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 ...

Oakland, CA – April 29, 2024 – 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. Exhibit 99.1 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. Excludi ...

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 ...

FORM 10-Q California 82-1751097 (State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.) 1300 Clay Street, Suite 500 Oakland, California 94612 (Address of principal executive offices) (510) 457-3737 (Registrant's telephone number, including area code) Page Part I - Financial Information Item 1. Financial Statements 3 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 3. Quantitative and Qualitative Disclosures About ...

Part I [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents California Bancorp's unaudited consolidated financial statements, reflecting CECL adoption and showing slight asset decrease with significant net income growth [Consolidated Statements of Financial Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets slightly decreased to $2.01 billion as of June 30, 2023, driven by lower cash and loans, while shareholders' equity increased Consolidated Balance Sheet (Unaudited) | (In thousands) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Total cash and cash equivalents | $207,667 | $232,382 | | Total investment securities | $151,129 | $155,878 | | Loans, net | $1,569,546 | $1,578,456 | | **Total assets** | **$2,005,646** | **$2,042,215** | | **Liabilities & Equity** | | | | Total deposits | $1,738,296 | $1,791,740 | | Total liabilities | $1,821,411 | $1,869,961 | | Total shareholders' equity | $184,235 | $172,254 | | **Total liabilities and shareholders' equity** | **$2,005,646** | **$2,042,215** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Net income significantly increased by 28% for Q2 2023 and 38% for the six-month period, driven by higher net interest income Income Statement Highlights (Unaudited, in thousands, except per share data) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net interest income | $18,646 | $16,223 | $37,403 | $30,749 | | Provision for credit losses | $444 | $925 | $802 | $1,875 | | Net income | $5,440 | $4,244 | $10,891 | $7,917 | | Diluted EPS | $0.65 | $0.51 | $1.29 | $0.94 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly improved, while investing activities provided cash and financing activities used cash, resulting in a $24.7 million decrease in cash Cash Flow Summary (Unaudited, in thousands) | Cash Flow Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $15,792 | $8,307 | | Net cash provided by (used for) investing activities | $12,931 | $(185,963) | | Net cash used for financing activities | $(53,438) | $(134,365) | | **Decrease in cash and cash equivalents** | **$(24,715)** | **$(312,021)** | [Notes to Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Detailed disclosures cover accounting standards adoption, particularly CECL, and breakdowns of financial instruments, with CECL transition increasing retained earnings by $334,000 - The Company adopted the **Current Expected Credit Loss (CECL) standard (ASC 326)** on January 1, 2023, replacing the incurred loss methodology with an expected loss methodology[65](index=65&type=chunk) - The transition to CECL resulted in a **decrease in the allowance for credit losses on loans of $1.8 million**, an **increase in the allowance for unfunded commitments of $1.4 million**, and an **allowance for held-to-maturity securities of $110,000**, leading to a **net increase in retained earnings of $334,000**[41](index=41&type=chunk) - The Company completed an interim goodwill impairment analysis as of June 30, 2023, and determined there was **no impairment**[20](index=20&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and results, highlighting significant net income growth driven by net interest income, alongside slight asset decrease and stable credit quality - Net income for Q2 2023 was **$5.4 million**, a **28% increase** from Q2 2022, primarily due to a **$2.4 million (15%) increase** in net interest income[160](index=160&type=chunk)[185](index=185&type=chunk) - Net income for the first six months of 2023 was **$10.9 million**, a **38% increase** from the prior year period, driven by a **$6.7 million (22%) increase** in net interest income[223](index=223&type=chunk)[224](index=224&type=chunk) - Total assets **decreased slightly** from **$2.04 billion** at year-end 2022 to **$2.01 billion** at June 30, 2023, attributed to seasonal deposit outflows and reduced borrowings[235](index=235&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Operational results improved with net interest margin expanding to 3.93% in Q2 2023, while provision for credit losses decreased and non-interest income declined Q2 2023 vs Q2 2022 Performance (in thousands) | Metric | Q2 2023 | Q2 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | $18,646 | $16,223 | +15% | | Provision for Credit Losses | $444 | $925 | -52% | | Non-interest Income | $1,135 | $1,394 | -19% | | Non-interest Expense | $11,603 | $10,819 | +7% | | Net Income | $5,440 | $4,244 | +28% | - The net interest margin for Q2 2023 **increased by 28 basis points to 3.93%** compared to 3.65% in Q2 2022, driven by the rising interest rate environment[185](index=185&type=chunk) - For the six months ended June 30, 2023, non-interest income **decreased by 43%** primarily due to a **$1.4 million gain** on the sale of a solar loan portfolio in the prior year period[206](index=206&type=chunk) [Financial Condition](index=38&type=section&id=Financial%20Condition) Financial condition remained stable with a slight decrease in gross loans, significant reduction in nonperforming assets, and deposits decreasing to $1.74 billion Loan Portfolio Composition (in thousands) | Loan Type | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Commercial and industrial | $622,270 | $634,535 | | Real estate - other | $856,344 | $848,241 | | Real estate - construction and land | $60,595 | $63,730 | | **Total loans, gross** | **$1,583,631** | **$1,593,421** | - Nonperforming loans **decreased dramatically to $181,000 (0.01% of gross loans)** at June 30, 2023, from **$1.25 million (0.08% of gross loans)** at December 31, 2022[214](index=214&type=chunk) - At June 30, 2023, **60% of the total deposit portfolio was insured**, with uninsured deposits representing the remaining **40%**[218](index=218&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity through various sources and remains well-capitalized, with the Bank's Tier 1 risk-based capital ratio improving to 11.56% - The company maintains **significant borrowing capacity**, including **$411.3 million** available from the FHLB and **$344.8 million** from the FRB as of June 30, 2023[94](index=94&type=chunk)[118](index=118&type=chunk) Bank Capital Ratios | Ratio | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Tier 1 risk-based capital | 11.56% | 10.54% | | Total capital to risk-weighted assets | 12.46% | 11.40% | | Leverage ratio | 11.42% | 10.23% | - The Bank's capital ratios **exceeded the minimums** to be considered **'well-capitalized'** under FDIC regulations as of June 30, 2023[266](index=266&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, California Bancorp is not required to provide the information for this item - The company is **not required** to provide information for this item as it qualifies as a **smaller reporting company**[250](index=250&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2023 - Based on an evaluation as of June 30, 2023, the CEO and CFO concluded that the Company's disclosure controls and procedures were **effective**[251](index=251&type=chunk) - **No changes** in internal control over financial reporting occurred during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, such controls[252](index=252&type=chunk) Part II [Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is party to routine legal actions incidental to its business - The company is involved in routine legal proceedings incidental to its business, which are **not expected to have a material adverse effect**[253](index=253&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) This section updates the risk factors from the 2022 Form 10-K, highlighting new risks related to banking industry confidence and potential securities portfolio losses - Adverse developments in the banking industry, such as recent high-profile bank failures, have **eroded customer confidence** and could **negatively impact the Bank's liquidity, funding costs, and stock price**[268](index=268&type=chunk) - Due to rising interest rates, the company has **unrealized losses** in its securities portfolio, and a forced sale could result in **significant realized losses, impairing capital and financial condition**[269](index=269&type=chunk)[255](index=255&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the period - **None**[255](index=255&type=chunk)[270](index=270&type=chunk) [Other Information](index=46&type=section&id=Item%205.%20Other%20Information) There is no other information to report for this item - **None**[256](index=256&type=chunk) [Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer, and Inline XBRL documents - Exhibits filed include **CEO and CFO certifications** pursuant to Sarbanes-Oxley Sections 302 and 906, and various **Inline XBRL documents**[271](index=271&type=chunk)[256](index=256&type=chunk)

FORM 10-Q For the quarterly period ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 California 82-1751097 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) (510) 457-3737 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding ...