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].

Financial Overview - As of December 31, 2024, California BanCorp had total consolidated assets of $4.03 billion, total loans of $3.16 billion, total deposits of $3.40 billion, and total shareholders' equity of $511.8 million[24]. - The merger with California BanCorp (CALB) was completed on July 31, 2024, resulting in a combined bank holding company with approximately $4.25 billion in assets and 14 branches across California[34]. - The total aggregate consideration paid for the merger was approximately $216.6 million, which included approximately $74.0 million of preliminary goodwill[34]. - As of July 31, 2024, CALB had total loans of $1.43 billion, total assets of $1.91 billion, and total deposits of $1.64 billion prior to the merger[34]. - Total deposits reached $3.40 billion, including noninterest-bearing demand deposits of $1.26 billion (37.0% of total deposits) and a total deposit cost of 2.01% for the year ended December 31, 2024[66]. Business Strategy - California BanCorp's strategy focuses on serving small to medium-sized businesses, targeting a market with approximately 1.7 million such businesses in California[36]. - The company has expanded its branch network through acquisitions, including the acquisition of Bank of Santa Clarita, completed on October 1, 2021, and the merger with CALB[28]. - The company operates 14 branch offices and four loan production offices, with a focus on key Southern California markets[35]. - The company emphasizes a relationship-based banking approach, providing personalized service to small business owners, which is generally unavailable from larger banks[30]. Loan Portfolio - California BanCorp's lending products primarily include construction and land development loans, commercial real estate loans, commercial and industrial loans, SBA loans, and consumer loans[23]. - As of December 31, 2024, the company had total loans held for investment of $3.14 billion, with non-SBA loans accounting for $2.95 billion (93.9%) and SBA loans for $189.4 million (6.1%)[50]. - The real estate loans portfolio totaled $2.01 billion, representing 64.0% of loans held for investment, with non-owner occupied commercial real estate loans at $1.13 billion and multifamily residential loans at $244.0 million[56]. - The company reported $693.5 million in commercial and industrial loans, which constituted 22.1% of the loans held for investment, with $4.9 million classified as non-performing[58]. - The company had $222.0 million in construction and land development loans, representing 7.1% of the loans held for investment, with $9.7 million classified as non-performing[53]. - As of December 31, 2024, the company had $24.7 million in consumer loans, accounting for 0.7% of total loans held for investment, with $150 thousand in consumer solar loans over 90 days past due[64]. - The company had $189.4 million in SBA loans, which represented 6.1% of total loans held for investment, with $374 thousand classified as non-performing[63]. Capital and Regulatory Compliance - The company maintains a capital conservation buffer of 2.5% of risk-weighted assets, increasing minimum CET1 capital, Tier 1 capital, and total capital ratios to 7.0%, 8.5%, and 10.5% respectively[88]. - Total Capital to Risk-Weighted Assets ratio as of December 31, 2024, was 10.0%, exceeding the minimum required of 8.0%[89]. - Tier 1 Capital to Risk-Weighted Assets ratio was 8.0%, above the minimum requirement of 6.0%[89]. - CET1 Capital to Risk-Weighted Assets ratio was 6.5%, surpassing the minimum requirement of 4.5%[89]. - The company is subject to consolidated capital rules at the bank holding company level starting from the third quarter of 2024[85]. - The company has not elected to be a financial holding company, limiting its activities to those determined by the Federal Reserve[99]. - The company is required to consult with the Federal Reserve before repurchasing shares or paying dividends that exceed its earnings for the quarter[102]. - The company is extensively regulated under federal and state law, primarily by the Federal Reserve and the OCC[82]. Risk Management - The company emphasizes risk reduction in its loan portfolio by maintaining a maximum loan-to-value ratio of 75% for construction and land development loans[53]. - The company faces risks related to economic downturns in California, where it primarily operates, which could adversely affect credit quality and profitability[152]. - A significant portion of the loan portfolio is secured by real estate, making the company vulnerable to downturns in the local real estate market, potentially impacting profitability[154]. - Changes in interest rates could significantly affect net interest income, with potential adverse impacts on loan origination and repayment rates[155][158]. - The company may experience gaps in interest rate sensitivities between assets and liabilities, which could negatively impact earnings if market rates move unfavorably[157]. - The company relies on independent appraisals for real estate values, which may not be realizable in foreclosure situations, increasing credit risk[146]. - The company’s credit risk management practices may not fully prevent losses in its loan portfolio, despite adherence to sound underwriting practices[167]. - The company relies on independent appraisals for real estate securing loans, which may not reflect realizable values, increasing the risk of loss upon foreclosure[168]. Operational and Compliance Risks - The company is subject to various restrictions on capital distributions, including dividends, which can be up to 100% of net income for the year-to-date plus retained net income for the two preceding years without prior OCC approval[115]. - The Bank's ability to make loans is limited to 15% of unimpaired capital and surplus, with a potential increase to 25% if secured by readily marketable collateral[119]. - The Bank received a "satisfactory" overall rating in its most recent Community Reinvestment Act evaluation in 2024, with an "outstanding" rating on Community Development[126]. - The company must comply with anti-money laundering regulations, which include developing policies to monitor compliance and prevent suspicious activities[128]. - The company is subject to the Dodd-Frank Act, which centralizes consumer financial protection responsibilities with the CFPB, affecting compliance costs and operational regulations[134]. - Regulatory changes and increased scrutiny in the financial services industry could lead to higher compliance costs and operational uncertainties[137]. - The company is exposed to risks from severe weather and natural disasters, particularly in California, which could disrupt operations and increase loan defaults[151]. - The company may need to raise additional capital, but availability of such capital is uncertain, posing liquidity risks[146]. - Liquidity is essential for the company's operations, and any substantial changes in liquidity levels could adversely affect its financial condition[179]. - The company plans to pursue acquisitions as part of its growth strategy, which may strain its operational and financial resources[188]. - The integration of CALB with the company may incur unexpected costs and the anticipated benefits may not be realized[190]. - The company has not recorded goodwill impairment as of December 31, 2024, but future impairment could adversely affect its financial condition[191]. - The company's reputation is critical for business success, and any negative impact could materially affect its operations[192]. - Competition in the banking and financial services industry is intense, which may limit the company's growth and profitability[194]. - The company relies heavily on its executive management team, and the loss of key personnel could adversely affect its operations[195]. - The company is subject to stringent capital requirements, and failure to comply could result in regulatory restrictions and affect its financial condition[202]. Technological and Cybersecurity Risks - The financial services industry is experiencing rapid technological changes, with a focus on artificial intelligence and machine learning to enhance customer interactions and data analysis[205]. - Competitors may have greater resources for technological investments, potentially leading to a competitive disadvantage for the company[205]. - Cybersecurity risks, including e-fraud and data breaches, pose significant threats, with potential reputational and financial consequences[209]. - The company relies on robust information security measures, but evolving cyber threats may require additional resources for protection and remediation[208]. - The use of artificial intelligence in products and services carries risks of reputational harm and potential legal liabilities due to flawed algorithms or biased data[211]. - The enterprise risk management framework may not effectively mitigate risks, leading to potential losses and reputational damage[212]. - Operational risks include employee errors and misconduct, which could result in financial losses and regulatory sanctions[213]. - The company is dependent on data and modeling for decision-making, with faulty data potentially leading to adverse outcomes and regulatory scrutiny[216]. Environmental and Compliance Considerations - Compliance with environmental laws has not materially impacted capital expenditures or earnings, with no significant costs associated with environmental regulations identified[135]. - Environmental liabilities may arise from real estate properties securing the loan portfolio, potentially incurring substantial costs[217].

Financial Performance - Net income for Q4 2024 was $16.8 million, or $0.51 per diluted share, compared to a net loss of $16.5 million in Q3 2024 and net income of $4.4 million in Q4 2023[2] - Full year 2024 net income was $5.4 million, down 79.0% from $25.9 million in 2023, largely due to a one-time provision for credit losses and merger-related expenses[8] - The company reported an adjusted net income of $122.98 million for the year ended December 31, 2024, compared to $94.14 million in 2023[53] - Adjusted net income for Q4 2024 was $17,225,000, compared to $9,090,000 in Q3 2024, reflecting a significant increase[54] - The company reported a net income of $16,772,000 for the three months ended September 30, 2024, compared to a net loss of $16,464,000 in the prior year, indicating a significant turnaround[41] Asset and Loan Growth - Total assets at December 31, 2024, were $4.03 billion, a 70.8% increase from the previous year, largely due to the merger[8] - Total loans increased to $3.16 billion at December 31, 2024, up $1.2 billion from the previous year, primarily due to the merger[8] - Total assets reached $4,168.7 million as of December 31, 2024, compared to $3,593.2 million a year earlier[49] - The company’s total assets as of September 30, 2024, were $4.03 billion, compared to $2.36 billion a year ago, marking an increase of 70.9%[45] - The company’s total loans held for investment reached $3.14 billion as of September 30, 2024, compared to $1.96 billion a year earlier, indicating a year-over-year increase of 60.1%[45] Efficiency and Cost Management - The efficiency ratio (non-GAAP) improved to 57.4% in Q4 2024 from 98.9% in the prior quarter, excluding merger-related expenses[8] - The efficiency ratio improved to 57.36% for the three months ended September 30, 2024, compared to 98.86% in the same period last year, indicating better cost management[41] - Total noninterest expense for Q4 2024 was $26.1 million, a decrease of $11.6 million from $37.7 million in the prior quarter, largely due to reduced merger-related expenses[18] - Total noninterest expense for the three months ended September 30, 2024, was $26.13 million, a decrease from $37.68 million in the prior year, reflecting a reduction of 30.6%[47] Credit Quality and Loss Provisions - The company recorded a reversal of provision for credit losses of $3.8 million in Q4 2024, compared to a provision of $23.0 million in the prior quarter[15] - The allowance for credit losses totaled $53.6 million at December 31, 2024, down from $57.6 million at September 30, 2024[31] - The reversal of provision for credit losses for loans held for investment in Q4 2024 was $2.9 million, a decrease of $22.6 million from the prior quarter's provision of $19.7 million[16] - Nonperforming assets to total assets ratio was 0.76% at December 31, 2024, up from 0.68% at September 30, 2024[8] - Non-performing loans increased slightly to $26.5 million, or 0.85% of total loans held for investment at December 31, 2024, compared to 0.80% in the prior quarter[28] Interest Income and Margins - Net interest margin for Q4 2024 was 4.61%, an increase from 4.43% in the prior quarter, driven by a decrease in the cost of funds[12] - Net interest income for Q4 2024 reached $44,541,000, up from $36,942,000 in Q3 2024, indicating a growth of approximately 20%[54] - Total interest and dividend income increased to $62.56 million for the three months ended September 30, 2024, up from $54.13 million year-over-year, representing a growth of 15.9%[47] - The cost of funds was 1.99% for the three months ended December 31, 2024, down from 2.19% in the previous quarter[49] Capital and Book Value - Tangible book value per common share increased to $11.71 in Q4 2024, up $0.43 from the prior quarter[8] - Book value per share increased to $15.86 in Q4 2024 from $15.69 in Q4 2023, reflecting a slight growth[55] - The equity to asset ratio improved to 12.70% in Q4 2024 from 12.21% in Q4 2023, indicating a stronger capital position[55] - The average tangible common equity ratio was maintained to enhance financial stability and support growth initiatives[53]

Core Viewpoint - California BanCorp (BCAL) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [2]. - California BanCorp is projected to earn $1.81 per share for the fiscal year ending December 2025, representing a year-over-year increase of 37.1% [9]. - Over the past three months, the Zacks Consensus Estimate for California BanCorp has risen by 4.3% [9]. Impact of Institutional Investors - Changes in earnings estimates are strongly correlated with stock price movements, largely due to institutional investors who adjust their valuations based on these estimates [5]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, which in turn affects stock prices [5]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of California BanCorp to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for near-term price increases [11].

Core Viewpoint - California BanCorp (BCAL) has shown a modest gain of 0.2% over the past four weeks, closing at $16.30, with analysts suggesting a potential upside of 26.8% based on a mean price target of $20.67 [1] Price Targets - The average price target for BCAL ranges from a low of $19 to a high of $22, with a standard deviation of $1.53, indicating a potential increase of 16.6% to 35% from the current price level [2] - A low standard deviation suggests a strong agreement among analysts regarding the price targets, which can be a good starting point for further research [7] Analyst Sentiment - Analysts have shown growing optimism regarding BCAL's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which historically correlates with stock price movements [9] - Over the last 30 days, the Zacks Consensus Estimate for BCAL's current year earnings has increased by 0.8%, with no negative revisions [10] Zacks Rank - BCAL currently holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside in the near term [11] Conclusion on Price Targets - While the consensus price target may not be a reliable indicator of the magnitude of BCAL's potential gains, the direction implied by these targets appears to be a useful guide for investors [12]

Core Insights - California BanCorp reported a net income of $16.8 million, or $0.51 per diluted share, for Q4 2024, a significant recovery from a net loss of $16.5 million in Q3 2024 and an increase from a net income of $4.4 million in Q4 2023 [2][7] - The company’s full-year net income for 2024 was $5.4 million, down from $25.9 million in 2023, largely due to merger-related expenses and a one-time provision for credit losses [2][9] Financial Performance - Q4 2024 net interest income was $44.5 million, up from $36.9 million in the prior quarter, driven by an increase in total interest and dividend income [8][42] - The net interest margin for Q4 2024 was 4.61%, compared to 4.43% in Q3 2024, reflecting a decrease in the cost of funds [11][12] - The company recorded a reversal of provision for credit losses of $3.8 million in Q4 2024, a significant improvement from a provision of $23.0 million in the prior quarter [14][15] Balance Sheet Highlights - Total assets decreased to $4.03 billion at December 31, 2024, down from $4.36 billion at September 30, 2024, primarily due to a reduction in cash and loans [22][24] - Total loans held for investment were $3.14 billion, a decrease of $60.5 million from the prior quarter, attributed to loan sales and payoffs [23][24] - Total deposits were $3.40 billion, a decrease of $342.2 million from the previous quarter, with noninterest-bearing demand deposits representing 37.0% of total deposits [24][25] Asset Quality - Nonperforming assets increased slightly to $30.6 million, or 0.76% of total assets, compared to $29.8 million, or 0.68% in the prior quarter [28][29] - The allowance for credit losses totaled $53.6 million, down from $57.6 million in the prior quarter, reflecting a reversal of provisions [32][33] Capital and Efficiency - Tangible book value per common share increased to $11.71 at December 31, 2024, up from $11.28 at September 30, 2024 [34] - The efficiency ratio improved to 57.4% in Q4 2024, compared to 98.9% in Q3 2024, indicating better operational efficiency [20][42]

Core Viewpoint - California BanCorp (BCAL) has experienced significant selling pressure, resulting in a 10.5% decline over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) is utilized to identify oversold stocks, with a reading below 30 indicating oversold conditions [2] - BCAL's current RSI reading is 28.41, suggesting that the heavy selling may be nearing exhaustion, indicating a potential rebound [5] Group 2: Fundamental Analysis - Analysts have raised earnings estimates for BCAL, with a 0.8% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [6] - BCAL holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating strong potential for a turnaround [7]