CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY ONLY |
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY ONLY Southern California Bancorp was organized in 2020 to serve as the holding company for Bank of Southern California, N.A., its wholly owned subsidiary. The earnings of the subsidiary are recognized using the equity method of accounting. The following tables present the parent company only condensed balance sheets at December 31, 2023 and 2022 and the related condensed statements of income and condensed statements of cash flows for the years ended December 31, 2023 and 2022.
Southern California Bancorp (Parent Company Only) CONDENSED BALANCE SHEETS
| | | | | | | | | | | | | | | | | December 31, | (dollars in thousands) | | 2023 | | 2022 | ASSETS | | | | | Cash | | $ | 3,586 | | | $ | 3,177 | | Investment in bank Subsidiary | | 301,455 | | | 274,714 | | Other investments | | 910 | | | 315 | | Accrued interest and other assets | | 110 | | | 214 | | Total assets | | $ | 306,061 | | | $ | 278,420 | |
| | | | | | | | | | | | | | | | | December 31, | (dollars in thousands) | | 2023 | | 2022 | | | | | | LIABILITIES | | | | | Subordinated debt and other borrowings | | $ | 17,865 | | | $ | 17,770 | | Accrued interest and other liabilities | | 44 | | | 295 | | Total liabilities | | 17,909 | | | 18,065 | | | | | | | SHAREHOLDERS’ EQUITY | | | | | Common stock | | 222,036 | | | 218,280 | | Retained earnings | | 70,575 | | | 48,516 | | Accumulated other comprehensive loss, net of taxes | | (4,459) | | | (6,441) | | Total shareholders’ equity | | 288,152 | | | 260,355 | | Total liabilities and shareholders’ equity | | $ | 306,061 | | | $ | 278,420 | |
Southern California Bancorp (Parent Company Only) CONDENSED STATEMENTS OF INCOME | | | | | | | | | | | | | | | | | Year Ended December 31, | (dollars in thousands) | | 2023 | | 2022 | INCOME | | | | | Other interest and dividends | | $ | — | | | $ | 2 | | Dividends from bank subsidiary | | 2,000 | | | 3,000 | | Total income | | 2,000 | | | 3,002 | | EXPENSES | | | | | Interest on borrowings | | 1,085 | | | 1,155 | | Merger and related expenses | | — | | | 1 | | Other noninterest expense | | 487 | | | 655 | | Total expenses | | 1,572 | | | 1,811 | | Income before income taxes | | 428 | | | 1,191 | | Income tax benefit | | 501 | | | 519 | | Income before equity in undistributed earnings of bank subsidiary | | 929 | | | 1,710 | | Equity in undistributed earnings of bank subsidiary | | 24,981 | | | 14,403 | | Net income | | $ | 25,910 | | | $ | 16,113 | |
Southern California Bancorp (Parent Company Only) CONDENSED STATEMENTS OF CASH FLOWS
| | | | | | | | | | | | | | | | | Year Ended December 31, | (dollars in thousands) | | 2023 | | 2022 | OPERATING ACTIVITIES | | | | | Net Income | | $ | 25,910 | | | $ | 16,113 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | Amortization of debt issuance costs | | 95 | | | 95 | | Amortization of junior subordinated debentures fair value adjustment | | — | | | 12 | | | | | | | | | | | | | | | | | | | | | | Loss on early debt extinguishment | | — | | | 347 | | Equity in undistributed earnings of bank subsidiary | | (24,981) | | | (14,403) | | Other items | | (147) | | | 481 | | Net cash provided by operating activities | | 877 | | | 2,645 | | | | | | | INVESTING ACTIVITIES | | | | | | | | | | Proceeds from junior subordinated debentures investment | | — | | | 93 | | Net purchase of other equity investments | | (595) | | | (315) | | | | | | | Net cash used in investing activities | | (595) | | | (222) | | | | | | | FINANCING ACTIVITIES | | | | | | | | | | | | | | | Repayment of other borrowings | | — | | | (3,093) | | | | | | | Proceeds from exercise of stock options | | $ | 127 | | | 1,009 | | Net cash provided by (used in) financing activities | | 127 | | | (2,084) | | | | | | | Increase in cash and cash equivalents | | 409 | | | 339 | | Cash and cash equivalents, beginning of year | | 3,177 | | | 2,838 | | Cash and cash equivalents, end of year | | $ | 3,586 | | | $ | 3,177 | |
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