Core Insights - Sentinel Holdings has entered into an asset purchase agreement for OPSEC Specialized Protection, a prominent security solutions provider in Southern California [1] - This acquisition will enable Sentinel Holdings to secure a significant contract with one of California's largest fast-food chains, along with various service contracts with municipal entities in the region [1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION or Washington, D.C. 20549 FORM 10-Q (Mark One) £ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission file number 001-41684 CALIFORNIA BANCORP (Exact name of registrant as specified in its charter) California 84-3288397 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) T QUARTERLY REPORT PURSUANT TO SECTION 13 ...

CALIFORNIA BANCORP REPORTS NET INCOME OF $14.1 MILLION FOR THE SECOND QUARTER OF 2025 San Diego, Calif., July 28, 2025 – 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 second quarter of 2025. The Company reported net income of $14.1 million, or $0.43 per diluted share, for the second quarter of 2025, compared to $16.9 million, or $0.52 per diluted share for th ...

Company Overview - California BanCorp has a market capitalization of $533 million [11] - The company possesses total assets of $40 billion and deposits of $33 billion as of June 30, 2025 [11] - The company has a 5-year asset CAGR of 207% and a 5-year deposit CAGR of 234% [11] Balance Sheet and Loan Portfolio - Total loans held for investment were $30 billion at June 30, 2025, compared to $31 billion at March 31, 2025, and $19 billion at June 30, 2024 [10] - Noninterest-bearing deposits accounted for 368% of total deposits as of June 30, 2025 [10] - As of June 30, 2025, total multifamily loans amounted to $2585 million, representing 86% of total loans [66] Financial Performance - Net income for Q2 2025 was $141 million, with diluted EPS at $043 [25] - The return on average assets for Q2 2025 was 145%, and the return on average common equity was 1050% [25] - The net interest margin for Q2 2025 was 461% [25] - The efficiency ratio for Q2 2025 was 561% [25] - Non-performing assets to total assets stood at 046% for Q2 2025 [25] - The allowance for credit losses to total loans held for investment was 146% as of June 30, 2025 [25]

San Diego, Calif., July 28, 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 second quarter of 2025. The Company reported net income of $14.1 million, or $0.43 per diluted share, for the second quarter of 2025, compared to $16.9 million, or $0.52 per diluted share for the first quarter of 2025, and net income of $190 thousand, or $0.01 p ...

New SVP to Lead Industrial Investing in Southern California and Phoenix Markets LOS ANGELES, July 14, 2025 /PRNewswire/ -- Overton Moore Properties (OMP), a leading real estate investment and development firm in the western U.S., is pleased to announce that Felix Vollrath has joined the firm as a Senior Vice President, Acquisitions and Development, responsible for spearheading the firm's industrial investment and development activities across Southern California and Phoenix. Felix Vollrath Felix Vollrath In ...

Merger and Acquisition - California BanCorp completed an all-stock merger with CALB on July 31, 2024, with CALB reporting total loans of $1.43 billion, total assets of $1.91 billion, and total deposits of $1.64 billion at the time of the merger[232]. - The merger with CALB is expected to enhance market share and scale, particularly in Northern California, by adding one full-service branch and four loan production offices[232]. - Net income for Q1 2025 increased by $11.9 million compared to Q1 2024, primarily due to a $21.8 million increase in net interest income from higher average interest-earning assets resulting from the CALB merger[264]. - Total noninterest income for Q1 2025 was $2.6 million, an increase of $1.2 million compared to $1.4 million in Q1 2024, attributed to the impact of the Merger[287]. Financial Performance - For the three months ended March 31, 2025, net interest income was $42.255 million, a decrease from $44.541 million in the previous quarter, while net income increased to $16.853 million from $16.772 million[249]. - The return on average assets for the three months ended March 31, 2025, was 1.71%, compared to 1.60% in the previous quarter, indicating improved efficiency[249]. - Noninterest income rose to $2.566 million for the three months ended March 31, 2025, up from $1.004 million in the previous quarter[249]. - Net income for Q1 2025 was $16.9 million, or $0.52 per diluted share, compared to $16.8 million, or $0.51 per diluted share in Q4 2024, reflecting a $81 thousand increase[263]. - Pre-tax, pre-provision income for Q1 2025 was $19.9 million, an increase of $481 thousand, or 2.5% compared to $19.4 million in Q4 2024[263]. - The efficiency ratio (non-GAAP) for Q1 2025 was 55.6%, compared to 57.4% in Q4 2024[260]. - Total noninterest expense for Q1 2025 was $24.9 million, a decrease of $1.2 million from $26.1 million in the prior quarter, largely due to the decrease in merger-related expenses[291]. Asset and Liability Management - Total assets as of March 31, 2025, were $3,983,090 thousand, a decrease from $4,031,654 thousand as of December 31, 2024[261]. - The tangible common equity to tangible assets ratio improved to 10.34% in Q1 2025 from 9.69% in Q4 2024[261]. - The allowance for loan losses decreased to $45,839 thousand in Q1 2025 from $50,540 thousand in Q4 2024[250]. - Total loans averaged $3,109.7 million in Q1 2025, generating interest income of $50.7 million with a yield of 6.61%[265]. - The cost of deposits decreased to 1.59% for the three months ended March 31, 2025, from 1.87% in the previous quarter, reflecting improved funding costs[249]. - The Company had seven loan modifications totaling $19.9 million for borrowers experiencing financial difficulty during the last twelve months ended March 31, 2025[332]. Credit Quality - The company reported a net charge-off rate of (0.20)% for the three months ended March 31, 2025, compared to (0.02)% in the previous quarter, indicating a slight increase in credit losses[249]. - Delinquent loans totaled $5.1 million, representing 0.17% of total loans held for investment, a decrease from 0.39% at December 31, 2024[327]. - Nonaccrual loans decreased to $22.8 million as of March 31, 2025, down from $26.4 million at December 31, 2024[335]. - The allowance for loan losses to total loans ratio was 1.49% as of March 31, 2025, compared to 1.61% at December 31, 2024[335]. Economic Environment - The Federal Reserve raised interest rates 11 times between March 2022 and September 2023, totaling 525 basis points, impacting the banking industry and economic conditions[236]. - The economic environment has experienced volatility, impacting the forecasting of future economic outcomes, with significant factors including high inflation and aggressive rate hikes by central banks[338]. - Interest rate risk is the primary market risk for the Company, impacting net interest income and net interest margin due to changes in market interest rates[394]. Capital and Liquidity - Total shareholders' equity increased to $531.4 million at March 31, 2025, up from $511.8 million at December 31, 2024, primarily due to net income of $16.9 million[360]. - The leverage capital ratio for the Company was 10.44% and the total risk-based capital ratio was 14.53% at March 31, 2025[365]. - The total liquidity ratio improved to 16.8% at March 31, 2025, compared to 15.7% at December 31, 2024[366]. - The Company and the Bank were in compliance with the capital conservation buffer requirements as of March 31, 2025[387]. Interest Rate Risk Management - The Asset Liability Committee (ALCO) oversees interest rate risk management, reviewing compliance with regulatory guidance and modeling results quarterly[395]. - The Company utilizes a simulation model to measure interest rate risk, including Net Interest Income at Risk (NII at Risk) and Economic Value of Equity (EVE) assessments[398]. - Projected changes in NII at Risk indicate a modest increase in net interest income in all rates-up scenarios as of March 31, 2025, with a decrease expected if interest rates decline[399]. - The modeled EVE results suggest the Company would benefit from an increase in interest rates and be adversely impacted by a decrease[400].

Group 1 - California BanCorp (BCAL) closed at $14.89, with a 19.6% gain over the past four weeks, and a mean price target of $18.67 suggests a 25.4% upside potential [1] - The mean estimate includes three short-term price targets with a standard deviation of $0.58, indicating a low variability among analysts [2] - Analysts have shown increasing optimism regarding BCAL's earnings prospects, with a positive trend in earnings estimate revisions correlating with potential stock price increases [4][11] Group 2 - The Zacks Consensus Estimate for BCAL has increased by 3.3% due to one upward revision in earnings estimates over the last 30 days [12] - BCAL holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [13] - While the consensus price target may not be a reliable indicator of the extent of gains, it does provide a directional guide for price movement [13]

Core Viewpoint - California Bancorp has authorized an increase in its share repurchase program to 1.6 million shares, representing approximately 4.9% of its outstanding shares, indicating confidence in its banking strategy and commitment to long-term shareholder value [1][2]. Share Repurchase Program - The share repurchase program was initially set at 550,000 shares when announced on June 15, 2023, and has now been increased to 1.6 million shares [1]. - The repurchase may occur through open market transactions, privately negotiated transactions, or other means, funded by available working capital and cash from operating activities [2]. - The timing and number of shares repurchased will depend on various factors, including price, trading volume, and market conditions [2]. Financial Strategy - The company plans to redeem $18 million of 5.50% Fixed-to-Floating Subordinated Notes due 2030, which were issued on May 28, 2020 [3]. - The strong balance sheet and capital levels of the company provide flexibility for opportunistic capital deployment for share repurchases and debt repayment [2]. Company Overview - California Bancorp is a registered bank holding company headquartered in San Diego, California, with its subsidiary, California Bank of Commerce, offering a range of financial products and services [4]. - The bank operates through 14 branch offices and four loan production offices, focusing on a relationship-based banking approach [4].

Financial Performance - Net income for the first quarter of 2025 was $16.9 million, or $0.52 per diluted share, compared to $16.8 million, or $0.51 per diluted share in the previous quarter[3]. - Net income for Q1 2025 was $16,853,000, slightly up from $16,772,000 in Q4 2024 and significantly higher than $4,935,000 in Q1 2024[36]. - Adjusted net income for Q1 2025 was $16,853,000, compared to $17,225,000 in Q4 2024 and $5,482,000 in Q1 2024[45]. - The company reported a pre-tax, pre-provision income of $19,901 thousand for Q1 2025, compared to $19,420 thousand in Q4 2024 and $6,926 thousand in Q1 2024, highlighting strong operational performance[41]. - Return on average assets increased to 1.71% in Q1 2025 from 1.60% in Q4 2024, indicating enhanced profitability[36]. - Return on average assets increased to 1.71% in Q1 2025 from 1.60% in Q4 2024, reflecting enhanced asset utilization[46]. Asset and Loan Management - Total assets decreased by $48.6 million, or 1.2%, to $3.98 billion at March 31, 2025, primarily due to a decrease in loans[18]. - Total loans held for investment were $3.07 billion, a decrease of $70.4 million from December 31, 2024, with new originations of $69.4 million offset by loan sales and payoffs of $115.1 million[19]. - Total loans held for investment decreased to $3,068,774,000 in Q1 2025 from $3,139,165,000 in Q4 2024[40]. - Non-performing loans decreased to $22.8 million, or 0.74% of total loans held for investment, compared to $26.5 million, or 0.85% at December 31, 2024[23]. - Special mention loans increased by $5.1 million to $74.4 million at March 31, 2025, primarily due to downgrades from Pass loans[25]. Income and Expenses - Net interest income for Q1 2025 was $42,255,000, a decrease of 4.6% from $44,541,000 in Q4 2024 and an increase of 106.5% from $20,494,000 in Q1 2024[36]. - Total interest and dividend income for Q1 2025 was $56,825 thousand, a decrease of 9.3% from $62,558 thousand in Q4 2024 and an increase of 81.5% from $31,264 thousand in Q1 2024[41]. - Total noninterest expense for Q1 2025 was $24,920 thousand, a decrease of 4.4% from $26,125 thousand in Q4 2024 and an increase of 66.5% from $14,981 thousand in Q1 2024[41]. - Noninterest income increased to $2.6 million, up from $1.0 million in the previous quarter, primarily due to a gain on sale of loans[13]. - Noninterest income increased to $2,566,000 in Q1 2025, up 155.5% from $1,004,000 in Q4 2024 and 81.5% from $1,413,000 in Q1 2024[36]. Capital and Equity - Tangible book value per common share increased to $12.29, up $0.58 from the prior quarter[5]. - Tangible book value per common share increased to $12.29 at March 31, 2025, from $11.71 at December 31, 2024, primarily driven by net income of $16.9 million[29]. - Shareholders' equity increased to $531,384,000 in Q1 2025 from $511,836,000 in Q4 2024, reflecting a stronger capital position[37]. - Tangible common equity as a percentage of total tangible assets increased to 10.34% from 9.69% in the prior quarter[29]. - The Company's preliminary capital ratios exceeded the minimums required to be "well-capitalized" at March 31, 2025[30]. Deposits and Funding - Total deposits decreased by $56.3 million, or 1.7%, to $3.34 billion at March 31, 2025[5]. - Total deposits decreased to $3.34 billion as of March 31, 2025, down $56.3 million from December 31, 2024, with noninterest-bearing demand deposits increasing to $1.29 billion, or 38.7% of total deposits[20]. - The cost of deposits decreased to 1.59%, down 28 basis points from the prior quarter, due to a deposit repricing strategy[9]. - Average noninterest-bearing deposits represented 37.37% of average total deposits in Q1 2025, up from 36.27% in Q4 2024 and 34.35% in Q1 2024, showing a positive trend in deposit composition[43]. - Total available borrowing capacity was $1.13 billion at March 31, 2025, including $687.8 million from an FHLB secured line of credit[22]. Credit Quality - The allowance for credit losses totaled $48.3 million at March 31, 2025, down from $53.6 million at December 31, 2024, with net charge-offs of $1.5 million for the quarter[27]. - The allowance for credit losses decreased to $48,324,000 in Q1 2025 from $53,643,000 in Q4 2024, reflecting improved asset quality[38]. - Total non-performing assets decreased to $26.9 million, or 0.68% of total assets, compared to $30.6 million, or 0.76% at December 31, 2024[23]. - The Company recorded a reversal of credit losses of $3.8 million, consistent with the prior quarter, with total net charge-offs of $1.5 million[11].