Southern California Bancorp Reports Financial Results for the First Quarter of 2021

Southern California Bancorp (the “Company”) (OTC Pink: BCAL), the holding company for Bank of Southern California, N.A. (the “Bank”) today reported financial results for the first quarter of 2021.

The comparability of financial information for the first quarter of 2021 to the first quarter of 2020 is affected by the Company’s acquisition of CalWest Bancorp (“CalWest”), effective May 29, 2020. Therefore, operating results for the first quarter of 2021 include the combined operations of both entities.

First Quarter 2021 Highlights

• Total loans increased to $1.4 billion, up $182.5 million or 14.8% from the previous quarter
• Total Paycheck Protection Program (PPP) originations of $229 million, with $118 million in forgiveness processed in the first quarter
• Total non-PPP loans increased to $903.6 million, up $76.2 million, or 9.2% from the previous quarter
• Net interest margin of 3.38%, excluding PPP loans the net interest margin was 3.64%
• Total assets increased to $1.7 billion, up $94 million or 6.0% from December 31, 2020
• Total deposits increased to $1.5 billion, up $258.6 million or 21.6% from the previous quarter
• Noninterest bearing demand deposits were 48.4% of total deposits
• Nonperforming assets to total assets of 0.05% at March 31, 2021
• Announced acquisition of Bank of Santa Clarita, which expands footprint into northern Los Angeles County and creates pro forma commercial bank with approximately $2.0 billion in assets
• Announced sale of three branches to align the Bank’s branch footprint to support its commercial banking strategy
• Continued status as well-capitalized, the highest regulatory capital category

“The first quarter of 2021 was a very strong quarter for the Bank’s loan originations, which included $76 million in net organic non-PPP loans and $229 million in PPP fundings,” said Nathan Rogge, President and Chief Executive Officer of Bank of Southern California. “Our non-PPP loan portfolio increased to $904 million, with the $76 million in loan growth fairly evenly divided between commercial and industrial loans, and commercial real estate loans. Our PPP loan portfolio increased to $513 million, up $106 million or 26% from the fourth quarter, as we processed $118 million in PPP loan forgiveness during the first quarter. Deposit growth was very strong, with total deposits increasing $259 million or 21.6%, including a $169 million increase in noninterest-bearing deposits, which were 48.4% of all deposits at the end of the first quarter. Credit quality remains very good with nonperforming assets to total assets of just 0.05% in the first quarter, down from 0.06% in the fourth quarter.”

“We made great strides in the first quarter toward the implementation of our commercial banking strategy,” said David Rainer, Executive Chairman of Southern California Bancorp and Bank of Southern California. “With the recently announced acquisition of Bank of Santa Clarita, we will be expanding our footprint into northern Los Angeles County with its attractive banking opportunities and partnered with a bank that has an established track record in the area and a customer service focus very similar to ours. This acquisition, combined with the sale of three branches that were not in alignment with our commercial banking strategy, moves us closer to the ideal branch network for our commercial platform, with a footprint that runs along the California coast from San Diego to Ventura County. Adding to that footprint, we opened branches in West Los Angeles