CALIFORNIA BANCORP REPORTS THIRD QUARTER EARNINGS, HIGHLIGHTED BY STEADY LOAN GROWTH AND STRONG DEPOSIT GROWTH

Loan and deposit growth accompanied lower quarterly earnings, a narrower net interest margin and higher credit-loss provisions.

Rhea-AI Summary

California BanCorp (NASDAQ: BCAL) reported third-quarter 2026 net income of $14.0 million, down from both the preceding quarter and a year earlier. Diluted earnings were $0.43 per share, versus $0.44 in the second quarter and $0.48 a year earlier.

Loans, including loans held for sale, rose 1.7% to $3.16 billion from June 30, while deposits increased 3.5% to $3.48 billion at September 30. Net interest income reached $44.1 million, but net interest margin narrowed to 4.61% from 4.71%. The provision for credit losses increased to $3.2 million from $714 thousand, and net charge-offs totaled $4.6 million, primarily involving two commercial and industrial loans.

The company redeemed $35.0 million of subordinated debt and repurchased $4.6 million of shares. Preliminary capital ratios exceeded the minimums for the regulatory well-capitalized category.

14 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 20 points

How the balance works

Positive

• Moderate pointTotal deposits increased $117.4 million, or 3.5%, to $3.48 billion from June 30, 2026.
• Moderate pointLoans, including loans held for sale, increased $53.3 million, or 1.7%, to $3.16 billion from June 30.
• Moderate pointNet interest income rose to $44.1 million in third-quarter 2026 from $43.4 million in the prior quarter.
• Moderate pointPre-tax, pre-provision income, a non-GAAP measure, increased 5.27% to $21.6 million from the prior quarter.
• Moderate pointSubordinated debt redemption retired $35.0 million at par on September 1, 2026. 5% of market cap

9 minor points

• Minor pointNoninterest income increased $351 thousand to $1.9 million from the second quarter.
• Minor pointShare repurchases totaled 209,348 shares at an average $21.81, costing $4.6 million in third-quarter 2026.
• Minor pointPreliminary September 30 capital ratios exceeded well-capitalized minimums, the highest regulatory capital category.
• Minor pointEfficiency ratio, a non-GAAP measure, improved to 53.00% from 54.22% in the prior quarter.
• Minor pointSalaries and employee benefits decreased $157 thousand to $15.4 million from the prior quarter.
• Minor pointOther real estate owned expenses decreased $197 thousand from the prior quarter, primarily reflecting lower holding costs.
• Minor pointIncome tax expense fell to $4.4 million from $5.5 million; purchased tax credits provided a $725 thousand benefit.
• Minor pointTotal assets increased $80.4 million, or 2.0%, to $4.11 billion from June 30, 2026.
• Minor pointSan Francisco loan production office opened October 1, 2026, expanding the commercial banking presence in Northern California.

Negative

• Moderate pointThird-quarter net income fell to $14.0 million from $14.3 million sequentially and $15.7 million a year earlier.
• Moderate pointCredit-loss provision increased to $3.2 million from $714 thousand in the prior quarter.
• Moderate pointNet charge-offs totaled $4.6 million, primarily from fully charging off two commercial and industrial loans.
• Minor pointDiluted earnings fell to $0.43 from $0.44 sequentially and $0.48 in third-quarter 2025.
• Minor pointNet interest margin narrowed to 4.61% from 4.71% in the prior quarter.

15 minor points

• Minor pointNonperforming loans increased $407 thousand, or 4.6%, to $9.3 million from June 30, 2026.
• Minor pointCredit-loss allowance fell to 1.13% of loans held for investment from 1.18% at June 30.
• Minor pointLoan-loss allowance fell to 1.07% of loans held for investment from 1.13% at June 30.
• Minor pointReturn on average assets declined to 1.35% from 1.43% in the prior quarter.
• Minor pointReturn on average common equity declined to 9.45% from 9.84% in the prior quarter.
• Minor pointReturn on average tangible common equity, a non-GAAP measure, declined to 12.07% from 12.62% sequentially.
• Minor pointNoninterest-bearing deposits represented 36.3% of total deposits, down from 37.4% at June 30.
• Minor pointDeposit costs increased to 1.33% from 1.31% in the prior quarter.
• Minor pointCost of funds increased to 1.39% from 1.38% in the prior quarter.
• Minor pointAverage earning-asset yield declined to 5.88% from 5.97% in the prior quarter.
• Minor pointAverage loan yield declined to 6.29% from 6.34%; nonaccrual interest reversals reduced yield by 5 basis points.
• Minor pointInterest expense increased $581 thousand from the prior quarter.
• Minor pointAverage borrowing costs rose to 10.04% from 8.10%, primarily reflecting fair-value adjustment amortization upon debt redemption.
• Minor pointLegal, audit and professional expense increased $229 thousand from the prior quarter.
• Minor pointTangible book value per share, a non-GAAP measure, declined $0.07 to $14.22 from June 30.

News Explained

California BanCorp says its downtown San Francisco loan production office opened October 1, 2026, completing a previously announced plan to establish the location. The opening adds a Northern California commercial-banking site.

Sources and calculations

• California BanCorp third-quarter 2026 earnings release (2026-10-28)
• California Bank of Commerce San Francisco loan production office announcement (2026-09-30)

Key Figures

Net income: $14.0 million Diluted EPS: $0.43 per diluted share Net interest margin: 4.61% +4 more

Net income

$14.0 million

Q3 2026; compared with $14.3 million in Q2 2026 and $15.7 million in Q3 2025

Diluted EPS

$0.43 per diluted share

Q3 2026; compared with $0.44 in Q2 2026 and $0.48 in Q3 2025

Net interest margin

4.61%

Q3 2026; compared with 4.71% in the prior quarter

Provision for credit losses

$3.2 million

Q3 2026; compared with $714 thousand in the prior quarter

Total loans

$3.16 billion

At September 30, 2026; up $53.3 million, or 1.7%, from June 30, 2026

Total deposits

$3.48 billion

At September 30, 2026; up $117.4 million, or 3.5%, from June 30, 2026

Share repurchases

209,348 shares; $4.6 million total cost

Under the stock repurchase program in Q3 2026

Previous Earnings Reports

2 past events · Latest: Apr 28

Same Type 2 events

1. Apr 28

   Quarterly earnings

   24h Move

   +0.4%

   Reported Q1 net income and a provision reversal alongside quarterly loan and margin metrics.

2. Jan 28

   Quarterly earnings

   24h Move

   -0.3%

   Reported Q4 and full-year net income with quarterly balance-sheet and dividend metrics.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net interest margin, allowance for credit losses, nonperforming loans, sofr

4 terms

net interest margin financial

"Net interest margin of 4.61%, compared with 4.71% in the prior quarter."

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

allowance for credit losses financial

"Allowance for credit losses (“ACL”) was 1.13% of total loans held for investment"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

nonperforming loans financial

"Nonperforming loans were $9.3 million, up $407 thousand, or 4.6%"

Nonperforming loans are loans on which borrowers have stopped making the scheduled interest or principal payments for an extended period (commonly 90 days or more) or are otherwise in serious danger of default. Think of them as IOUs that aren’t being repaid: they tie up a lender’s money, reduce future interest income, and force the lender to hold extra reserves or take losses. For investors, a rising share of nonperforming loans signals weakening credit quality, higher potential losses, and greater risk to a bank’s profitability and capital.

sofr financial

"equal to the then current 90-day SOFR plus 2.86%, until maturity"

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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San Diego, Calif., Oct. 28, 2026 (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 third quarter of 2026.

The Company reported net income of $14.0 million, or $0.43 per diluted share, for the third quarter of 2026, compared to $14.3 million, or $0.44 per diluted share for the second quarter of 2026, and $15.7 million, or $0.48 per diluted share for the third quarter of 2025.

“Our third quarter results reflect the continued momentum we are building across our franchise, with steady loan growth and strong deposit growth throughout our statewide markets. We remain focused on disciplined credit management, particularly in a changing interest rate environment, while maintaining our commitment to relationship banking. Our deposit growth is especially encouraging, reflecting the strength of our business model, the deepening of existing client relationships, and our ability to attract new clients across California,” said David Rainer, Chairman and CEO of the Company and Bank.

“We are excited about our third quarter financial results, which reflect continued execution of our relationship banking strategy in each of our California markets. To expand our commercial banking presence in Northern California, we opened a new loan production office in downtown San Francisco, California on October 1, 2026,” said Richard Hernandez, President of the Company and Bank. “We are seeing encouraging levels of business development activity, supported by a solid pipeline of new opportunities and the dedication of our teams in each of our markets. Our focus remains on attracting high-quality clients, enhancing relationships across our existing client base, and building a foundation for sustainable, long-term growth.”

Third Quarter 2026 Highlights

• Net income of $14.0 million or $0.43 diluted earnings per share for the third quarter.
• Net interest margin of 4.61%, compared with 4.71% in the prior quarter.
• Provision for credit losses of $3.2 million for the third quarter, compared with $714 thousand for the prior quarter.
• Return on average assets of 1.35%, compared with 1.43% in the prior quarter.
• Return on average common equity of 9.45%, compared with 9.84% in the prior quarter.
• Return on average tangible common equity (non-GAAP¹) of 12.07%, compared with 12.62% in the prior quarter.
• Total loans, including loans held for sale, increased to $3.16 billion at September 30, 2026, up $53.3 million, or 1.7%, from $3.11 billion at June 30, 2026.
• Nonperforming loans were $9.3 million, up $407 thousand, or 4.6%, from June 30, 2026.
• Allowance for credit losses (“ACL”) was 1.13% of total loans held for investment at September 30, 2026, compared to 1.18% at June 30, 2026; allowance for loan losses ("ALL") was 1.07% of total loans held for investment at September 30, 2026, compared to 1.13% at June 30, 2026.
• Noninterest-bearing deposits represented 36.3% of total deposits, compared with 37.4% of total deposits at June 30, 2026.
• Total deposits, increased to $3.48 billion at September 30, 2026, up $117.4 million, or 3.5%, from $3.36 billion at June 30, 2026.
• Cost of deposits was 1.33%, compared to 1.31% in the prior quarter.
• Cost of funds was 1.39%, compared with 1.38% in the prior quarter.
• Redeemed all $35.0 million of its 3.50% fixed-to-floating rate subordinated debt due September 1, 2031, at par value; the interest rate was scheduled to change on September 1, 2026 to a quarterly variable rate equal to the then current 90-day SOFR plus 2.86%, until maturity.
• Repurchased 209,348 shares of common stock at an average price of $21.81 and a total cost of $4.6 million under the stock repurchase program in the third quarter of 2026, compared to 102,594 shares of common stock at an average price of $19.46 and a total cost of $2.0 million in the second quarter of 2026.
• Dividend of $0.12 per common share declared in July 2026 and paid in October 2026, totaling $3.8 million.
• Tangible book value per common share (non-GAAP¹) of $14.22 at September 30, 2026, down $0.07 from $14.29 at June 30, 2026.
• The Company’s preliminary capital ratios at September 30, 2026 exceeded the minimums required to be “well-capitalized,” the highest regulatory capital category.

Third Quarter Operating Results

Net Income

Net income for the third quarter of 2026 was $14.0 million, or $0.43 per diluted share, compared with $14.3 million, or $0.44 per diluted share in the second quarter of 2026. Pre-tax, pre-provision income (non-GAAP¹) for the third quarter was $21.6 million, an increase of $1.1 million, or 5.27%, from the prior quarter. The net income and diluted earnings per share decreases were largely driven by higher provision for credit losses and noninterest expense, partially offset by higher net interest income and noninterest income.

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2026 was $44.1 million, compared with $43.4 million in the prior quarter. The increase in net interest income was primarily due to a $1.4 million increase in total interest and dividend income, partially offset by a $581 thousand increase in total interest expense in the third quarter of 2026, as compared with the prior quarter. The increase in net interest income was also impacted by one additional day in the current quarter compared with the prior quarter.

During the third quarter of 2026, total interest income increased by $1.4 million. The increase was primarily driven by a $1.2 million increase in total loan interest income, which included a decrease of $18 thousand in accretion from the net purchase accounting discounts on acquired loans and $366 thousand reversals of interest income on loans placed on nonaccrual. In addition, total debt securities income increased $113 thousand, and interest income from deposits in other financial institutions increased $497 thousand. These increases were partially offset by a decrease of $353 thousand in dividend income from restricted stock investments and other bank stock and a decrease of $123 thousand in interest income from Fed funds sold/resale agreements. The increase in interest income was mainly due to the growth in average interest-earning assets, partially offset by a decline of 9 basis points in the yield on average total interest-earning assets as a result of changes in asset mix, and reversals of interest associated with nonaccrual loans. Average interest-earning assets were positively impacted by increases in average total loans of $68.1 million, average total debt securities of $1.6 million, and average deposits in other financial institutions of $51.0 million, partially offset by a decrease in average Fed funds sold/resale agreements of $12.2 million. The increase in interest expense for the third quarter of 2026 was primarily due to a $682 thousand increase in interest expense on average total interest-bearing deposits, the result of higher average total interest-bearing deposits of $95.5 million, partially offset by a $101 thousand decrease in borrowing expense from the redemption of the $35 million subordinated debt on September 1, 2026.

Net interest margin for the third quarter of 2026 was 4.61%, compared with 4.71% in the prior quarter. The decrease in the net interest margin of 10 basis points was primarily driven by a decline of 9 basis points in the total interest-earning assets yield, coupled with an increase of 1 basis point in the cost of funds. The yield on total average interest-earning assets in the third quarter of 2026 was 5.88%, compared with 5.97% in the prior quarter. The yield on average total loans in the third quarter of 2026 was 6.29%, a decrease of 5 basis points from 6.34% in the prior quarter. The yield on average total loans in the third quarter of 2026 included the impact of the nonaccrual interest reversals noted above, which decreased the overall loan yield by 5 basis points. This compares to an increase of 7 basis points in overall total loan yield in the prior quarter from cash interest collection on the payoff of two nonaccrual loans, net of interest reversals on loans placed on nonaccrual. Accretion income from the net purchase accounting discounts on acquired loans was $3.3 million, increasing the yield on average total loans by 42 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased interest expense by $389 thousand, the combination of which increased the net interest margin by 31 basis points in the third quarter of 2026. In the prior quarter, accretion income from the net purchase accounting discounts on acquired loans was $3.3 million, increasing the yield on average total loans by 44 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased the interest expense by $389 thousand, the combination of which increased the net interest margin by 32 basis points.

Cost of funds for the third quarter of 2026 was 1.39%, an increase of 1 basis point from 1.38% in the prior quarter. The increase was a result of an increase of 1 basis point in the cost of average total interest-bearing deposits, driven primarily by changes in the Company’s deposit mix and increased competition for deposits driving market deposit rates upward in the third quarter of 2026. The amortization expense of $389 thousand from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium contributed 4 basis points to the cost of funds. Average noninterest-bearing demand deposits increased $17.4 million to $1.24 billion and represented 36.0% of total average deposits for the third quarter of 2026, compared with $1.22 billion and 36.7%, respectively, in the prior quarter; average interest-bearing deposits increased $95.5 million to $2.21 billion during the third quarter of 2026. The total cost of deposits in the third quarter of 2026 was 1.33%, compared with 1.31% in the prior quarter.

Average total borrowings decreased $10.9 million to $23.5 million in the third quarter of 2026, primarily due to the redemption of the $35.0 million subordinated debt in September 2026. The average cost of total borrowings was 10.04% for the third quarter of 2026, up from 8.10% in the prior quarter. The increase in cost of total borrowings during the quarter was primarily the result of amortization of the remaining fair value adjustment associated with the redemption of the subordinated debt.

Provision for Credit Losses

The Company recorded a provision for credit losses of $3.2 million for the third quarter of 2026, compared with $714 thousand in the prior quarter. The provision for credit losses in the third quarter of 2026 was comprised of a $3.2 million provision for credit losses on loans held for investment, partially offset by a $16 thousand reversal of provision for credit losses for unfunded loan commitments. Total unfunded loan commitments decreased by $34.5 million to $862.4 million at September 30, 2026, compared to $896.9 million in unfunded loan commitments at June 30, 2026.

The provision for credit losses for loans held for investment in the third quarter of 2026 was $3.2 million, an increase of $2.2 million from $1.1 million in the prior quarter. The increase reflected $4.6 million in net charge-offs, primarily related to the full charge-off of two commercial and industrial loans, updates to the reasonable and supportable economic forecasts for California, revised scenario weighting assumptions, continued loan growth, and changes in portfolio composition, partially offset by a decline in accruing substandard and special mention loan balances and refinements to the qualitative factors. The Company’s management continues to monitor macroeconomic variables including changes in interest rates, uncertainty in the current economic environment, and elevated geopolitical risks related to ongoing conflicts in the Middle East. Management believes it has appropriately provisioned for the current environment.

Noninterest Income

Total noninterest income was $1.9 million in the third quarter of 2026, an increase of $351 thousand compared with $1.6 million in the second quarter of 2026. Other charges and fees increased $260 thousand in the third quarter due primarily to a reduction in loss from equity investments of $30 thousand in the third quarter of 2026 compared to a loss from equity investments of $251 thousand in the prior quarter.

Noninterest Expense

Total noninterest expense for the third quarter of 2026 was $24.4 million, an increase of $57 thousand, compared with $24.3 million in the prior quarter. Salaries and employee benefits decreased $157 thousand during the third quarter of 2026 to $15.4 million primarily due to lower overall payroll tax and incentive accruals, partially offset by a decrease in loan origination costs deferred based on decreased loan origination activity. Legal, audit and professional expense increased $229 thousand during the third quarter of 2026. Other real estate owned expenses decreased $197 thousand in the third quarter of 2026 primarily from overall lower holding costs.

Efficiency ratio (non-GAAP¹) for the third quarter of 2026 was 53.00%, compared with 54.22% in the prior quarter.

Income Tax

In the third quarter of 2026, the Company’s income tax expense was $4.4 million, compared with $5.5 million for the second quarter of 2026. The effective rate was 23.9% for the third quarter of 2026 and 27.9% for the second quarter of 2026. The decrease in income tax expense and the effective tax rate for the third quarter of 2026 was primarily driven by a $725 thousand tax benefit recognized from tax credits purchased in the third quarter of 2026.

Balance Sheet

Assets

Total assets at September 30, 2026 were $4.11 billion, an increase of $80.4 million or 2.0% from June 30, 2026. The increase in total assets from the prior quarter was primarily related to an increase of $53.3 million in loans, including loans held for sale, a $10.1 million increase in available-for-sale debt securities, a $4.4 million increase in deferred taxes and a $9.1 million increase in accrued interest and other assets, primarily driven by the tax credits purchased in the third quarter.

Loans

Total loans held for investment (“LHFI”) were $3.15 billion at September 30, 2026, an increase of $53.8 million, compared with June 30, 2026. During the third quarter of 2026, new loans totaled $241.5 million, consisting of $159.9 million of new loan fundings, $10.8 million of Community Reinvestment Act (“CRA”) eligible small business loan participation purchases to support the Company’s CRA strategy and small business lending objectives, and $70.8 million of short-term participation purchases in fully collateralized mortgage loans. Separately, advances on existing loans totaled $81.2 million. These increases were partially offset by $124.7 million loan payoffs, paydowns and others changes totaling $76.7 million, $4.6 million of full charge-offs of two commercial and industrial loans, and $62.8 million of short-term participation purchases in fully collateralized mortgage loans that were sold to approved third-party mortgage brokers or investors. Total loans secured by real estate increased by $44.1 million, of which construction and land development loans increased $19.9 million, other commercial real estate loans increased $19.1 million; multifamily loans increased $8.9 million, and commercial and industrial loans increased $10.8 million, including $34.5 million of aforementioned participation purchases in mortgage loans through approved warehouse facilities and $10.8 million of aforementioned participation purchases in CRA-eligible small business loans; partially offset by 1-4 family residential and consumer loans decreasing by $3.8 million and $1.1 million, respectively.

The Company had $15.4 million in loans held for sale at September 30, 2026, consisting entirely of consumer solar loans, compared with $15.8 million at June 30, 2026.

Deposits

Total deposits at September 30, 2026 were $3.48 billion, an increase of $117.4 million from June 30, 2026. The increase was primarily due to increases in interest-bearing non-maturity deposits of $115.5 million and noninterest-bearing demand deposits of $4.9 million, partially offset by a decrease in non-brokered time deposits of $3.1 million. Noninterest-bearing demand deposits at September 30, 2026, were $1.26 billion, or 36.3% of total deposits, compared with $1.26 billion, or 37.4% of total deposits at June 30, 2026. At September 30, 2026, total interest-bearing deposits were $2.21 billion, compared with $2.10 billion at June 30, 2026. At September 30, 2026, the Company did not have any brokered time deposits. The Company offers the Insured Cash Sweep product and Certificate of Deposit Account Registry Service, each of which provides reciprocal deposit placement services to fully qualified large customer deposits for FDIC insurance among other participating banks. Total reciprocal deposits were $740.3 million, or 21.3% of total deposits at September 30, 2026, compared with $705.2 million, or 21.0% of total deposits at June 30, 2026.

Federal Home Loan Bank ("FHLB") and Liquidity

At September 30, 2026 and June 30, 2026, the Company had no FHLB or Federal Reserve Discount Window borrowings.

At September 30, 2026, the Company had available borrowing capacity from an FHLB secured line of credit of approximately $752.5 million and available borrowing capacity from the Federal Reserve Discount Window of approximately $317.5 million. The Company also had available borrowing capacity from four unsecured credit lines from correspondent banks of approximately $90.5 million at September 30, 2026, with no outstanding borrowings. Total available borrowing capacity was $1.16 billion at September 30, 2026. Additionally, the Company had unpledged liquid securities at fair value of approximately $215.7 million and cash and cash equivalents of $266.7 million at September 30, 2026.

During the third quarter of 2026, the Company redeemed all $35.0 million of its 3.50% fixed-to-floating rate subordinated debt due September 1, 2031, at par value. Starting in September 2026, the interest rate on that subordinated debt was scheduled to transition from a fixed rate to a quarterly variable rate equal to the then current 90-day SOFR plus 2.86%, through the contractual maturity date of September 1, 2031.

Asset Quality

Total non-performing assets were $17.9 million, or 0.44% of total assets at September 30, 2026, an increase of $407 thousand, or 2.3%, from $17.5 million, or 0.44% of total assets, at June 30, 2026. Total non-performing loans were $9.3 million, or 0.30% of total loans held for investment at September 30, 2026, compared with $8.9 million, or 0.29% of total loans held for investment at June 30, 2026.

Total nonperforming loans increased $407 thousand, or 4.6%, during the third quarter of 2026 primarily driven by the downgrades of a commercial and industrial loan and a commercial real estate loan. These loans are classified as individually evaluated, collateral-dependent loans and no allowance for loan loss was recorded at September 30, 2026, as full repayments are anticipated.

Special mention loans decreased by $8.4 million during the third quarter of 2026 to $40.3 million at September 30, 2026. The decrease in the special mention loans was due mostly to $5.9 million of loans downgraded to substandard, coupled with $5.8 million in upgrades to pass rating, $1.2 million in net paydowns, and $356 thousand in payoffs, partially offset by $4.9 million of loans downgraded from pass rating.

Substandard loans decreased by $5.5 million during the third quarter of 2026 to $58.7 million at September 30, 2026. The decrease in the substandard loans was due primarily to full charge-offs of two commercial and industrial loans totaling $4.6 million from one relationship, coupled with $3.3 million in upgrades to pass rating, $2.0 million in payoffs and $1.5 million in net paydowns, partially offset by $5.9 million of loans downgraded from special mention. The aforementioned charge-offs are related to a long-term, online advertisement client. Challenges related to unauthorized third-party use of the client’s proprietary software caused a rapid, material decline in revenue, ultimately leading the company to cease operations with limited recovery opportunities.

The Company had no LHFI that were over 90 days past due and still accruing interest at September 30, 2026 and June 30, 2026, respectively.

Loan delinquencies (30-89 days past due, excluding nonaccrual loans) totaled $80 thousand at September 30, 2026, compared with $4.9 million in such loan delinquencies at June 30, 2026. The decrease was primarily due to $2.4 million of loans brought to current, $2.0 million in payoffs, and $372 thousand of a commercial and industrial loan downgraded to nonaccrual, partially offset by $6.0 thousand of loans that became delinquent during the third quarter of 2026.

The allowance for credit losses, which is comprised of the ALL and reserve for unfunded loan commitments, totaled $35.5 million at September 30, 2026, compared with $36.6 million at June 30, 2026. The $1.2 million decrease in the allowance for credit losses included a $3.2 million provision for credit losses for the loan portfolio, net charge-offs of $4.6 million, a $224 thousand initial gross-up allowance related to purchased seasoned loans, and a $16 thousand reversal of provision for credit losses for unfunded loan commitments for the quarter ended September 30, 2026.

The ALL was $33.7 million, or 1.07% of total loans held for investment at September 30, 2026, compared with $34.9 million, or 1.13% at June 30, 2026.

Capital

Tangible book value per common share (non-GAAP¹) at September 30, 2026 was $14.22, compared with $14.29 at June 30, 2026. In the third quarter of 2026, tangible book value was primarily impacted by net income of $14.0 million for the third quarter, and stock-based compensation activity. This was offset by an increase in net of tax unrealized losses on available-for-sale debt securities, the Company’s common stock repurchase program activity, and cash dividends, which reduced the tangible book value per common share by $0.37, $0.14 and $0.12, respectively. Other comprehensive losses related to net of tax unrealized losses on available-for-sale debt securities increased by $11.8 million to $17.1 million at September 30, 2026, from $5.3 million at June 30, 2026. The increase in the net of tax unrealized losses on available-for-sale debt securities was attributable to non-credit related factors, including a decrease in bond prices at the long end of the yield curve and the general interest rate environment, and growth in the available-for-sale debt securities. Tangible common equity (non-GAAP¹) as a percentage of total tangible assets (non-GAAP¹) at September 30, 2026, decreased to 11.42% from 11.77% in the prior quarter, and net of tax unrealized losses on available-for-sale debt securities as a percentage of tangible common equity (non-GAAP¹) at September 30, 2026 increased to 3.8% from 1.2% in the prior quarter.

The Company’s preliminary capital ratios exceed the minimums required to be “well-capitalized” at September 30, 2026.

Stock Repurchase Program

During the third quarter of 2026, the Company repurchased 209,348 shares of its common stock at an average price of $21.81 and a total cost of $4.6 million under the stock repurchase program, compared to 102,594 shares of common stock at an average price of $19.46 and a total cost of $2.0 million in the second quarter of 2026. For the nine months ended September 30, 2026, the Company repurchased 721,857 shares of its common stock at an average price of $19.36 and a total cost of $14.0 million under the stock repurchase program. The remaining maximum number of shares authorized to be repurchased under this program was 666,215 shares at September 30, 2026.

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 the 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 including 12 commercial banking offices serving 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.californiabankofcommerce.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, and expectations regarding the adequacy of reserves for credit losses, 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 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 possibility that the Company may reduce or discontinue the payment of dividends on its common stock; the possibility that the Company may discontinue, reduce or otherwise limit the level of repurchases of its common stock that it may make from time to time pursuant to its stock repurchase program; 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, 2025, 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, 2025, 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												At or for the Nine Months Ended
		September 30, 2026				June 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
EARNINGS		($ in thousands except share and per share data)
Net interest income		$	44,144			$	43,354			$	42,515			$	129,582			$	126,187
Provision for (reversal of) credit losses		$	3,215			$	714			$	(15	)		$	3,548			$	(4,425	)
Noninterest income		$	1,902			$	1,551			$	2,668			$	5,590			$	8,090
Noninterest expense		$	24,403			$	24,346			$	23,382			$	74,261			$	73,135
Income tax expense		$	4,412			$	5,545			$	6,132			$	15,256			$	18,931
Net income		$	14,016			$	14,300			$	15,684			$	42,107			$	46,636
Pre-tax pre-provision income (1)		$	21,643			$	20,559			$	21,801			$	60,911			$	61,142
Diluted earnings per share		$	0.43			$	0.44			$	0.48			$	1.30			$	1.42
Shares outstanding at period end			31,952,352				32,110,117				32,443,056				31,952,352				32,443,056
PERFORMANCE RATIOS
Return on average assets			1.35	%			1.43	%			1.54	%			1.38	%			1.57	%
Return on average common equity			9.45	%			9.84	%			11.24	%			9.64	%			11.61	%
Yield on total loans			6.29	%			6.34	%			6.50	%			6.26	%			6.56	%
Yield on interest earning assets			5.88	%			5.97	%			6.08	%			5.86	%			6.18	%
Cost of deposits			1.33	%			1.31	%			1.59	%			1.31	%			1.59	%
Cost of funds			1.39	%			1.38	%			1.69	%			1.38	%			1.71	%
Net interest margin			4.61	%			4.71	%			4.52	%			4.60	%			4.59	%
Efficiency ratio (1)			53.00	%			54.22	%			51.75	%			54.94	%			54.47	%

		As of
		September 30, 2026				June 30, 2026				December 31, 2025
CAPITAL		($ in thousands except share and per share data)
Tangible equity to tangible assets (1)			11.42	%			11.77	%			11.45	%
Book value (BV) per common share		$	18.19			$	18.27			$	17.79
Tangible BV per common share (1)		$	14.22			$	14.29			$	13.79
ASSET QUALITY
Allowance for credit losses - loans (ALL)		$	33,723			$	34,860			$	34,348
Reserve for unfunded loan commitments		$	1,753			$	1,769			$	2,105
Allowance for credit losses (ACL)		$	35,476			$	36,629			$	36,453
ALL to nonperforming loans			361.5	%			390.7	%			213.5	%
ALL to total loans held for investment			1.07	%			1.13	%			1.13	%
ACL to total loans held for investment			1.13	%			1.18	%			1.20	%
30-89 days past due, excluding nonaccrual loans		$	80			$	4,941			$	14,735
90 days or more past due, excluding nonaccrual loans		$	—			$	—			$	—
Special mention loans		$	40,254			$	48,640			$	72,407
Special mention loans to total loans held for investment			1.28	%			1.57	%			2.39	%
Substandard loans		$	58,676			$	64,209			$	60,681
Substandard loans to total loans held for investment			1.86	%			2.07	%			2.00	%
Nonperforming loans		$	9,329			$	8,922			$	16,086
Nonperforming loans to total loans held for investment			0.30	%			0.29	%			0.53	%
Other real estate owned, net		$	8,613			$	8,613			$	—
Nonperforming assets		$	17,942			$	17,535			$	16,086
Nonperforming assets to total assets			0.44	%			0.44	%			0.40	%

		As of
		September 30, 2026				June 30, 2026				December 31, 2025
END OF PERIOD BALANCES		($ in thousands except share and per share data)
Total loans, including loans held for sale		$	3,163,928			$	3,110,581			$	3,058,992
Total assets		$	4,105,696			$	4,025,259			$	4,033,386
Deposits		$	3,476,482			$	3,359,105			$	3,370,581
Loans to deposits			91.0	%			92.6	%			90.8	%
Shareholders' equity		$	581,354			$	586,640			$	576,586

(1) Non-GAAP measure. See – GAAP to Non-GAAP reconciliation.

		At or for the Three Months Ended												At or for the Nine Months Ended
ALLOWANCE for CREDIT LOSSES		September 30, 2026				June 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
		($ in thousands)
Allowance for credit losses - loans
Balance at beginning of period		$	34,860			$	34,002			$	41,110			$	34,348			$	50,540
Initial allowance for purchased seasoned loans			224				—				—				224				—
Provision for (reversal of) credit losses			3,231				1,050				221				3,900				(3,600	)
Charge-offs			(4,605	)			(193	)			(323	)			(4,798	)			(7,729	)
Recoveries			13				1				284				49				2,081
Net charge-offs			(4,592	)			(192	)			(39	)			(4,749	)			(5,648	)
Balance, end of period		$	33,723			$	34,860			$	41,292			$	33,723			$	41,292
Reserve for unfunded loan commitments (1)
Balance, beginning of period		$	1,769			$	2,105			$	2,514			$	2,105			$	3,103
Reversal of provision for credit losses			(16	)			(336	)			(236	)			(352	)			(825	)
Balance, end of period			1,753				1,769				2,278				1,753				2,278
Allowance for credit losses		$	35,476			$	36,629			$	43,570			$	35,476			$	43,570
ALL to total loans held for investment			1.07	%			1.13	%			1.38	%			1.07	%			1.38	%
ACL to total loans held for investment			1.13	%			1.18	%			1.46	%			1.13	%			1.46	%
Net charge-offs to average total loans held-for-investment			(0.59	)%			(0.03	)%			(0.01	)%			(0.21	)%			(0.25	)%

(1)  Included in "Accrued interest and other liabilities" on the consolidated balance sheets.

California BanCorp and Subsidiary
Balance Sheets (Unaudited)

		September 30, 2026				June 30, 2026				December 31, 2025
ASSETS		($ in thousands)
Cash and due from banks		$	41,559			$	55,196			$	52,013
Federal funds sold & other interest-bearing balances			225,094				209,755				347,900
Total cash and cash equivalents			266,653				264,951				399,913
Debt securities available-for-sale, at fair value (amortized cost of $343,147, $316,289 and $237,191 at September 30, 2026, June 30, 2026 and December 31, 2025)			318,897				308,792				234,890
Debt securities held-to-maturity, at cost (fair value of $45,680, $48,467 and $49,308 at September 30, 2026, June 30, 2026 and December 31, 2025)			52,673				52,761				52,936
Loans held for sale			15,389				15,828				25,105
Loans held for investment:
Construction & land development			153,738				133,828				138,894
1-4 family residential			136,063				139,841				142,399
Multifamily			295,172				286,296				324,075
Other commercial real estate			1,925,968				1,906,910				1,820,445
Commercial & industrial			636,060				625,212				605,859
Other consumer			1,538				2,666				2,215
Total loans held for investment			3,148,539				3,094,753				3,033,887
Allowance for credit losses - loans			(33,723	)			(34,860	)			(34,348	)
Total loans held for investment, net			3,114,816				3,059,893				2,999,539
Restricted stock at cost			30,976				30,941				30,932
Premises and equipment			12,023				12,154				12,116
Right of use asset			15,719				14,664				15,094
Other real estate owned, net			8,613				8,613				—
Goodwill			110,934				110,934				110,934
Intangible assets			16,104				16,880				18,480
Bank owned life insurance			68,404				67,903				67,367
Deferred taxes, net			30,491				26,054				29,041
Accrued interest and other assets			44,004				34,891				37,039
Total assets		$	4,105,696			$	4,025,259			$	4,033,386
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand		$	1,261,757			$	1,256,822			$	1,178,256
Interest-bearing NOW accounts			866,885				819,746				840,593
Money market and savings accounts			1,258,855				1,190,498				1,223,486
Time deposits			88,985				92,039				128,246
Total deposits			3,476,482				3,359,105				3,370,581
Borrowings			—				34,611				33,832
Operating lease liability			19,371				18,375				18,936
Accrued interest and other liabilities			28,489				26,528				33,451
Total liabilities			3,524,342				3,438,619				3,456,800
Shareholders' Equity:
Common stock - 50,000,000 shares authorized, no par value; issued and outstanding 31,952,352, 32,110,117, and 32,418,182 at September 30, 2026, June 30, 2026 and December 31, 2025			430,900				434,514				442,394
Retained earnings			167,536				157,407				135,813
Accumulated other comprehensive loss - net of taxes			(17,082	)			(5,281	)			(1,621	)
Total shareholders' equity			581,354				586,640				576,586
Total liabilities and shareholders' equity		$	4,105,696			$	4,025,259			$	4,033,386

California BanCorp and Subsidiary
Income Statements - Quarterly and Year-to-Date (Unaudited)

		Three Months Ended												Nine Months Ended
		September 30, 2026				June 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
		($ in thousands except share and per share data)
INTEREST AND DIVIDEND INCOME
Interest and fees on loans		$	49,207			$	47,970			$	48,721			$	142,805			$	148,487
Interest on debt securities			3,641				3,528				2,142				9,947				5,417
Interest on tax-exempted debt securities			297				297				302				892				911
Interest and dividends from other institutions			3,158				3,137				6,023				11,376				14,984
Total interest and dividend income			56,303				54,932				57,188				165,020				169,799
INTEREST EXPENSE
Interest on NOW, savings, and money market accounts			10,838				10,105				12,159				31,002				34,665
Interest on time deposits			727				778				1,402				2,448				5,015
Interest on borrowings			594				695				1,112				1,988				3,932
Total interest expense			12,159				11,578				14,673				35,438				43,612
Net interest income			44,144				43,354				42,515				129,582				126,187
Provision for (reversal of) credit losses (1)			3,215				714				(15	)			3,548				(4,425	)
Net interest income after provision for (reversal of) credit losses			40,929				42,640				42,530				126,034				130,612
NONINTEREST INCOME
Service charges and fees on deposit accounts			1,159				1,097				1,099				3,356				3,463
Gain on sale of loans			—				—				—				—				577
Bank owned life insurance income			501				496				883				1,515				1,849
Servicing and related income on loans			75				51				69				204				313
Other charges and fees (losses)			167				(93	)			617				515				1,888
Total noninterest income			1,902				1,551				2,668				5,590				8,090
NONINTEREST EXPENSE
Salaries and employee benefits			15,387				15,544				14,717				47,481				45,874
Occupancy and equipment expenses			1,996				1,944				2,060				5,929				6,306
Data processing			2,170				2,079				1,913				6,214				5,679
Legal, audit and professional			1,079				850				843				2,713				2,674
Regulatory assessments			519				544				508				1,590				1,775
Director and shareholder expenses			348				352				353				1,037				1,152
Intangible assets amortization			776				800				948				2,376				2,844
Other real estate owned expense (income), net			4				201				(10	)			309				920
Other expense			2,124				2,032				2,050				6,612				5,911
Total noninterest expense			24,403				24,346				23,382				74,261				73,135
Income before income taxes			18,428				19,845				21,816				57,363				65,567
Income tax expense			4,412				5,545				6,132				15,256				18,931
Net income		$	14,016			$	14,300			$	15,684			$	42,107			$	46,636
Net income per share - basic		$	0.44			$	0.44			$	0.48			$	1.31			$	1.44
Net income per share - diluted		$	0.43			$	0.44			$	0.48			$	1.30			$	1.42
Weighted average common shares-diluted			32,383,922				32,395,945				32,811,827				32,484,200				32,732,145

(1) Included reversal of credit losses on unfunded loan commitments of $16 thousand, $336 thousand and $236 thousand for the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively; and $352 thousand and $825 thousand for the nine months ended September 30, 2026 and September 30, 2025, respectively.

California BanCorp and Subsidiary
Average Balance Sheets and Yield Analysis
(Unaudited)

		Three Months Ended
		September 30, 2026													June 30, 2026													September 30, 2025
		Average Balance				Income/ Expense				Yield/ Cost					Average Balance				Income/ Expense				Yield/ Cost					Average Balance				Income/ Expense				Yield/ Cost
Assets		($ in thousands)
Interest-earning assets:
Total loans		$	3,105,177			$	49,207				6.29		%		$	3,037,033			$	47,970				6.34		%		$	2,974,224			$	48,721				6.50		%
Taxable debt securities			308,549				3,641				4.68		%			306,837				3,528				4.61		%			191,922				2,142				4.43		%
Tax-exempt debt securities (1)			52,174				297				2.86		%			52,262				297				2.89		%			53,092				302				2.86		%
Deposits in other financial institutions			281,944				2,620				3.69		%			230,941				2,123				3.69		%			452,615				5,101				4.47		%
Fed funds sold/resale agreements			18,517				178				3.81		%			30,700				301				3.93		%			29,575				315				4.23		%
Restricted stock investments and other bank stock			31,782				360				4.49		%			31,759				713				9.00		%			31,702				607				7.60		%
Total interest-earning assets			3,798,143				56,303				5.88		%			3,689,532				54,932				5.97		%			3,733,130				57,188				6.08		%
Total noninterest-earning assets			309,489													307,720													308,742
Total Assets		$	4,107,632												$	3,997,252												$	4,041,872
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing NOW accounts		$	905,910			$	3,820				1.67		%		$	838,323			$	3,543				1.70		%		$	862,250			$	4,172				1.92		%
Money market and savings accounts			1,210,132				7,018				2.30		%			1,176,250				6,562				2.24		%			1,194,541				7,987				2.65		%
Time deposits			90,920				727				3.17		%			96,848				778				3.22		%			151,633				1,402				3.67		%
Total interest-bearing deposits			2,206,962				11,565				2.08		%			2,111,421				10,883				2.07		%			2,208,424				13,561				2.44		%
Borrowings:
FHLB advances and Federal Reserve Discount Window borrowings			28				—				—	%				—				—				—	%				—				—				—	%
Subordinated debt			23,454				594				10.05		%			34,421				695				8.10		%			52,952				1,112				8.33		%
Total borrowings			23,482				594				10.04		%			34,421				695				8.10		%			52,952				1,112				8.33		%
Total interest-bearing liabilities			2,230,444				12,159				2.16		%			2,145,842				11,578				2.16		%			2,261,376				14,673				2.57		%
Noninterest-bearing liabilities:
Noninterest-bearing deposits (2)			1,241,391													1,224,016													1,183,313
Other liabilities			47,665													44,695													43,640
Shareholders' equity			588,132													582,699													553,543
Total Liabilities and Shareholders' Equity		$	4,107,632												$	3,997,252												$	4,041,872
Net interest spread											3.72		%											3.81		%											3.51		%
Net interest income and margin						$	44,144				4.61		%						$	43,354				4.71		%						$	42,515				4.52		%
Cost of deposits		$	3,448,353			$	11,565				1.33		%		$	3,335,437			$	10,883				1.31		%		$	3,391,737			$	13,561				1.59		%
Cost of funds		$	3,471,835			$	12,159				1.39		%		$	3,369,858			$	11,578				1.38		%		$	3,444,689			$	14,673				1.69		%

(1) Tax-exempt debt securities yields are presented on a tax equivalent basis using a 21% tax rate.
(2) Average noninterest-bearing deposits represent 36.00%, 36.70% and 34.89% of average total deposits for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively.

California BanCorp and Subsidiary
Average Balance Sheets and Yield Analysis
(Unaudited)

		Nine Months Ended
		September 30, 2026												September 30, 2025
		Average Balance				Income/ Expense				Yield/ Cost				Average Balance				Income/ Expense				Yield/ Cost
Assets		($ in thousands)
Interest-earning assets:
Total loans		$	3,052,202			$	142,805				6.26	%		$	3,024,919			$	148,487				6.56		%
Taxable debt securities			291,099				9,947				4.57	%			165,512				5,417				4.38		%
Tax-exempt debt securities (1)			52,261				892				2.89	%			53,349				911				2.89		%
Deposits in other financial institutions			312,707				8,586				3.67	%			355,431				11,839				4.45		%
Fed funds sold/resale agreements			27,957				779				3.73	%			41,849				1,380				4.41		%
Restricted stock investments and other bank stock			31,766				2,011				8.46	%			31,677				1,765				7.45		%
Total interest-earning assets			3,767,992				165,020				5.86	%			3,672,737				169,799				6.18		%
Total noninterest-earning assets			305,110												309,638
Total Assets		$	4,073,102											$	3,982,375
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing NOW accounts		$	887,990			$	10,725				1.61	%		$	787,614			$	11,204				1.90		%
Money market and savings accounts			1,198,372				20,277				2.26	%			1,168,715				23,461				2.68		%
Time deposits			100,893				2,448				3.24	%			174,529				5,015				3.84		%
Total interest-bearing deposits			2,187,255				33,450				2.04	%			2,130,858				39,680				2.49		%
Borrowings:
FHLB advances and Federal Reserve Discount Window borrowings			119				3				3.67	%			—				—				—	%
Subordinated debt			30,599				1,985				8.67	%			63,317				3,932				8.30		%
Total borrowings			30,718				1,988				8.65	%			63,317				3,932				8.30		%
Total interest-bearing liabilities			2,217,973				35,438				2.14	%			2,194,175				43,612				2.66		%
Noninterest-bearing liabilities:
Noninterest-bearing deposits (2)			1,223,755												1,206,063
Other liabilities			47,344												45,188
Shareholders' equity			584,030												536,949
Total Liabilities and Shareholders' Equity		$	4,073,102											$	3,982,375
Net interest spread											3.72	%											3.52		%
Net interest income and margin						$	129,582				4.60	%						$	126,187				4.59		%
Cost of deposits		$	3,411,010			$	33,450				1.31	%		$	3,336,921			$	39,680				1.59		%
Cost of funds		$	3,441,728			$	35,438				1.38	%		$	3,400,238			$	43,612				1.71		%

(1) Tax-exempt debt securities yields are presented on a tax equivalent basis using a 21% tax rate.
(2) Average noninterest-bearing deposits represent 35.88%, and 36.14% of average total deposits for the nine months ended September 30, 2026 and September 30, 2025, respectively.

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) efficiency ratio, (2) pre-tax pre-provision income, (3) average tangible common equity, (4) return on tangible common equity, (5) tangible common equity, (6) tangible assets, (7) tangible common equity to tangible asset ratio, and (8) 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												Nine Months Ended
		September 30, 2026				June 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
		($ in thousands)
Efficiency Ratio
Noninterest expense		$	24,403			$	24,346			$	23,382			$	74,261			$	73,135
Net interest income			44,144				43,354				42,515				129,582				126,187
Noninterest income			1,902				1,551				2,668				5,590				8,090
Total net interest income and noninterest income		$	46,046			$	44,905			$	45,183			$	135,172			$	134,277
Efficiency ratio (non-GAAP)			53.00	%			54.22	%			51.75	%			54.94	%			54.47	%
Pre-tax pre-provision income
Net interest income		$	44,144			$	43,354			$	42,515			$	129,582			$	126,187
Noninterest income			1,902				1,551				2,668				5,590				8,090
Total net interest income and noninterest income			46,046				44,905				45,183				135,172				134,277
Less: Noninterest expense			24,403				24,346				23,382				74,261				73,135
Pre-tax pre-provision income (non-GAAP)		$	21,643			$	20,559			$	21,801			$	60,911			$	61,142
Return on Average Assets, Equity, and Tangible Equity
Net income		$	14,016			$	14,300			$	15,684			$	42,107			$	46,636
Average assets		$	4,107,632			$	3,997,252			$	4,041,872			$	4,073,102			$	3,982,375
Average shareholders' equity			588,132				582,699				553,543				584,030				536,949
Less: Average intangible assets			127,406				128,203				130,825				128,195				132,321
Average tangible common equity (non-GAAP)		$	460,726			$	454,496			$	422,718			$	455,835			$	404,628
Return on average assets			1.35	%			1.43	%			1.54	%			1.38	%			1.57	%
Return on average equity			9.45	%			9.84	%			11.24	%			9.64	%			11.61	%
Return on average tangible common equity (non-GAAP)			12.07	%			12.62	%			14.72	%			12.35	%			15.41	%

		September 30, 2026				June 30, 2026				December 31, 2025
		($ in thousands except share and per share data)
Tangible Common Equity Ratio/Tangible Book Value Per Share
Shareholders' equity		$	581,354			$	586,640			$	576,586
Less: Intangible assets			127,038				127,814				129,414
Tangible common equity (non-GAAP)		$	454,316			$	458,826			$	447,172
Total assets		$	4,105,696			$	4,025,259			$	4,033,386
Less: Intangible assets			127,038				127,814				129,414
Tangible assets (non-GAAP)		$	3,978,658			$	3,897,445			$	3,903,972
Equity to asset ratio			14.16	%			14.57	%			14.30	%
Tangible common equity to tangible asset ratio (non-GAAP)			11.42	%			11.77	%			11.45	%
Book value per share		$	18.19			$	18.27			$	17.79
Tangible book value per share (non-GAAP)		$	14.22			$	14.29			$	13.79
Shares outstanding			31,952,352				32,110,117				32,418,182

INVESTOR RELATIONS CONTACT
Thomas Dolan
California Bank of Commerce, N.A.
IR@bankcbc.com

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¹ Reconciliations of non–U.S. generally accepted accounting principles (“GAAP”) measures are set forth at the end of this press release.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were California BanCorp's third-quarter 2026 earnings?

California BanCorp earned $14.0 million, or $0.43 per diluted share, in third-quarter 2026. That compares with $14.3 million, or $0.44 per diluted share, in second-quarter 2026 and $15.7 million, or $0.48 per diluted share, in third-quarter 2025.

How much did California BanCorp's loans and deposits grow in third-quarter 2026?

Loans, including loans held for sale, increased 1.7% to $3.16 billion, while deposits increased 3.5% to $3.48 billion from June 30 to September 30, 2026. The reported increases were $53.3 million for loans and $117.4 million for deposits.

How did purchase accounting affect California BanCorp's third-quarter 2026 net interest margin?

Purchase accounting adjustments increased third-quarter 2026 net interest margin by 31 basis points. Income recognized from discounts on acquired loans was $3.3 million, while amortization of acquired subordinated debt discounts and acquired time deposit premiums increased interest expense by $389 thousand.

Why did California BanCorp increase its third-quarter 2026 loan-loss provision?

California BanCorp linked the higher provision for loans held for investment to $4.6 million in net charge-offs, updated California economic forecasts, revised scenario weights, loan growth and portfolio changes. Declines in accruing substandard and special mention loans, together with refinements to qualitative factors, partly offset those pressures.