EX-99.2 3 d816567dex992.htm EX-99.2 EX-99.2

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INVESTOR PRESENTATION Q2 2024 Steven E. Shelton CEO Thomas A. Sa President, CFO & COO Exhibit 99.2


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FORWARD-LOOKING STATEMENTS During the course of the presentation and any transcript that may result, written or otherwise, California BanCorp (the “Company”) may make projections or other forward-looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties. Actual results may differ materially from those stated in any forward-looking statement based on a number of important factors and risks. Although the Company may indicate and believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate or incorrect and therefore, there can be no assurance that the results contemplated in the forward-looking statements will be realized. The Company undertakes no obligation to release publicly the results of any revisions to the forward-looking statements included herein to reflect events or circumstances after today, or to reflect the occurrence of unanticipated events. The Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.


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Based on CALB’s stock price of $21.50 as of 6/28/24 Walnut Creek Headquarters/Regional Office in Oakland Regional Offices in San Jose, Walnut Creek and Sacramento Branch services in Walnut Creek OVERVIEW OF CALIFORNIA BANCORP Established in 2007 as a relationship focused commercial business bank serving Northern California with $1.92 billion in assets and a market capitalization of ~$182 million(1) Majority of executive management joined the bank at inception Significant commercial core deposit base Primary relationship managers with average banking experience of over 25 years and average loan books of $45 million Positioned to leverage recent investments to enhance our platform and extend our markets FOCUSED REGIONAL OFFICE FOOTPRINT COMPANY OVERVIEW FINANCIAL SNAPSHOT – 6/30/24 Balance Sheet ($mm)   Q2 2024 Profitability (%) Assets 1,917   ROAA -1.23 Loans 1,488   ROATCE -11.98 Deposits 1,639   Net Interest Margin 3.71 Tangible Equity 188   Efficiency Ratio 71.90 Loans/ Deposits (%) 91%   Cost of Deposits 2.32           Loan Composition (%)   Deposit Composition (%) C&I Loans / Gross Loans 41.1   DDA/ Total Deposits 39.1 CRE Loans / Gross Loans 55.2   Core Deposits/ Total Deposits 79.4           Capital Ratios (Consolidated) (%)   Credit Metrics (%) TCE / TA 9.85   NPAs / Loans & OREO 1.46 Leverage Ratio 9.93   NPAs / Assets 1.13 Tier 1 Ratio 10.06   Reserves / Gross Loans 1.10 TRBC Ratio 13.93   NCOs / Avg. Loans 0.89


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BRANCH LIGHT, COMMERCIAL FOCUSED BUSINESS BANK Middle market commercial banking focus Privately owned companies with $30 million - $300 million in annual revenue Clients with minimum lending relationships of $2 million or $1 million in deposits Portfolio managed over the long term to ~41% C&I loans and ~38% noninterest-bearing deposits Investing in other asset generating business lines Asset-Based Lending division established in July 2011 Practice Acquisition division established in March 2011 Construction division established December 2015 Sponsor Finance division established in February 2020 Strong core commercial deposit generation strategy Utilize technology with minimal branches Provide commercial cash management services to middle market clients Dedicated treasury management sales team and platform Dollars in millions Data as of 12/31 for each respective year 2015 – Q2’24 CAGR = 14.4% BUSINESS MODEL OVERVIEW LOAN GROWTH DEPOSIT GROWTH 2015 – Q2’24 CAGR Total gross loans = 13.9% Gross loans (ex. PPP) = 13.9%


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TAKING SHARE FROM NATIONAL/REGIONAL BANKS Combine Capabilities of a Big Bank with the High Service Levels of a Community Bank Attract top talent with deep market experience to compete against and win business from large banks Professional team with a consultative delivery process Invest in systems, tools, and technology for success in niche markets Offer clients access to key decision makers Ability to execute quickly, with market leading responsiveness PRODUCT AND SERVICE DIFFERENTIATION INDUSTRY & SPECIALTY LENDING FOCUS OUR “TYPICAL CLIENT” Commercial Banking Focused on Four Core Industries Manufacturing and Distribution Professional Contractor Investor CRE Practice Acquisition Asset Based Lending Sponsor Finance Construction Specialty Lending Groups ~$75 M in annual revenue $8 M revolving line with $3 M average outstanding $3 M equipment term loan $5 M commercial real estate loan $3 M demand deposit operating account $5 M money market accounts to hold surplus deposits Fee income driven by commercial portfolio account analysis and treasury management services


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EXPERIENCED MANAGEMENT TEAM Served as Executive Vice President and CCO from 2007 through 2017 Previously served in various executive management positions including Executive Vice President and Senior Lending Officer for Wells Fargo’s corporate bank and President & CCO of CivicBank of Commerce John Lindstedt, SEVP & CCO Emeritus Tom M. Dorrance, SEVP Technology & Operations Previously served as a Senior Vice President and Chief Information Officer for North Bay Bancorp Has worked in financial management and commercial banking since 1992 including I.T. Manager at CivicBank of Commerce Michele Wirfel, SEVP & CBO Previously served as the Bank’s Executive Vice President & East Bay Market President Has worked in financial management and commercial banking since 1991 in various executive management positions including regional manager for CivicBank of Commerce Age: 84 Age: 57 Age: 51 Previously served as an Executive Vice President of the Bank primarily responsible for managing production since the Bank’s founding in 2007 Served for thirteen years in various executive management positions including President of CivicBank of Commerce Steven E. Shelton, CEO Age: 58 Years at CALB: 16 Years in Industry: 37 Years at CALB: 16 Years in Industry: 53 Years at CALB: 16 Years in Industry: 29 Years at CALB: 16 Years in Industry: 30 Veteran banker with more than 15 years banking experience in the Sacramento area Previously served as Wells Fargo Senior Vice President and Sacramento Region Manager Scott Myers SEVP & CLO Age: 49 Joined 2019 Years in Industry: 25 More than 30 years’ experience in executive finance and risk management roles, most recently serving as Chief Risk Officer for Western Alliance Bank. Previously served in various executive and director roles at Bridge Bank and its holding company Bridge Capital Holdings (BBNK), including Chief Financial Officer and Chief Strategy Officer. Thomas A. Sa, President, CFO & COO Age: 57 Joined 2019 Years in Industry: 33 Previously served as Deputy Chief Credit Officer and part of senior management from 2007 to 2018 17 years of experience in various positions including lending and credit administration at Mechanics Bank Vivian Mui, SEVP & CCO Age: 40 Years at CALB: 16 Years in Industry: 20


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Dollars in millions Tangible book value per share and capital offering price adjusted for historical stock splits Data as of 12/31 for each respective year DEMONSTRATED GROWTH TRACK RECORD $16 million common stock offering at $9.90 per share to fund growth in June 2014 $4 million private placement offering at $12.86 per share to payoff SBLF in May 2016 Completed acquisition of Pan Pacific Bank ($131 million in assets) in December 2015 2015 – Q2’24 Asset CAGR of 13.9% Practice Acquisition Division opened in March 2011 Completed $25.0 million private offering of common stock in August 2018 Holding Company formed in June 2017 Walnut Creek LPO opened in July 2017 Bank founded in March 2007 with $27.5 million in capital Completed expansion into the Sacramento Region San Jose ABL Division opened in July 2011 Launched Sponsor Finance in February 2020 Completed $20 million sub-debt offering in September 2020 Listed on the NASDAQ stock market in March 2020 SUCCESSFUL EXPANSION THROUGHOUT NORTHERN CALIFORNIA Completed $35 million sub-debt offering in August 2021


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Dollars in millions Core deposits defined as total deposits less time deposits and brokered deposits. Data as of 12/31 for each respective year 2015 – Q2’24 CAGR DDA: 13.6% Total Deposits: 14.3% 0.23% 0.24% 0.35% Cost of Deposits 94% 93% 94% Core Deposit Mix 0.81% 88% 0.55% 91% 0.48% 87% 0.27% 91% 42% 44% 41% 39% 44% 46% 40% HISTORICAL DEPOSIT COMPOSITION DEPOSIT PORTFOLIO HIGHLIGHTS–6/30/24 STRONG CORE DEPOSIT BASE Deposits were neutral in 2Q24 as new deposit relationships offset seasonal outflows Core deposit base driven by commercial clients 95%+ of commercial relationships hold deposits at the bank Core deposits comprise 79% of total deposits Utilize remote deposit capture and commercial cash management to generate and retain deposits Treasury management division established in Q4-2019 DEPOSIT COMPOSITION 0.47% 85% 2.15% 81% 2.32% 79%


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Dollars in millions Data as of 12/31 for each respective year Excludes PPP loans DIVERSIFIED COMMERCIAL LOAN PORTFOLIO HISTORICAL LOAN COMPOSITION(1) OPERATING LOC USAGE LOAN PORTFOLIO COMPOSITION GROSS LOAN FUNDING VS. NET LOAN GROWTH(2) (3) 5.19% 96% 5.09% 97% 4.22% 89% Yield on Loans Loans /Deposits 4.29% 82% 40% 41% 30% (39% ex.PPP) 4.96% 89% 40% (41% ex.PPP) 40% 6.00% 96% 41% 6.13% 91%


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NEW LOAN PRODUCTION IN 2Q24 BOOKING NEW LOANS AT ATTRACTIVE RATES(1) NEW LOAN FUNDINGS(1) WTD. AVG. RATE ON NEW LOANS(1) Funded new loans with balances of $23 million in 2Q24 compared to $11 million in 1Q24 and $43 million in 2Q23 Weighted average rate on newly funded loans was 9.22% in 2Q24 compared to 7.82% in 1Q24 and 8.41% in 2Q23 2Q24 new loan dollar mix was 88% commercial, 11% CRE, and 1% other. Dollars in millions Excludes PPP loans


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CRE LOAN PORTFOLIO – INVESTOR CRE Conservatively underwriting portfolio with an average LTV of 49% Active risk management, stress testing, and evaluation of portfolio results in early recognition and resolution of potential problem credits, consistently strong asset quality, and minimal losses in the portfolio INVESTOR CRE BY PROPERTY TYPE(1) INVESTOR CRE BY GEOGRAPHIC BREAKDOWN (1) Data as a percent of total investor CRE, $583 million Data as of 6/30/2024


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CRE LOAN PORTFOLIO – INVESTOR CRE: OFFICE INVESTOR CRE OFFICE COMPOSITION(1) PORTFOLIO HIGHLIGHTS CRE PORTFOLIO COMPOSITION INVESTOR CRE NON-MEDICAL OFFICE GEOGRAPHY(2) Office CRE represents 11% of total loan portfolio with more than 80% of credits being recourse loans Investor Office Non-Medical/Dental portfolio represents 4% of total portfolio No exposure to downtown San Francisco market Majority of credits are located in suburban markets with stable tenants like medical and dental practices Conservative underwriting criteria with low LTVs and high DCRs


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COMMERCIAL LOAN PORTFOLIO WELL-DIVERSIFIED PORTFOLIO WITH FOCUS ON STRONG BORROWERS IN RECESSION RESISTANT INDUSTRIES COMMERCIAL LOAN PORTFOLIO(1) COMMERCIAL – SPONSOR FINANCE(2) Data as a percent of total Commercial Loans, $612 million Data as a percent of total Sponsor Finance Loans, $210 million Data as of 6/30/2024 SPONSOR FINANCE HIGHLIGHTS Weighted Average Senior Leverage: 1.90 Weighted Total Leverage: 2.81 Weighted Average FCCR: 1.72


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NET CHARGE-OFFS (RECOVERIES) ($000S)(1) NONPERFORMING ASSETS RESERVES / LOANS (1) NCOS (RECOVERIES) / AVG. LOANS (%) CECL Methodology adopted 1/1/2023 ASSET QUALITY TRENDS


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ASSET QUALITY TRENDS RISK GRADE SEGMENT SNAPSHOT ($000’s) Special Pass Watch Mention Substandard Nonaccrual Total June 30, 2024 Commercial and Industrial $ 470,720 $ 35,196 $ 24,434 $ 72,233 $ 9,624 $ 612,207 Real Estate - Other 745,723 34,411 20,581 9,320 11,516 821,551 Real Estate - Const & Land 10,943 - - 4,524 - 15,467 SBA 2,936 59 75 285 324 3,679 Other 34,793 - - - - 34,793 Total Gross Loans 1,265,115 69,666 45,090 86,362 21,464 1,487,697 March 31, 2024 Commercial and Industrial $ 491,815 $ 59,689 $ 25,720 $ 32,076 $ 1,159 $ 610,459 Real Estate - Other 757,955 27,839 41,569 6,780 - 834,143 Real Estate - Construction and Land 14,561 2,566 14,227 4,532 - 35,886 SBA 3,018 61 88 699 53 3,919 Other 36,484 - - - - 36,484 Total Gross Loans 1,303,833 90,155 81,604 44,087 1,212 1,520,891 RISK GRADE TRENDS ($000’s)


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ROATCE NET INTEREST MARGIN ROAA EFFICIENCY RATIO HISTORICAL PROFITABILITY TRENDS


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Disciplined Expense Management Driving Greater Operating Leverage Investment phase in 2018-2019 (talent, product development, and technology) built highly leverageable infrastructure and strong commercial banking team Operating expenses in 1Q24 and 2Q24 include merger related costs of $1.0 million and $647 thousand respectively Dollars in millions OPERATING EXPENSES BEFORE CAPITALIZED LOAN ORIGINATION COSTS


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CAPITAL RATIOS – BANK ONLY Data as of 12/31 for each respective year Closed subordinated debt offerings to support consolidated capital ratios totaling $20 million in 2020 and $35 million in 2021 LEVERAGE RATIO TIER 1 RATIO TCE / TA TOTAL CAPITAL RATIO


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Northern California commercial business bank with a disciplined approach to credit underwriting Proven organic and acquisition growth capabilities Strong commercial loan portfolio with corresponding commercial relationship deposits Experienced management team and seasoned C&I relationship managers Keen focus on relationship core deposits in deposit rich industries SUMMARY 3


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Please send questions to ir@bankcbc.com Or Call 510.457.3751 CaliforniaBankofCommerce.com