Financial Performance - Net income for Q2 2024 was $190 thousand, a significant decrease from $4.9 million in Q1 2024 and $6.7 million in Q2 2023, resulting in diluted earnings per share of $0.01 compared to $0.26 in the prior quarter[1][4] - Net income for the three months ended June 30, 2024, was $190 thousand, significantly lower than $6,718 thousand in the same period last year, a decrease of 97.17%[41] - Adjusted net income (non-GAAP) for the six months ended June 30, 2024, was $6,718,000, compared to $6,084,000 for the same period in 2023[53] Asset and Loan Management - Total assets remained stable at $2.29 billion, with total loans decreasing slightly to $1.88 billion, and total deposits increased by $5.3 million to $1.94 billion[4][20] - Total loans, including loans held for sale, were $1,884,599 thousand as of June 30, 2024, compared to $1,886,085 thousand in the previous quarter and $1,964,791 thousand year-over-year[35] - Total loans held for investment decreased to $1,877,617 thousand from $1,883,282 thousand, a decline of 0.2%[39] Noninterest Income and Expenses - Noninterest income decreased to $1.2 million from $1.4 million in the prior quarter, impacted by the absence of gains from SBA 7A loan sales[14] - Noninterest expense increased to $19,005 thousand for the three months ended June 30, 2024, compared to $14,981 thousand in the previous quarter and $14,607 thousand year-over-year[35] - Total noninterest expense increased to $19,005 thousand for the three months ended June 30, 2024, up from $14,607 thousand in the same period last year, marking a rise of 30.06%[41] Credit Losses and Provisions - The provision for credit losses was $2.9 million, a significant increase from a reversal of $331 thousand in the prior quarter, reflecting concerns over economic conditions in California[13] - Provision for credit losses was $2,893 thousand for the three months ended June 30, 2024, compared to a reversal of $331 thousand in the previous quarter and a reversal of $15 thousand year-over-year[35] - The allowance for credit losses increased to $24.6 million at June 30, 2024, compared to $23.2 million at March 31, 2024, reflecting a $3.0 million provision for credit losses[27] Capital and Equity - Shareholders' equity increased to $293,219 thousand from $292,499 thousand, reflecting a growth of 0.2%[39] - The Bank's leverage capital ratio and total risk-based capital ratio were 12.16% and 14.34%, respectively, at June 30, 2024[29] - Tangible common equity ratio was 11.28% as of June 30, 2024, compared to 10.73% as of June 30, 2023[55] Mergers and Acquisitions - Shareholders approved the merger with California BanCorp, expected to close on July 31, 2024, aiming to create a premier commercial banking franchise in California[3] Interest Income and Margin - The net interest margin increased to 3.94% from 3.80% in the prior quarter, with the yield on total interest-earning assets rising to 5.97% and the yield on average total loans increasing to 6.21%[2][9] - Net interest income for the three months ended June 30, 2024, was $21,007 thousand, an increase from $20,494 thousand in the previous quarter and a decrease from $23,426 thousand year-over-year[35] - Total interest and dividend income for the three months ended June 30, 2024, was $31,849 thousand, an increase from $30,260 thousand in the same period last year, representing a growth of 5.24%[41] Deposits and Funding - Noninterest-bearing demand deposits increased to $666.6 million, representing 34.4% of total deposits, up from 33.8% in the prior quarter[4][20] - The cost of funds rose to 2.21%, an increase of 4 basis points from the prior quarter, driven by higher interest-bearing deposit costs[6][10] - Total deposits reached $1,935,862 thousand, a slight increase from $1,930,544 thousand, indicating a growth of 0.3%[39] Non-Performing Assets - As of June 30, 2024, the Company had total non-performing assets of $4.7 million, representing 0.20% of total assets, a decrease from $19.3 million or 0.84% at March 31, 2024[23] - Total non-performing loans decreased to $4.7 million, or 0.25% of total loans held for investment, down from $6.2 million or 0.33% at March 31, 2024[25] - The decrease in non-performing assets was largely due to the sale of $13.1 million of other real estate owned in the second quarter of 2024[24]
Southern California Bancorp(BCAL) - 2024 Q2 - Quarterly Results