Draft v4.5 1/21/24 Investor Presentation Third Quarter 2024 Results Forward-Looking Statements and Other Matters This presentation includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, liquidity and capital ratios and other non-historical statements. Words or phrases such as "believe," "wi ...

Draft v4.5 1/21/24 Investor Presentation First Quarter 2025 Results Forward-Looking Statements and Other Matters First Quarter 2025 Earnings | 2 Financial Highlights 1Q25 results reflect 6% annualized loan growth, NIM expansion and YoY lower noninterest expense | | | | | | | | Change | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | 1Q25 | 4Q24 | 1Q24 | QoQ D | YoY D | | | | | Operating results | | | | | | | EPS | NIM | | PTPP(1) EPS | $82.4mm | $82.9mm | $52.4mm | -0.7% | 57.2% $0.14 | ...

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] - Adjusted net income for Q4 2024 was $17,225,000, compared to $9,090,000 in Q3 2024, reflecting a significant increase[54] - Net interest income for Q4 2024 reached $44,541,000, up from $36,942,000 in Q3 2024, indicating a growth of 37%[54] - Total net interest income and noninterest income for the year ended December 31, 2024, was $127,744,000, compared to $97,517,000 in 2023, marking a year-over-year increase of 30.9%[54] Assets and Loans - Total assets as of December 31, 2024, were $4.03 billion, a 70.8% increase from $2.36 billion at the end of 2023, primarily due to the merger[8] - Total loans increased to $3.16 billion at December 31, 2024, up $1.2 billion from December 31, 2023, largely due to the merger[8] - Total assets at December 31, 2024, were $4.03 billion, a decrease of $331.1 million or 7.6% from September 30, 2024[22] - Total loans held for investment were $3.14 billion at December 31, 2024, a decrease of $60.5 million from the prior quarter, primarily due to loan sales and payoffs[23] - Average assets grew to $4,168,747,000 in Q4 2024 from $3,593,157,000 in Q3 2024, indicating strong asset growth[55] Efficiency and Ratios - The efficiency ratio (non-GAAP) improved to 57.4% in Q4 2024 from 98.9% in the prior quarter, excluding merger-related expenses it was 55.9%[8] - The efficiency ratio for the year ended December 31, 2024, was reported at 3.11%, slightly down from 3.25% in the previous year[51] - Adjusted return on average equity (non-GAAP) was 13.57% in Q4 2024, up from 8.44% in Q3 2024, reflecting improved profitability[55] Credit Losses and Provisions - Provision for credit losses was reversed by $3.8 million in Q4 2024, compared to a provision of $23.0 million in the prior quarter[15] - 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] - The company has allocated $18.5 million for the initial provision for credit losses related to non-PCD loans acquired in the merger[44] Deposits - Total deposits decreased by $342.2 million, or 9.1%, to $3.40 billion at December 31, 2024, compared to $3.74 billion at September 30, 2024[8] - Total deposits at December 31, 2024, were $3.40 billion, a decrease of $342.2 million from September 30, 2024[24] - The company’s total deposits as of September 30, 2024, were $3.40 billion, an increase from $1.94 billion in the same period last year, marking a growth of 75.2%[45] Noninterest Income and Expenses - Noninterest income in Q4 2024 was $1.0 million, down $170 thousand from $1.2 million in Q3 2024, with a loss on sale of loans amounting to $1.1 million[17] - Total noninterest expense for Q4 2024 was $26.1 million, a decrease of $11.6 million from $37.7 million in the prior quarter, primarily due to reduced merger-related expenses[18] - Noninterest expense for the three months ended September 30, 2024, was $26.13 million, a decrease of 30.5% from $37.68 million in the prior year[47] Shareholder Value - Tangible book value per common share increased to $11.71 at December 31, 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 stable growth in shareholder value[55] - Shares outstanding increased to 32,265,935 as of December 31, 2024, compared to 18,369,115 in the previous year, indicating potential dilution[55]

Company Performance - California Bank of Commerce (CALB) reported a quarterly loss of $0.68 per share, missing the Zacks Consensus Estimate of $0.52, and down from earnings of $0.65 per share a year ago [1] - The company posted revenues of $18.34 million for the quarter, missing the Zacks Consensus Estimate by 5.46%, and down from $19.78 million year-over-year [8] - The quarterly report represents an earnings surprise of -230.77%, with a previous expectation of $0.55 per share resulting in an actual earnings of $0.57, delivering a surprise of 3.64% [7] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.53 on revenues of $19.8 million, and for the current fiscal year, it is $2.15 on revenues of $78.6 million [11] - The estimate revisions trend for California Bank of Commerce is mixed, leading to a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [5] Industry Context - The Zacks Industry Rank for Banks - Southwest, which includes California Bank of Commerce, is currently in the top 41% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [10]

Financial Performance - Diluted earnings per share for Q2 2024 was $(0.68), down from $0.45 in Q1 2024 and $0.65 in Q2 2023[1] - The company reported a net loss of $5.9 million for Q2 2024, a decrease of $9.7 million, or 254%, compared to a net income of $3.8 million in Q1 2024[30] - Net loss for the second quarter of 2024 was $2.0 million, or $(0.24) per diluted share, compared to net income of $10.9 million, or $1.29 per diluted share in the prior year[47] - Net income for the period was a loss of $2.04 million, down from a profit of $10.89 million in the same period last year, representing a 119% decline[71] - Diluted earnings per share fell to $(0.24) from $1.29, reflecting a 119% decrease[71] Revenue and Income - Total revenue for Q2 2024 was $18.34 million, down from $19.42 million in Q1 2024 and $19.78 million in Q2 2023[19] - Revenue for the second quarter of 2024 was $18.3 million, a decrease of $1.1 million, or 6%, from $19.4 million in the first quarter of 2024[46] - Total revenue for the three months ended June 30, 2024, was $18,341 million, a decrease of 5.6% from $19,420 million for the three months ended March 31, 2024[78] - Total revenue for the six months ended June 30, 2024, was $37,761 million, a decrease of 4.8% from $39,645 million for the six months ended June 30, 2023[78] Interest Income and Expenses - Net interest income for Q2 2024 was $16.8 million, a decrease of $892,000, or 5%, from Q1 2024 and a decrease of $1.8 million, or 10%, from Q2 2023[5] - Net interest income after provision for credit losses was $3.32 million for Q2 2024, compared to $17.59 million in Q1 2024[27] - Year-to-date interest income rose to $54.13 million, a 3% increase from $52.71 million in 2023[71] - Total interest-bearing liabilities increased to $1.04 billion, with a total interest expense of $19.59 million, up 28% from the previous year[71] Non-Interest Income and Expenses - Non-interest income decreased by $187,000, or 11%, to $1.5 million compared to Q1 2024[3] - Non-interest income for the six months ended June 30, 2024 was $3.2 million, an increase of $981,000, or 44%, from $2.2 million for the same period in 2023[47] - The company’s total non-interest expense for Q2 2024 was $13.19 million, an increase from $13.70 million in Q1 2024 and $11.60 million in Q2 2023[19] - Non-interest expense for Q2 2024 was $13.2 million, an increase of 15% compared to $11.6 million in Q2 2023, primarily due to merger-related expenses[65] Assets and Liabilities - Total assets as of June 30, 2024, were $1.917 billion, a slight decrease from $1.923 billion as of March 31, 2024[15] - Total assets decreased to $1.92 billion as of June 30, 2024, from $2.00 billion a year earlier, primarily due to conservative new loan production and reduced liquidity[66] - Total gross loans decreased by $33.2 million, or 2%, to $1.49 billion at June 30, 2024, from $1.52 billion at March 31, 2024[53] - Total deposits were $1.639 billion as of June 30, 2024, compared to $1.625 billion as of December 31, 2023[15] - Total deposits decreased by $827,000 to $1.64 billion at June 30, 2024[49] Credit Quality - The allowance for credit losses on unfunded loan commitments was $1.8 million, or 0.33% of total unfunded loan commitments, as of June 30, 2024[8] - Provision for credit losses increased to $13.5 million, up from $126,000 in the first quarter of 2024[32] - Non-performing assets to total assets increased to 1.13% at June 30, 2024, compared to 0.08% at March 31, 2024, and 0.01% at June 30, 2023[23] - Nonperforming loans rose to $21,707 million in Q2 2024, compared to $1,452 million in Q1 2024, indicating a significant increase in credit risk[60] - The allowance for credit losses on loans was 1.10% of gross loans as of June 30, 2024, up from 1.05% in Q1 2024[60] Equity and Ratios - Book value per share decreased by $0.72, or 3%, to $23.07 as of June 30, 2024[4] - Shareholders' equity totaled $195.5 million at June 30, 2024, down from $200.7 million at March 31, 2024[41] - The tangible equity to tangible assets ratio improved to 10.35% as of June 30, 2024, from 10.12% at March 31, 2024[29] - The tangible equity to tangible assets ratio was 9.85% in Q2 2024, down from 10.09% in Q1 2024[64] Mergers and Future Outlook - The company is in the process of completing a merger with Southern California Bancorp, which may impact future performance and financial results[10] - The company expects to close the merger with Southern California Bancorp on July 31, 2024, aiming to enhance its market position and growth opportunities[46]

Financial Performance - The company reported a net loss of $5.9 million for Q2 2024, a decrease of $9.7 million compared to a net income of $3.8 million in Q1 2024 and a decrease of $11.3 million from $5.4 million in Q2 2023 [41][50] - For the six months ended June 30, 2024, the company reported a net loss of $2.0 million, down from a net income of $10.9 million for the same period in 2023 [42][41] - Total revenue for Q2 2024 was $18.3 million, a decrease of $1.1 million, or 6%, from $19.4 million in Q1 2024 [50][42] Net Interest Income and Margin - Net interest income for Q2 2024 was $16.8 million, down $892,000, or 5%, from $17.7 million in Q1 2024 and down $1.8 million, or 10%, from $18.6 million in Q2 2023 [43][50] - The company's net interest margin for Q2 2024 was 3.71%, compared to 3.89% in Q1 2024 and 3.93% in Q2 2023 [23][50] Provision for Credit Losses - The provision for credit losses on loans was $13.7 million for Q2 2024, compared to $301,000 in Q1 2024 and $340,000 in Q2 2023 [40][41] - Net loan charge-offs for Q2 2024 were $13.3 million, or 0.89% of gross loans, compared to net loan charge-offs of $348,000, or 0.02% in Q1 2024 [40][41] Deposits and Assets - Total deposits were $1.64 billion as of June 30, 2024, unchanged from March 31, 2024, but down $99.6 million, or 6%, from $1.74 billion at June 30, 2023 [9][51] - Total assets were $1.92 billion as of June 30, 2024, consistent with March 31, 2024, but down from $2.00 billion at June 30, 2023 [46][51] Efficiency Ratio - The company's efficiency ratio was 71.90% for Q2 2024, compared to 70.57% in Q1 2024 and 58.66% in Q2 2023 [8][28] - Excluding merger-related expenses, the adjusted efficiency ratio was 68.38% for Q2 2024 [28][50] Shareholder Equity and Capital Ratios - Shareholders' equity totaled $195.5 million at June 30, 2024, down from $200.7 million at March 31, 2024, but up from $184.2 million a year ago [11][51] - The company's total risk-based capital ratio was 13.93%, tier one capital ratio was 10.06%, and leverage ratio was 9.93%, all above regulatory standards [11][51]

Core Viewpoint - Monteverde & Associates PC is investigating California BanCorp regarding its proposed merger with Southern California Bancorp, where California BanCorp shareholders will own approximately 42.9% of the combined company [1]. Group 1 - Monteverde & Associates PC has been recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report [1]. - The shareholder vote for the merger is scheduled for July 17, 2024 [4]. - The firm operates from the Empire State Building in New York City [1][6]. Group 2 - The firm has a successful track record in recovering money for shareholders through class action lawsuits [6]. - The investigation is part of the firm's broader efforts to ensure that no company, director, or officer is above the law [5].

Core Points - Monteverde & Associates PC is investigating California BanCorp regarding its proposed merger with Southern California Bancorp, where California BanCorp shareholders will own approximately 42.9% of the combined company [2]. Group 1 - The shareholder vote for the merger is scheduled for July 17, 2024 [3]. - Monteverde & Associates PC has a successful track record in recovering money for shareholders and is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report [2][4].

Financial Performance - Adjusted net income for Q1 2024 was $4.841 million, down from $5.451 million in Q1 2023, representing a decrease of 11.2%[161] - Diluted earnings per share for Q1 2024 were $0.45, compared to $0.64 in Q1 2023; excluding merger-related expenses, diluted earnings per share were $0.57[164] - Net income for Q1 2024 was $3.8 million, representing a decrease of $1.6 million or 30% compared to $5.5 million in Q1 2023[186] - Total revenue for Q1 2024 was $19.420 million, down 2.24% from $19.864 million in Q1 2023[184] Loan and Deposit Trends - Average loans decreased by $63.6 million, or 4%, year-over-year, while average non-interest-bearing deposits decreased by $71.7 million, or 10%[166] - Gross loan balances decreased by $38.6 million, or 2%, from December 31, 2023, primarily due to reductions in commercial and industrial loans and real estate-related loans[178] - As of March 31, 2024, total deposits amounted to $1,639,516 thousand, a slight increase from $1,625,244 thousand on December 31, 2023, reflecting a growth of approximately 0.9%[244] Income and Expense Analysis - Net interest income for the three months ended March 31, 2024, was $17.715 million, a decrease of 5.55% from $18.757 million in the same period of 2023[184] - Non-interest income increased by $598,000, or 54%, in Q1 2024, primarily due to higher service charges and fees related to treasury management activities[174] - Total non-interest expense for Q1 2024 was $13.704 million, an increase of 16% from $11.843 million in Q1 2023[175] - Non-interest expense for Q1 2024 was $13.704 million, an increase of 15.63% from $11.843 million in Q1 2023[196] Credit Losses and Asset Quality - The provision for credit losses for Q1 2024 was $126,000, with $301,000 related to loans and $(195,000) for unfunded loan commitments[172] - The provision for credit losses was $301,000 in Q1 2024, down from $464,000 in Q1 2023[193] - Total nonperforming loans decreased to $1.452 million as of March 31, 2024, from $3.781 million at December 31, 2023[202] Capital Ratios and Regulatory Compliance - The Bank's Tier 1 risk-based capital ratio improved to 12.69% as of March 31, 2024, compared to 12.04% on December 31, 2023, representing an increase of 0.65 percentage points[247] - The total capital to risk-weighted assets ratio increased to 13.63% as of March 31, 2024, from 12.96% at the end of 2023, showing a rise of 0.67 percentage points[247] - The leverage ratio also improved to 12.72% as of March 31, 2024, compared to 12.14% on December 31, 2023, reflecting an increase of 0.58 percentage points[247] - The Company is subject to heightened regulatory compliance and legal risk, but management does not expect any legal actions to materially affect its financial condition[207] Asset and Deposit Composition - The composition of deposits as of March 31, 2024, included 39% in demand noninterest-bearing, 1% in demand interest-bearing, 40% in money market and savings, and 20% in time deposits[244] - The Company reported wholesale brokered time deposits of $261.6 million as of March 31, 2024, up from $244.0 million as of December 31, 2023, indicating a growth of approximately 7%[246] Methodology and Management Insights - The Company adopted the Current Expected Credit Losses (CECL) Methodology effective January 1, 2023, to estimate the allowance for credit losses[245] - Management believes the allowance for credit losses is adequate based on a quarterly evaluation of risk, although specific figures were not disclosed[245] - The Company maintains high levels of liquid balances in demand deposit accounts, primarily generated through core customer relationships[246] Efficiency Metrics - The efficiency ratio for Q1 2024 was 70.57%, compared to 59.62% in Q1 2023; excluding merger-related expenses, the efficiency ratio was 65.29%[175] - The adjusted efficiency ratio for Q1 2024 was 65.29%, compared to 59.62% in Q1 2023[186] - The average rate paid on interest-bearing liabilities increased by 114 basis points to 3.78% in Q1 2024 from 2.64% in Q1 2023[171] - The yield on average earning assets increased by 54 basis points to 6.01% in Q1 2024 from 5.47% in Q1 2023[188]

California Bank of Commerce (CALB) came out with quarterly earnings of $0.57 per share, beating the Zacks Consensus Estimate of $0.55 per share. This compares to earnings of $0.64 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.64%. A quarter ago, it was expected that this company would post earnings of $0.63 per share when it actually produced earnings of $0.63, delivering no surprise.Over the last four quarters, the compan ...