California Banp(CALB) - 2024 Q2 - Quarterly Results

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]