance | Rates | Expense | Balance | Rates | Expense | |||||||||||||||||||
| ASSETS |
||||||||||||||||||||||||
| Interest earning assets: |
||||||||||||||||||||||||
| Loans (1) |
$ | 1,507,625 | 6.13 | % | $ | 22,962 | $ | 1,577,529 | 5.97 | % | $ | 23,476 | ||||||||||||
| Federal funds sold |
190,007 | 5.38 | % | 2,542 | 170,608 | 5.26 | % | 2,238 | ||||||||||||||||
| Investment securities |
126,153 | 3.97 | % | 1,244 | 152,781 | 3.83 | % | 1,458 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest earning assets |
1,823,785 | 5.90 | % | 26,748 | 1,900,918 | 5.73 | % | 27,172 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Noninterest-earning assets: |
||||||||||||||||||||||||
| Cash and due from banks |
17,526 | 19,207 | ||||||||||||||||||||||
| All other assets (2) |
67,814 | 63,752 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| TOTAL |
$ | 1,909,125 | $ | 1,983,877 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||||||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||||
| Deposits: |
||||||||||||||||||||||||
| Demand |
$ | 23,735 | 0.22 | % | 13 | $ | 30,346 | 0.16 | % | 12 | ||||||||||||||
| Money market and savings |
637,301 | 3.24 | % | 5,128 | 609,200 | 2.50 | % | 3,793 | ||||||||||||||||
| Time |
319,899 | 5.31 | % | 4,225 | 326,291 | 4.53 | % | 3,688 | ||||||||||||||||
| Other |
54,339 | 4.14 | % | 559 | 90,188 | 4.59 | % | 1,033 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest-bearing liabilities |
1,035,274 | 3.86 | % | 9,925 | 1,056,025 | 3.24 | % | 8,526 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Noninterest-bearing liabilities: |
||||||||||||||||||||||||
| Demand deposits |
641,738 | 718,171 | ||||||||||||||||||||||
| Accrued expenses and other liabilities |
27,855 | 26,441 | ||||||||||||||||||||||
| Shareholders’ equity |
204,258 | 183,240 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| TOTAL |
$ | 1,909,125 | $ | 1,983,877 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net interest income and margin (3) |
3.71 | % | $ | 16,823 | 3.93 | % | $ | 18,646 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| (1) | Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of net deferred loan costs of $197,000 and $175,000, respectively. |
| (2) | Other noninterest-earning assets includes the allowance for credit losses of $15.2 million and $15.4 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)
| Six months ended June 30, | ||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| Yields | Interest | Yields | Interest | |||||||||||||||||||||
| Average | or | Income/ | Average | or | Income/ | |||||||||||||||||||
| Balance | Rates | Expense | Balance | Rates | Expense | |||||||||||||||||||
| ASSETS |
||||||||||||||||||||||||
| Interest earning assets: |
||||||||||||||||||||||||
| Loans (1) |
$ | 1,513,173 | 6.18 | % | $ | 46,536 | $ | 1,579,917 | 5.86 | % | $ | 45,948 | ||||||||||||
| Federal funds sold |
182,279 | 5.38 | % | 4,876 | 163,812 | 4.92 | % | 3,998 | ||||||||||||||||
| Investment securities |
132,106 | 4.14 | % | 2,718 | 153,719 | 3.63 | % | 2,765 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest earning assets |
1,827,558 | 5.96 | % | 54,130 | 1,897,448 | 5.60 | % | 52,711 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Noninterest-earning assets: |
||||||||||||||||||||||||
| Cash and due from banks |
18,192 | 18,656 | ||||||||||||||||||||||
| All other assets (2) |
66,884 | 63,003 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| TOTAL |
$ | 1,912,634 | $ | 1,979,107 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||||||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||||
| Deposits: |
||||||||||||||||||||||||
| Demand |
$ | 24,236 | 0.21 | % | 25 | $ | 32,179 | 0.12 | % | 19 | ||||||||||||||
| Money market and savings |
636,499 | 3.18 | % | 10,056 | 617,885 | 2.25 | % | 6,897 | ||||||||||||||||
| Time |
315,891 | 5.34 | % | 8,381 | 318,313 | 4.18 | % | 6,599 | ||||||||||||||||
| Other |
54,734 | 4.15 | % | 1,130 | 80,701 | 4.48 | % | 1,793 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total interest-bearing liabilities |
1,031,360 | 3.82 | % | 19,592 | 1,049,078 | 2.94 | % | 15,308 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Noninterest-bearing liabilities: |
||||||||||||||||||||||||
| Demand deposits |
649,529 | 723,548 | ||||||||||||||||||||||
| Accrued expenses and other liabilities |
29,356 | 26,383 | ||||||||||||||||||||||
| Shareholders’ equity |
202,389 | 180,098 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| TOTAL |
$ | 1,912,634 | $ | 1,979,107 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net interest income and margin (3) |
3.80 | % | $ | 34,538 | 3.98 | % | $ | 37,403 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| (1) | Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of net deferred loan costs of $231,000 and $401,000, respectively. |
| (2) | Other noninterest-earning assets includes the allowance for loan losses of $15.7 million and $16.2 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, Except Per Share Data)
| TOTAL REVENUE: | Three months ended | Six months ended | ||||||||||||||||||
| 06/30/24 | 03/31/24 | 06/30/23 | 06/30/24 | 06/30/23 | ||||||||||||||||
| Net interest income |
$ | 16,823 | $ | 17,715 | $ | 18,646 | $ | 34,538 | $ | 37,403 | ||||||||||
| Non-interest income |
1,518 | 1,705 | 1,135 | 3,223 | 2,242 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total revenue |
$ | 18,341 | $ | 19,420 | $ | 19,781 | $ | 37,761 | $ | 39,645 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| ADJUSTED NON-INTEREST EXPENSE | Three months ended | Six months ended | ||||||||||||||||||
| AND EFFICIENCY RATIO: | 06/30/24 | 03/31/24 | 06/30/23 | 06/30/24 | 06/30/23 | |||||||||||||||
| Non-interest expense |
$ | 13,188 | $ | 13,704 | $ | 11,603 | $ | 26,892 | $ | 23,446 | ||||||||||
| Less: Merger related expenses |
(647 | ) | (1,024 | ) | — | (1,671 | ) | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total non-interest expense, before merger related expenses |
$ | 12,541 | $ | 12,680 | $ | 11,603 | $ | 25,221 | $ | 23,446 | ||||||||||
| Total revenue |
$ | 18,341 | $ | 19,420 | $ | 19,781 | $ | 37,761 | $ | 39,645 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Adjusted efficiency ratio |
68.38 | % | 65.29 | % | 58.66 | % | 66.79 | % | 59.14 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| AVERAGE TANGIBLE EQUITY / | Three months ended | Six months ended | ||||||||||||||||||
| AVERAGE TANGIBLE ASSETS: | 06/30/24 | 03/31/24 | 06/30/23 | 06/30/24 | 06/30/23 | |||||||||||||||
| Total assets |
$ | 1,909,125 | $ | 1,916,142 | $ | 1,983,877 | $ | 1,912,634 | $ | 1,979,107 | ||||||||||
| Goodwill and core deposit intangibles |
7,417 | 7,426 | 7,457 | 7,422 | 7,462 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Tangible assets |
$ | 1,901,708 | $ | 1,908,716 | $ | 1,976,420 | $ | 1,905,212 | $ | 1,971,645 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total shareholders’ equity |
$ | 204,258 | $ | 200,520 | $ | 183,240 | $ | 202,389 | $ | 180,098 | ||||||||||
| Goodwill and core deposit intangibles |
7,417 | 7,426 | 7,457 | 7,422 | 7,462 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Tangible equity |
$ | 196,841 | $ | 193,094 | $ | 175,783 | $ | 194,967 | $ | 172,636 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Tangible equity / tangible assets |
10.35 | % | 10.12 | % | 8.89 | % | 10.23 | % | 8.76 | % | ||||||||||
CALIFORNIA BANCORP AND SUBSIDIARY
INTERIM CONSOLIDATED NON-GAAP DATA (UNAUDITED)
(Dollars in Thousands)
| TANGIBLE EQUITY / TANGIBLE ASSETS: | 06/30/24 | 03/31/24 | 12/31/23 | 09/30/23 | 06/30/23 | |||||||||||||||
| Total assets |
$ | 1,917,389 | $ | 1,922,541 | $ | 1,985,905 | $ | 1,983,917 | $ | 2,005,646 | ||||||||||
| Goodwill and core deposit intangibles |
7,415 | 7,422 | 7,432 | 7,442 | 7,452 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Tangible assets |
$ | 1,909,974 | $ | 1,915,119 | $ | 1,978,473 | $ | 1,976,475 | $ | 1,998,194 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total shareholders’ equity |
$ | 195,457 | $ | 200,685 | $ | 196,461 | $ | 190,115 | $ | 184,235 | ||||||||||
| Goodwill and core deposit intangibles |
7,415 | 7,422 | 7,432 | 7,442 | 7,452 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Tangible equity |
$ | 188,042 | $ | 193,263 | $ | 189,029 | $ | 182,673 | $ | 176,783 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Tangible equity / tangible assets |
9.85 | % | 10.09 | % | 9.55 | % | 9.24 | % | 8.85 | % | ||||||||||
| BOOK VALUE PER SHARE: | 06/30/24 | 03/31/24 | 12/31/23 | 09/30/23 | 06/30/23 | |||||||||||||||
| Total shareholders’ equity |
$ | 195,457 | $ | 200,685 | $ | 196,461 | $ | 190,115 | $ | 184,235 | ||||||||||
| Common shares outstanding |
8,472,038 | 8,436,732 | 8,402,482 | 8,395,483 | 8,383,772 | |||||||||||||||
| Total shareholders’ equity / common shares outstanding |
$ | 23.07 | $ | 23.79 | $ | 23.38 | $ | 22.64 | $ | 21.98 | ||||||||||
| TANGIBLE BOOK VALUE PER SHARE: | 06/30/24 | 03/31/24 | 12/31/23 | 09/30/23 | 06/30/23 | |||||||||||||||
| Tangible equity |
$ | 188,042 | $ | 193,263 | $ | 189,029 | $ | 182,673 | $ | 176,783 | ||||||||||
| Common shares outstanding |
8,472,038 | 8,436,732 | 8,402,482 | 8,395,483 | 8,383,772 | |||||||||||||||
| Tangible equity / common shares outstanding |
$ | 22.20 | $ | 22.91 | $ | 22.50 | $ | 21.76 | $ | 21.09 | ||||||||||
