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 ...

Financial Performance - The Company reported net income of $3.8 million for Q1 2024, a decrease of $1.5 million, or 29%, from Q4 2023, and a decrease of $1.6 million, or 30%, from Q1 2023[3]. - Revenue for Q1 2024 was $19.4 million, down $500,000, or 2%, from $19.9 million in Q4 2023[5]. - Net interest income decreased by $859,000, or 5%, to $17.7 million in Q1 2024 compared to Q4 2023, primarily due to a lower balance of average earning assets[8]. - Non-interest income increased by 27% to $1,705 million compared to Q4 2023 and by 54% compared to Q1 2023[39]. - Net income for Q1 2024 was $3,817 million, a decrease of 29% from Q4 2023 and a decrease of 30% from Q1 2023[39]. - Diluted earnings per share for Q1 2024 was $0.45, down 29% from Q4 2023 and down 30% from Q1 2023[39]. - Adjusted net income for Q1 2024 was $4,841,000, down from $5,341,000 in Q4 2023, representing a decrease of 9.34%[54]. - Adjusted diluted earnings per share for Q1 2024 was $0.57, compared to $0.63 in Q4 2023, reflecting a decline of 9.52%[54]. Asset and Liability Management - Total assets decreased by $63.4 million to $1.92 billion as of March 31, 2024, compared to $1.99 billion at December 31, 2023[31]. - Total deposits increased by $14.3 million, or 1%, to $1.64 billion at March 31, 2024, from $1.63 billion at December 31, 2023[32]. - The Company had no outstanding borrowings at March 31, 2024, compared to $75.0 million at December 31, 2023[12]. - Total assets decreased by 3% to $1,922,541 million from Q4 2023 and by 6% from Q1 2023[40]. - Deposits increased by 1% to $1,639,516 million from Q4 2023 but decreased by 5% from Q1 2023[40]. - Total liabilities and shareholders' equity stood at $1,916,142, with total interest-bearing liabilities of $1,027,446[52]. Credit Quality - The provision for credit losses was $301,000 for Q1 2024, compared to $87,000 for Q4 2023[13]. - Non-performing assets to total assets were 0.08% at March 31, 2024, down from 0.19% at December 31, 2023[33]. - Nonperforming assets decreased to $1,452 million from $3,781 million in Q4 2023[41]. - The allowance for credit losses as a percentage of gross loans was 1.05% in Q1 2024, up from 1.03% in Q4 2023[41]. Capital Ratios - The Company's capital ratios remain healthy, with a tier I leverage ratio of 10.17% and a total risk-based capital ratio of 13.93%[7]. - Tier I leverage ratio improved to 10.17%, up from 9.61% in the previous quarter and 9.01% year-over-year[43]. - Tangible equity increased by 2% to $193,263 million from Q4 2023 and by 13% from Q1 2023[40]. - Book value per share increased to $23.79, up from $23.38 in the previous quarter and $21.37 year-over-year[43]. - Total shareholders' equity reached $200,685 million as of 03/31/24, up from $196,461 million on 12/31/23, reflecting an increase of approximately 1.1%[58]. Future Outlook - The Company expects to close its merger with Southern California Bancorp in Q3 2024, focusing on integration planning and optimizing the balance sheet[25]. - The company reported a risk of incurring loan losses, which is inherent in the banking business, and potential impacts from economic conditions[46]. - The company anticipates challenges in maintaining its internal growth rate due to economic uncertainties[46]. - The company plans to file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, in the second quarter of 2024[46].

OAKLAND, Calif., April 29, 2024 (GLOBE NEWSWIRE) -- California BanCorp (NASDAQ:CALB) (the "Company"), whose subsidiary is California Bank of Commerce, announced today its financial results for the first quarter ended March 31, 2024. The Company reported net income of $3.8 million for the first quarter of 2024, representing a decrease of $1.5 million, or 29%, compared to $5.3 million for the fourth quarter of 2023 and a decrease of $1.6 million, or 30%, compared to $5.4 million in the first quarter of 2023. ...

Financial Position - As of December 31, 2023, the company had total consolidated assets of $1.99 billion, total gross loans of $1.56 billion, total deposits of $1.63 billion, and total shareholders' equity of $196.5 million[17]. - The Company had $460.0 million in reciprocal deposits as of December 31, 2023, compared to $46.9 million at the end of 2022, with insured deposits representing 61% of the total deposit portfolio[407]. - The Tier 1 risk-based capital ratio improved to 12.04% as of December 31, 2023, from 10.54% a year earlier, while the total capital to risk-weighted assets ratio increased to 12.96% from 11.40%[414]. Loan Portfolio Composition - Commercial and industrial loans constituted approximately $626.6 million, or 40% of the company's loan portfolio[27]. - Real estate loans, including commercial real estate loans, made up approximately $849.3 million, or 54% of the loan portfolio[31]. - Construction and development loans accounted for approximately $44.2 million, or 3% of the loan portfolio[30]. - Consumer loans totaled approximately $35.4 million, representing about 2% of the loan portfolio[35]. - The Company’s loan portfolio composition and maturity distribution were detailed, indicating a focus on managing loan performance and risk[400]. Credit Quality and Risks - Total nonperforming loans increased to $3.781 million as of December 31, 2023, from $1.250 million a year earlier, resulting in a nonperforming loans to gross loans ratio of 0.24% compared to 0.08%[402]. - The allowance for credit losses on loans to nonperforming loans ratio was 423.91% as of December 31, 2023, down from 1360.40% the previous year[402]. - The Company reported an ending balance of $16.028 million for the allowance for credit losses as of December 31, 2023, compared to $17.005 million the previous year[403]. - The aggregate amount of time deposits exceeding the FDIC insurance limit decreased to $33.9 million as of December 31, 2023, from $43.6 million a year earlier[409]. - The company faces significant risks related to its proposed merger with Southern California Bancorp, including potential disruptions to business and challenges in retaining employees and customers[14]. Tax and Regulatory Environment - The income tax expense for the year ended December 31, 2023, was $9.0 million, compared to $8.8 million for the previous year, with effective tax rates of 29.3% and 29.4% respectively[397]. - The Company adopted a new accounting standard for credit losses effective January 1, 2023, impacting the reporting of prior period amounts[392]. Market Position and Strategy - The banking industry is highly competitive, with the company facing competition from various local, regional, and national financial institutions[21]. - The company emphasizes maintaining close relationships with customers for ongoing credit monitoring and loan servicing[24]. - The company is positioned to be moderately asset sensitive, with earnings expected to increase in a rising rate environment[412].

California Bank of Commerce (CALB) came out with quarterly earnings of $0.63 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.91 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post earnings of $0.63 per share when it actually produced earnings of $0.64, delivering a surprise of 1.59%.Over the last four quarters, the company has surpassed consensus EPS estimates two times.California Bank of C ...

OAKLAND, Calif., Jan. 30, 2024 (GLOBE NEWSWIRE) -- California BanCorp (NASDAQ:CALB) (the "Company"), whose subsidiary is California Bank of Commerce, announced today its financial results for the fourth quarter and twelve months ended December 31, 2023. The Company reported net income of $5.3 million for the fourth quarter of 2023, compared to $5.4 million for the third quarter of 2023 and $7.7 million for the fourth quarter of 2022. For the twelve months ended December 31, 2023, net income was $21.6 millio ...

Interest Income and Assets - Interest income increased by $6.9 million in Q3 2023 compared to Q3 2022, primarily due to an increase in the prime rate from 6.25% to 8.50%[63] - The yield on average earning assets rose by 129 basis points to 5.83% in Q3 2023 from 4.54% in Q3 2022, with the yield on total average gross loans increasing to 6.09%[90] - The average total interest-earning assets were $1.91 billion in Q3 2023, up from $1.85 billion in the same period in 2022[90] - Interest income increased by $26.0 million for the nine months ended September 30, 2023, primarily due to higher yields on the loan portfolio, with interest earned on loans reaching $69.8 million, a 39% increase from $50.3 million in the same period of 2022[101] - Total interest-earning assets amounted to $1.901 billion with an average yield of 5.68% for the nine months ended September 30, 2023, compared to $1.826 billion and 4.01% in the same period of 2022[100] - Average total interest-earning assets rose to $1.90 billion, compared to $1.83 billion for the same period in 2022, primarily due to loan portfolio growth[122] Credit Losses and Allowances - The provision for credit losses was $121,000 for Q3 2023, influenced by changes in forecast assumptions and a specific reserve for a previously charged-off SBA loan[70] - The allowance for credit losses at September 30, 2023, was $2.047 million, reflecting a provision of $170,000 for the quarter[76] - The recorded investment in loans individually evaluated for expected credit losses did not require an allowance for credit losses as of the reporting dates[67] - The allowance for credit losses (ACL) on loans is maintained at a level deemed appropriate by management, based on an evaluation of the loan portfolio and economic conditions[104] - The provision for credit losses on loans was $1.1 million for the nine months ended September 30, 2023, down from $2.7 million in the same period last year[127] - The allowance for credit losses on loans as a percentage of outstanding loans was 1.01% as of September 30, 2023, compared to 1.07% at December 31, 2022[127] Non-Interest Income and Expenses - Non-interest income decreased by $190,000, or 13%, in Q3 2023 compared to Q3 2022, primarily due to fewer prepayment penalties assessed on loans[95] - Non-interest expense for Q3 2023 was $11.9 million, an increase of $200,000, or 2%, from $11.2 million in Q3 2022, driven by higher salaries and benefits[96] - Total non-interest expense for the nine months ended September 30, 2023, was $35.3 million, an increase of $2.3 million, or 7%, from $32.9 million in the same period of 2022[103] - Non-interest income decreased by $1.9 million to $3.5 million, a decline of 35% compared to $5.4 million in the prior year[128] - Non-interest expense increased to $35.3 million for the nine months ended September 30, 2023, up from $33.0 million in 2022, representing a 7% increase[129] Loans and Borrowing - Average commercial and real estate loans increased by $73.0 million and $82.5 million year over year, contributing to a total increase in average loan balances of $116.7 million[99] - The company reported a decrease in average SBA loans of $27.0 million due to PPP loan forgiveness, impacting overall loan growth[99] - The Company had approximately $414.0 million pledged and $368.5 million available under its borrowing arrangement with the Federal Home Loan Bank as of September 30, 2023[72] Shareholder Equity and Earnings - The company reported a net income of $5,401 thousand for the quarter ended September 30, 2023, compared to $5,440 thousand in the previous quarter[153] - For the nine months ended September 30, 2023, net income increased to $16.3 million, up 21% from $13.4 million in the same period of 2022[121] - Basic earnings per share for the nine months ended September 30, 2023, was $1.95, compared to $1.62 for the same period in 2022[140] - Total shareholders' equity increased to $190,115 thousand as of September 30, 2023, up from $184,235 thousand at June 30, 2023[153] - Retained earnings rose to $78,824 thousand as of September 30, 2023, compared to $73,423 thousand at June 30, 2023[153] Investment Securities - The company did not purchase any investment securities during the nine months ended September 30, 2023, while it purchased $36.0 million in available for sale securities in the same period of 2022[109] - As of September 30, 2023, the total investment securities amounted to $151,098 thousand, with $46,081 thousand available for sale at amortized cost[148] - The company had 54 securities in an unrealized loss position as of September 30, 2023, indicating potential market risk exposure[150] - The total unrealized losses for investment securities were aggregated by major security type, indicating ongoing market volatility[150] Accounting Standards - The Company adopted the current expected credit losses (CECL) accounting standard on January 1, 2023, which did not have a material impact on the financial statements[141] - The company adopted a new accounting standard, resulting in a minor adjustment to retained earnings of $(99) thousand during the quarter[153]