California Banp(CALB) - 2024 Q4 - Annual Results

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]