CALIFORNIA BANCORP REPORTS NET INCOME OF $16.9 MILLION FOR THE FIRST QUARTER OF 2025
Rhea-AI Summary
California BanCorp (NASDAQ: BCAL) reported strong Q1 2025 financial results with net income of $16.9 million, or $0.52 per diluted share, compared to $16.8 million in Q4 2024 and $4.9 million in Q1 2024.
Key highlights include:
- Net interest margin of 4.65%
- Return on average assets of 1.71%
- Efficiency ratio of 55.6%
- Total assets of $3.98 billion
- Total loans of $3.07 billion
- Total deposits of $3.34 billion
The bank continued its strategy of derisking the balance sheet by reducing Sponsor Finance portfolio exposure and decreasing reliance on brokered deposits, which declined by $107.4 million. Tangible book value increased to $12.29 per common share, up $0.58 from the previous quarter.
Positive
- Net income increased to $16.9 million, up from $4.9 million year-over-year
- Net interest margin improved to 4.65% from 4.61% quarter-over-quarter
- Nonperforming assets ratio improved to 0.68% from 0.76%
- Cost of deposits decreased to 1.59% from 1.87%
- Tangible book value per share increased by $0.58
Negative
- Total assets decreased by $48.6 million to $3.98 billion
- Total loans declined by $82.9 million
- Total deposits decreased by $56.3 million
- Net interest income decreased to $42.3 million from $44.5 million quarter-over-quarter
News Market Reaction – BCAL
In the trading session that priced this news, BCAL gained 3.22%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
San Diego, Calif., April 24, 2025 (GLOBE NEWSWIRE) -- California BanCorp (“us,” “we,” “our,” or the “Company”) (NASDAQ: BCAL), the holding company for California Bank of Commerce, N.A. (the “Bank”) announces its consolidated financial results for the first quarter of 2025.
The Company reported net income of
“I’m pleased to report our strong first quarter earnings of
“We continue with our successful integration, as demonstrated by the strong performance achieved in our first two quarters of combined operations,” said Steven Shelton, CEO of the Company and Bank. “Markets have been volatile lately with the recent changes in tariff policies and given the fluid dynamics of the situation we are reaching out to our clients to assess the potential impact of these changing policies on their businesses. As always, we continue to focus on providing them the highest level of outstanding service, and on building shareholder value.”
First Quarter 2025 Highlights
| ● | Net income of | |
| ● | Net interest margin of | |
| ● | Reversal of credit losses of | |
| ● | Return on average assets of | |
| ● | Return on average common equity of | |
| ● | Efficiency ratio (non-GAAP1) of | |
| ● | Tangible book value per common share (non-GAAP1) of | |
| ● | Total assets of | |
| ● | Total loans, including loans held for sale of | |
| ● | Nonperforming assets to total assets ratio of | |
| ● | Allowance for credit losses (“ACL”) was | |
| ● | Total deposits of | |
| ● | Noninterest-bearing demand deposits of | |
| ● | Total brokered deposits of | |
| ● | Cost of deposits was | |
| ● | Cost of funds was | |
| ● | The Company’s preliminary capital ratios at March 31, 2025 exceed the minimums required to be “well-capitalized,” the highest regulatory capital category. | |
First Quarter Operating Results
Net Income
Net income for the first quarter of 2025 was
Net Interest Income and Net Interest Margin
Net interest income for the first quarter of 2025 was
Net interest margin for the first quarter of 2025 was
Cost of funds for the first quarter of 2025 was
Average total borrowings increased
Reversal of Credit Losses
The Company recorded a reversal of credit losses of
The reversal of credit losses for loans held for investment in the first quarter of 2025 was
Noninterest Income
The Company recorded noninterest income of
Noninterest Expense
Total noninterest expense for the first quarter of 2025 was
Salaries and employee benefits decreased
Efficiency ratio (non-GAAP1) for the first quarter of 2025 was
Income Tax
In the first quarter of 2025, the Company’s income tax expense was
Balance Sheet
Assets
Total assets at March 31, 2025 were
Loans
Total loans held for investment were
Deposits
Total deposits at March 31, 2025 were
Federal Home Loan Bank (“FHLB”) and Liquidity
At March 31, 2025 and December 31, 2024, the Company had no overnight FHLB borrowings. There were no outstanding Federal Reserve Discount Window borrowings at March 31, 2025 or December 31, 2024.
At March 31, 2025, the Company had available borrowing capacity from an FHLB secured line of credit of approximately
Asset Quality
Total non-performing assets decreased to
There were four loans totaling
Special mention loans increased by
The Company had
There were
The allowance for credit losses, which is comprised of the allowance for loan losses (“ALL”) and reserve for unfunded loan commitments, totaled
The ALL was
Capital
Tangible book value per common share (non-GAAP1) at March 31, 2025, was
The Company’s preliminary capital ratios exceed the minimums required to be “well-capitalized” at March 31, 2025.
ABOUT CALIFORNIA BANCORP
California BanCorp (NASDAQ: BCAL) is a registered bank holding company headquartered in San Diego, California. California Bank of Commerce, N.A., a national banking association chartered under the laws of the United States (the “Bank”) and regulated by the Office of Comptroller of the Currency, is a wholly owned subsidiary of California BanCorp. Established in 2001 and headquartered in San Diego, California, the Bank offers a range of financial products and services to individuals, professionals, and small to medium-sized businesses through its 14 branch offices and four loan production offices serving Northern and Southern California. The Bank’s solutions-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with its clients. Additional information is available at www.bankcbc.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
In addition to historical information, this release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and other matters that are not historical facts. Examples of forward-looking statements include, among others, statements regarding expectations, plans or objectives for future operations, products or services, loan recoveries, projections, expectations regarding the adequacy of reserves for credit losses and statements about the benefits of the Merger, as well as forecasts relating to financial and operating results or other measures of economic performance. Forward-looking statements reflect management’s current view about future events and involve risks and uncertainties that may cause actual results to differ from those expressed in the forward-looking statement or historical results. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and often include the words or phrases such as “aim,” “can,” “may,” “could,” “predict,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “hope,” “intend,” “plan,” “potential,” “project,” “will likely result,” “continue,” “seek,” “shall,” “possible,” “projection,” “optimistic,” and “outlook,” and variations of these words and similar expressions.
Factors that could cause or contribute to results differing from those in or implied in the forward-looking statements include but are not limited to risks related to the Merger, including the risks that cost savings may be less than anticipated, and difficulties in retaining senior management, employees or customers, the impact of bank failures or other adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks, changes in real estate markets and valuations; the impact on financial markets from geopolitical conflicts; inflation, interest rate, market and monetary fluctuations and general economic conditions, either nationally or locally in the areas in which the Company conducts business; increases in competitive pressures among financial institutions and businesses offering similar products and services; general credit risks related to lending, including changes in the value of real estate or other collateral, the financial condition of borrowers, the effectiveness of our underwriting practices and the risk of fraud; higher than anticipated defaults in the Company’s loan portfolio; changes in management’s estimate of the adequacy of the allowance for credit losses or the factors the Company uses to determine the allowance for credit losses; changes in demand for loans and other products and services offered by the Company; the costs and outcomes of litigation; legislative or regulatory changes or changes in accounting principles, policies or guidelines and other risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) and other documents the Company may file with the SEC from time to time.
Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and other documents the Company files with the SEC from time to time.
Any forward-looking statement made in this release is based only on information currently available to management and speaks only as of the date on which it is made. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements or to conform such forward-looking statements to actual results or to changes in its opinions or expectations, except as required by law.
California BanCorp and Subsidiary
Financial Highlights (Unaudited)
| At or for the Three Months Ended | ||||||||||||
| March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||||||||
| ($ in thousands except share and per share data) | ||||||||||||
| EARNINGS | ||||||||||||
| Net interest income | $ | 42,255 | $ | 44,541 | $ | 20,494 | ||||||
| Reversal of credit losses | $ | (3,776 | ) | $ | (3,835 | ) | $ | (331 | ) | |||
| Noninterest income | $ | 2,566 | $ | 1,004 | $ | 1,413 | ||||||
| Noninterest expense | $ | 24,920 | $ | 26,125 | $ | 14,981 | ||||||
| Income tax expense | $ | 6,824 | $ | 6,483 | $ | 2,322 | ||||||
| Net income | $ | 16,853 | $ | 16,772 | $ | 4,935 | ||||||
| Pre-tax pre-provision income (1) | $ | 19,901 | $ | 19,420 | $ | 6,926 | ||||||
| Adjusted pre-tax pre-provision income (1) | $ | 19,901 | $ | 20,063 | $ | 7,475 | ||||||
| Diluted earnings per share | $ | 0.52 | $ | 0.51 | $ | 0.26 | ||||||
| Shares outstanding at period end | 32,402,140 | 32,265,935 | 18,527,178 | |||||||||
| PERFORMANCE RATIOS | ||||||||||||
| Return on average assets | 1.71 | % | 1.60 | % | 0.86 | % | ||||||
| Adjusted return on average assets (1) | 1.71 | % | 1.64 | % | 0.95 | % | ||||||
| Return on average common equity | 13.18 | % | 13.21 | % | 6.85 | % | ||||||
| Adjusted return on average common equity (1) | 13.18 | % | 13.57 | % | 7.61 | % | ||||||
| Yield on total loans | 6.61 | % | 6.84 | % | 6.02 | % | ||||||
| Yield on interest earning assets | 6.26 | % | 6.48 | % | 5.79 | % | ||||||
| Cost of deposits | 1.59 | % | 1.87 | % | 2.05 | % | ||||||
| Cost of funds | 1.72 | % | 1.99 | % | 2.17 | % | ||||||
| Net interest margin | 4.65 | % | 4.61 | % | 3.80 | % | ||||||
| Efficiency ratio (1) | 55.60 | % | 57.36 | % | 68.38 | % | ||||||
| Adjusted efficiency ratio (1) | 55.60 | % | 55.95 | % | 65.88 | % | ||||||
| As of | ||||||||
| March 31, 2025 | December 31, 2024 | |||||||
| ($ in thousands except share and per share data) | ||||||||
| CAPITAL | ||||||||
| Tangible equity to tangible assets (1) | 10.34 | % | 9.69 | % | ||||
| Book value (BV) per common share | $ | 16.40 | $ | 15.86 | ||||
| Tangible BV per common share (1) | $ | 12.29 | $ | 11.71 | ||||
| ASSET QUALITY | ||||||||
| Allowance for loan losses (ALL) | $ | 45,839 | $ | 50,540 | ||||
| Reserve for unfunded loan commitments | $ | 2,485 | $ | 3,103 | ||||
| Allowance for credit losses (ACL) | $ | 48,324 | $ | 53,643 | ||||
| Allowance for loan losses to nonperforming loans | 2.01 | x | 1.90 | x | ||||
| ALL to total loans held for investment | 1.49 | % | 1.61 | % | ||||
| ACL to total loans held for investment | 1.57 | % | 1.71 | % | ||||
| 30-89 days past due, excluding nonaccrual loans | $ | 5,103 | $ | 12,082 | ||||
| Over 90 days past due, excluding nonaccrual loans | $ | 45 | $ | 150 | ||||
| Special mention loans | $ | 74,421 | $ | 69,339 | ||||
| Special mention loans to total loans held for investment | 2.43 | % | 2.21 | % | ||||
| Substandard loans | $ | 111,786 | $ | 117,598 | ||||
| Substandard loans to total loans held for investment | 3.64 | % | 3.75 | % | ||||
| Nonperforming loans | $ | 22,825 | $ | 26,536 | ||||
| Nonperforming loans to total loans held for investment | 0.74 | % | 0.85 | % | ||||
| Other real estate owned, net | $ | 4,083 | $ | 4,083 | ||||
| Nonperforming assets | $ | 26,908 | $ | 30,619 | ||||
| Nonperforming assets to total assets | 0.68 | % | 0.76 | % | ||||
| END OF PERIOD BALANCES | ||||||||
| Total loans, including loans held for sale | $ | 3,073,399 | $ | 3,156,345 | ||||
| Total assets | $ | 3,983,090 | $ | 4,031,654 | ||||
| Deposits | $ | 3,342,503 | $ | 3,398,760 | ||||
| Loans to deposits | 91.9 | % | 92.9 | % | ||||
| Shareholders’ equity | $ | 531,384 | $ | 511,836 | ||||
(1) Non-GAAP measure. See – GAAP to Non-GAAP reconciliation.
| At or for the Three Months Ended | ||||||||||||
| ALLOWANCE for CREDIT LOSSES | March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||
| ($ in thousands) | ||||||||||||
| Allowance for loan losses | ||||||||||||
| Balance at beginning of period | $ | 50,540 | $ | 53,552 | $ | 22,569 | ||||||
| Reversal of credit losses | (3,158 | ) | (2,867 | ) | (314 | ) | ||||||
| Charge-offs | (3,159 | ) | (154 | ) | (1 | ) | ||||||
| Recoveries | 1,616 | 9 | — | |||||||||
| Net charge-offs | (1,543 | ) | (145 | ) | (1 | ) | ||||||
| Balance, end of period | $ | 45,839 | $ | 50,540 | $ | 22,254 | ||||||
| Reserve for unfunded loan commitments (1) | ||||||||||||
| Balance, beginning of period | $ | 3,103 | $ | 4,071 | $ | 933 | ||||||
| Reversal of credit losses | (618 | ) | (968 | ) | (17 | ) | ||||||
| Balance, end of period | 2,485 | 3,103 | 916 | |||||||||
| Allowance for credit losses | $ | 48,324 | $ | 53,643 | $ | 23,170 | ||||||
| ALL to total loans held for investment | 1.49 | % | 1.61 | % | 1.18 | % | ||||||
| ACL to total loans held for investment | 1.57 | % | 1.71 | % | 1.23 | % | ||||||
| Net charge-offs to average total loans | (0.20 | )% | (0.02 | )% | 0.00 | % | ||||||
(1) Included in “Accrued interest and other liabilities” on the consolidated balance sheet.
California BanCorp and Subsidiary
Balance Sheets (Unaudited)
| March 31, 2025 | December 31, 2024 | |||||||
| ($ in thousands) | ||||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 80,441 | $ | 60,471 | ||||
| Federal funds sold & interest-bearing balances | 358,800 | 327,691 | ||||||
| Total cash and cash equivalents | 439,241 | 388,162 | ||||||
| Debt securities available-for-sale, at fair value (amortized cost of | 131,593 | 142,001 | ||||||
| Debt securities held-to-maturity, at cost (fair value of | 53,194 | 53,280 | ||||||
| Loans held for sale | 4,625 | 17,180 | ||||||
| Loans held for investment: | ||||||||
| Construction & land development | 221,437 | 227,325 | ||||||
| 1-4 family residential | 157,442 | 164,401 | ||||||
| Multifamily | 237,896 | 243,993 | ||||||
| Other commercial real estate | 1,755,962 | 1,767,727 | ||||||
| Commercial & industrial | 672,468 | 710,970 | ||||||
| Other consumer | 23,569 | 24,749 | ||||||
| Total loans held for investment | 3,068,774 | 3,139,165 | ||||||
| Allowance for credit losses - loans | (45,839 | ) | (50,540 | ) | ||||
| Total loans held for investment, net | 3,022,935 | 3,088,625 | ||||||
| Restricted stock at cost | 30,845 | 30,829 | ||||||
| Premises and equipment | 13,154 | 13,595 | ||||||
| Right of use asset | 13,384 | 14,350 | ||||||
| Other real estate owned, net | 4,083 | 4,083 | ||||||
| Goodwill | 111,780 | 111,787 | ||||||
| Intangible assets | 21,323 | 22,271 | ||||||
| Bank owned life insurance | 66,867 | 66,636 | ||||||
| Deferred taxes, net | 36,473 | 43,127 | ||||||
| Accrued interest and other assets | 33,593 | 35,728 | ||||||
| Total assets | $ | 3,983,090 | $ | 4,031,654 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing demand | $ | 1,292,689 | $ | 1,257,007 | ||||
| Interest-bearing NOW accounts | 674,460 | 673,589 | ||||||
| Money market and savings accounts | 1,192,960 | 1,182,927 | ||||||
| Time deposits | 182,394 | 285,237 | ||||||
| Total deposits | 3,342,503 | 3,398,760 | ||||||
| Borrowings | 70,308 | 69,725 | ||||||
| Operating lease liability | 17,142 | 18,310 | ||||||
| Accrued interest and other liabilities | 21,753 | 33,023 | ||||||
| Total liabilities | 3,451,706 | 3,519,818 | ||||||
| Shareholders’ Equity: | ||||||||
| Common stock - 50,000,000 shares authorized, no par value; issued and outstanding 32,402,140 and 32,265,935 at March 31, 2025 and December 31, 2024 | 442,934 | 442,469 | ||||||
| Retained earnings | 92,861 | 76,008 | ||||||
| Accumulated other comprehensive loss - net of taxes | (4,411 | ) | (6,641 | ) | ||||
| Total shareholders’ equity | 531,384 | 511,836 | ||||||
| Total liabilities and shareholders’ equity | $ | 3,983,090 | $ | 4,031,654 | ||||
California BanCorp and Subsidiary
Income Statements - Quarterly and Year-to-Date (Unaudited)
| Three Months Ended | ||||||||||||
| March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||||||||
| ($ in thousands except share and per share data) | ||||||||||||
| INTEREST AND DIVIDEND INCOME | ||||||||||||
| Interest and fees on loans | $ | 50,686 | $ | 54,791 | $ | 28,584 | ||||||
| Interest on debt securities | 1,524 | 1,698 | 1,213 | |||||||||
| Interest on tax-exempted debt securities | 305 | 305 | 306 | |||||||||
| Interest and dividends from other institutions | 4,310 | 5,764 | 1,161 | |||||||||
| Total interest and dividend income | 56,825 | 62,558 | 31,264 | |||||||||
| INTEREST EXPENSE | ||||||||||||
| Interest on NOW, savings, and money market accounts | 11,116 | 12,447 | 6,770 | |||||||||
| Interest on time deposits | 2,063 | 4,179 | 3,021 | |||||||||
| Interest on borrowings | 1,391 | 1,391 | 979 | |||||||||
| Total interest expense | 14,570 | 18,017 | 10,770 | |||||||||
| Net interest income | 42,255 | 44,541 | 20,494 | |||||||||
| Reversal of credit losses (1) | (3,776 | ) | (3,835 | ) | (331 | ) | ||||||
| Net interest income after reversal of credit losses | 46,031 | 48,376 | 20,825 | |||||||||
| NONINTEREST INCOME | ||||||||||||
| Service charges and fees on deposit accounts | 1,186 | 911 | 525 | |||||||||
| Gain (loss) on sale of loans | 577 | (1,095 | ) | 415 | ||||||||
| Bank owned life insurance income | 463 | 823 | 261 | |||||||||
| Servicing and related income on loans | 142 | 157 | 73 | |||||||||
| Other charges and fees | 199 | 208 | 139 | |||||||||
| Total noninterest income | 2,566 | 1,004 | 1,413 | |||||||||
| NONINTEREST EXPENSE | ||||||||||||
| Salaries and employee benefits | 15,864 | 16,074 | 9,610 | |||||||||
| Occupancy and equipment expenses | 2,152 | 2,314 | 1,452 | |||||||||
| Data processing | 1,935 | 1,960 | 1,150 | |||||||||
| Legal, audit and professional | 859 | 817 | 516 | |||||||||
| Regulatory assessments | 722 | 436 | 387 | |||||||||
| Director and shareholder expenses | 404 | 458 | 203 | |||||||||
| Merger and related expenses | — | 643 | 549 | |||||||||
| Intangible assets amortization | 948 | 1,060 | 65 | |||||||||
| Other real estate owned expense | 68 | 220 | 88 | |||||||||
| Other expense | 1,968 | 2,143 | 961 | |||||||||
| Total noninterest expense | 24,920 | 26,125 | 14,981 | |||||||||
| Income before income taxes | 23,677 | 23,255 | 7,257 | |||||||||
| Income tax expense | 6,824 | 6,483 | 2,322 | |||||||||
| Net income | $ | 16,853 | $ | 16,772 | $ | 4,935 | ||||||
| Net income per share - basic | $ | 0.52 | $ | 0.52 | $ | 0.27 | ||||||
| Net income per share - diluted | $ | 0.52 | $ | 0.51 | $ | 0.26 | ||||||
| Weighted average common shares-diluted | 32,698,227 | 32,698,714 | 18,801,716 | |||||||||
| Pre-tax, pre-provision income (2) | $ | 19,901 | $ | 19,420 | $ | 6,926 | ||||||
(1) Included reversal of credit losses on unfunded loan commitments of
(2) Non-GAAP measure. See — GAAP to Non-GAAP reconciliation.
California BanCorp and Subsidiary
Average Balance Sheets and Yield Analysis
(Unaudited)
| Three Months Ended | ||||||||||||||||||||||||||||||||||||
| March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||||||||||||||||||||||||||||||||
| Average Balance | Income/ Expense | Yield/ Cost | Average Balance | Income/ Expense | Yield/ Cost | Average Balance | Income/ Expense | Yield/ Cost | ||||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||||||||
| Total loans | $ | 3,109,722 | $ | 50,686 | 6.61 | % | $ | 3,184,918 | $ | 54,791 | 6.84 | % | $ | 1,909,271 | $ | 28,584 | 6.02 | % | ||||||||||||||||||
| Taxable debt securities | 139,481 | 1,524 | 4.43 | % | 147,895 | 1,698 | 4.57 | % | 126,803 | 1,213 | 3.85 | % | ||||||||||||||||||||||||
| Tax-exempt debt securities (1) | 53,522 | 305 | 2.93 | % | 53,607 | 305 | 2.87 | % | 53,842 | 306 | 2.89 | % | ||||||||||||||||||||||||
| Deposits in other financial institutions | 316,582 | 3,468 | 4.44 | % | 422,032 | 5,123 | 4.83 | % | 54,056 | 716 | 5.33 | % | ||||||||||||||||||||||||
| Fed funds sold/resale agreements | 30,413 | 335 | 4.47 | % | 3,353 | 38 | 4.51 | % | 9,771 | 134 | 5.52 | % | ||||||||||||||||||||||||
| Restricted stock investments and other bank stock | 31,657 | 507 | 6.50 | % | 30,341 | 603 | 7.91 | % | 16,412 | 311 | 7.62 | % | ||||||||||||||||||||||||
| Total interest-earning assets | 3,681,377 | 56,825 | 6.26 | % | 3,842,146 | 62,558 | 6.48 | % | 2,170,155 | 31,264 | 5.79 | % | ||||||||||||||||||||||||
| Total noninterest-earning assets | 318,132 | 326,601 | 139,672 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 3,999,509 | $ | 4,168,747 | $ | 2,309,827 | ||||||||||||||||||||||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
| Interest-bearing NOW accounts | $ | 735,209 | $ | 3,366 | 1.86 | % | $ | 704,017 | $ | 3,784 | 2.14 | % | $ | 359,784 | $ | 2,045 | 2.29 | % | ||||||||||||||||||
| Money market and savings accounts | 1,161,960 | 7,750 | 2.70 | % | 1,192,692 | 8,663 | 2.89 | % | 648,640 | 4,725 | 2.93 | % | ||||||||||||||||||||||||
| Time deposits | 207,519 | 2,063 | 4.03 | % | 359,111 | 4,179 | 4.63 | % | 255,474 | 3,021 | 4.76 | % | ||||||||||||||||||||||||
| Total interest-bearing deposits | 2,104,688 | 13,179 | 2.54 | % | 2,255,820 | 16,626 | 2.93 | % | 1,263,898 | 9,791 | 3.12 | % | ||||||||||||||||||||||||
| Borrowings: | ||||||||||||||||||||||||||||||||||||
| FHLB advances | — | — | — | % | — | — | — | % | 50,593 | 708 | 5.63 | % | ||||||||||||||||||||||||
| Subordinated debt | 70,027 | 1,391 | 8.06 | % | 69,420 | 1,391 | 7.97 | % | 17,878 | 271 | 6.10 | % | ||||||||||||||||||||||||
| Total borrowings | 70,027 | 1,391 | 8.06 | % | 69,420 | 1,391 | 7.97 | % | 68,471 | 979 | 5.75 | % | ||||||||||||||||||||||||
| Total interest-bearing liabilities | 2,174,715 | 14,570 | 2.72 | % | 2,325,240 | 18,017 | 3.08 | % | 1,332,369 | 10,770 | 3.25 | % | ||||||||||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits (2) | 1,255,883 | 1,283,591 | 661,265 | |||||||||||||||||||||||||||||||||
| Other liabilities | 50,368 | 55,007 | 26,430 | |||||||||||||||||||||||||||||||||
| Shareholders’ equity | 518,543 | 504,909 | 289,763 | |||||||||||||||||||||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 3,999,509 | $ | 4,168,747 | $ | 2,309,827 | ||||||||||||||||||||||||||||||
| Net interest spread | 3.54 | % | 3.40 | % | 2.54 | % | ||||||||||||||||||||||||||||||
| Net interest income and margin | $ | 42,255 | 4.65 | % | $ | 44,541 | 4.61 | % | $ | 20,494 | 3.80 | % | ||||||||||||||||||||||||
| Cost of deposits | $ | 3,360,571 | $ | 13,179 | 1.59 | % | $ | 3,539,411 | $ | 16,626 | 1.87 | % | $ | 1,925,163 | $ | 9,791 | 2.05 | % | ||||||||||||||||||
| Cost of funds | $ | 3,430,598 | $ | 14,570 | 1.72 | % | $ | 3,608,831 | $ | 18,017 | 1.99 | % | $ | 1,993,634 | $ | 10,770 | 2.17 | % | ||||||||||||||||||
(1) Tax-exempt debt securities yields are presented on a tax equivalent basis using a
(2) Average noninterest-bearing deposits represent
California BanCorp and Subsidiary
GAAP to Non-GAAP Reconciliation
(Unaudited)
The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: (1) adjusted net income (loss), (2) efficiency ratio, (3) adjusted efficiency ratio, (4) pre-tax pre-provision income, (5) adjusted pre-tax pre-provision income, (6) average tangible common equity, (7) adjusted return on average assets, (8) adjusted return on average equity, (9) return on average tangible common equity, (10) adjusted return on average tangible common equity, (11) tangible common equity, (12) tangible assets, (13) tangible common equity to tangible asset ratio, and (14) tangible book value per common share. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures.
| Three Months Ended | ||||||||||||
| March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||||||||
| ($ in thousands) | ||||||||||||
| Adjusted net income | ||||||||||||
| Net income | $ | 16,853 | $ | 16,772 | $ | 4,935 | ||||||
| Add: After-tax merger and related expenses (1) | — | 453 | 547 | |||||||||
| Adjusted net income (non-GAAP) | $ | 16,853 | $ | 17,225 | $ | 5,482 | ||||||
| Efficiency Ratio | ||||||||||||
| Noninterest expense | $ | 24,920 | $ | 26,125 | $ | 14,981 | ||||||
| Deduct: Merger and related expenses | — | 643 | 549 | |||||||||
| Adjusted noninterest expense | 24,920 | 25,482 | 14,432 | |||||||||
| Net interest income | 42,255 | 44,541 | 20,494 | |||||||||
| Noninterest income | 2,566 | 1,004 | 1,413 | |||||||||
| Total net interest income and noninterest income | $ | 44,821 | $ | 45,545 | $ | 21,907 | ||||||
| Efficiency ratio (non-GAAP) | 55.6 | % | 57.4 | % | 68.4 | % | ||||||
| Adjusted efficiency ratio (non-GAAP) | 55.6 | % | 55.9 | % | 65.9 | % | ||||||
| Pre-tax pre-provision income | ||||||||||||
| Net interest income | $ | 42,255 | $ | 44,541 | $ | 20,494 | ||||||
| Noninterest income | 2,566 | 1,004 | 1,413 | |||||||||
| Total net interest income and noninterest income | 44,821 | 45,545 | 21,907 | |||||||||
| Less: Noninterest expense | 24,920 | 26,125 | 14,981 | |||||||||
| Pre-tax pre-provision income (non-GAAP) | 19,901 | 19,420 | 6,926 | |||||||||
| Add: Merger and related expenses | — | 643 | 549 | |||||||||
| Adjusted pre-tax pre-provision income (non-GAAP) | $ | 19,901 | $ | 20,063 | $ | 7,475 | ||||||
(1) After-tax merger and related expenses are presented using a
| Return on Average Assets, Equity, and Tangible Equity | ||||||||||||
| Net income | $ | 16,853 | $ | 16,772 | $ | 4,935 | ||||||
| Adjusted net income (non-GAAP) | $ | 16,853 | $ | 17,225 | $ | 5,482 | ||||||
| Average assets | $ | 3,999,509 | $ | 4,168,747 | $ | 2,309,827 | ||||||
| Average shareholders’ equity | 518,543 | 504,909 | 289,763 | |||||||||
| Less: Average intangible assets | 133,567 | 135,064 | 38,964 | |||||||||
| Average tangible common equity (non-GAAP) | $ | 384,976 | $ | 369,845 | $ | 250,799 | ||||||
| Return on average assets | 1.71 | % | 1.60 | % | 0.86 | % | ||||||
| Adjusted return on average assets (non-GAAP) | 1.71 | % | 1.64 | % | 0.95 | % | ||||||
| Return on average equity | 13.18 | % | 13.21 | % | 6.85 | % | ||||||
| Adjusted return on average equity (non-GAAP) | 13.18 | % | 13.57 | % | 7.61 | % | ||||||
| Return on average tangible common equity (non-GAAP) | 17.75 | % | 18.04 | % | 7.91 | % | ||||||
| Adjusted return on average tangible common equity (non-GAAP) | 17.75 | % | 18.53 | % | 8.79 | % |
| March 31, 2025 | December 31, 2024 | |||||||
| ($ in thousands except share and per share data) | ||||||||
| Tangible Common Equity Ratio/Tangible Book Value Per Share | ||||||||
| Shareholders’ equity | $ | 531,384 | $ | 511,836 | ||||
| Less: Intangible assets | 133,103 | 134,058 | ||||||
| Tangible common equity (non-GAAP) | $ | 398,281 | $ | 377,778 | ||||
| Total assets | $ | 3,983,090 | $ | 4,031,654 | ||||
| Less: Intangible assets | 133,103 | 134,058 | ||||||
| Tangible assets (non-GAAP) | $ | 3,849,987 | $ | 3,897,596 | ||||
| Equity to asset ratio | 13.34 | % | 12.70 | % | ||||
| Tangible common equity to tangible asset ratio (non-GAAP) | 10.34 | % | 9.69 | % | ||||
| Book value per share | $ | 16.40 | $ | 15.86 | ||||
| Tangible book value per share (non-GAAP) | $ | 12.29 | $ | 11.71 | ||||
| Shares outstanding | 32,402,140 | 32,265,935 | ||||||
INVESTOR RELATIONS CONTACT
Kevin Mc Cabe
California Bank of Commerce, N.A.
kmccabe@bankcbc.com
818.637.7065
