Financial Performance - Net income for the first quarter of 2025 was $16.9 million, or $0.52 per diluted share, compared to $16.8 million, or $0.51 per diluted share in the previous quarter[3]. - Net income for Q1 2025 was $16,853,000, slightly up from $16,772,000 in Q4 2024 and significantly higher than $4,935,000 in Q1 2024[36]. - Adjusted net income for Q1 2025 was $16,853,000, compared to $17,225,000 in Q4 2024 and $5,482,000 in Q1 2024[45]. - The company reported a pre-tax, pre-provision income of $19,901 thousand for Q1 2025, compared to $19,420 thousand in Q4 2024 and $6,926 thousand in Q1 2024, highlighting strong operational performance[41]. - Return on average assets increased to 1.71% in Q1 2025 from 1.60% in Q4 2024, indicating enhanced profitability[36]. - Return on average assets increased to 1.71% in Q1 2025 from 1.60% in Q4 2024, reflecting enhanced asset utilization[46]. Asset and Loan Management - Total assets decreased by $48.6 million, or 1.2%, to $3.98 billion at March 31, 2025, primarily due to a decrease in loans[18]. - Total loans held for investment were $3.07 billion, a decrease of $70.4 million from December 31, 2024, with new originations of $69.4 million offset by loan sales and payoffs of $115.1 million[19]. - Total loans held for investment decreased to $3,068,774,000 in Q1 2025 from $3,139,165,000 in Q4 2024[40]. - Non-performing loans decreased to $22.8 million, or 0.74% of total loans held for investment, compared to $26.5 million, or 0.85% at December 31, 2024[23]. - Special mention loans increased by $5.1 million to $74.4 million at March 31, 2025, primarily due to downgrades from Pass loans[25]. Income and Expenses - Net interest income for Q1 2025 was $42,255,000, a decrease of 4.6% from $44,541,000 in Q4 2024 and an increase of 106.5% from $20,494,000 in Q1 2024[36]. - Total interest and dividend income for Q1 2025 was $56,825 thousand, a decrease of 9.3% from $62,558 thousand in Q4 2024 and an increase of 81.5% from $31,264 thousand in Q1 2024[41]. - Total noninterest expense for Q1 2025 was $24,920 thousand, a decrease of 4.4% from $26,125 thousand in Q4 2024 and an increase of 66.5% from $14,981 thousand in Q1 2024[41]. - Noninterest income increased to $2.6 million, up from $1.0 million in the previous quarter, primarily due to a gain on sale of loans[13]. - Noninterest income increased to $2,566,000 in Q1 2025, up 155.5% from $1,004,000 in Q4 2024 and 81.5% from $1,413,000 in Q1 2024[36]. Capital and Equity - Tangible book value per common share increased to $12.29, up $0.58 from the prior quarter[5]. - Tangible book value per common share increased to $12.29 at March 31, 2025, from $11.71 at December 31, 2024, primarily driven by net income of $16.9 million[29]. - Shareholders' equity increased to $531,384,000 in Q1 2025 from $511,836,000 in Q4 2024, reflecting a stronger capital position[37]. - Tangible common equity as a percentage of total tangible assets increased to 10.34% from 9.69% in the prior quarter[29]. - The Company's preliminary capital ratios exceeded the minimums required to be "well-capitalized" at March 31, 2025[30]. Deposits and Funding - Total deposits decreased by $56.3 million, or 1.7%, to $3.34 billion at March 31, 2025[5]. - Total deposits decreased to $3.34 billion as of March 31, 2025, down $56.3 million from December 31, 2024, with noninterest-bearing demand deposits increasing to $1.29 billion, or 38.7% of total deposits[20]. - The cost of deposits decreased to 1.59%, down 28 basis points from the prior quarter, due to a deposit repricing strategy[9]. - Average noninterest-bearing deposits represented 37.37% of average total deposits in Q1 2025, up from 36.27% in Q4 2024 and 34.35% in Q1 2024, showing a positive trend in deposit composition[43]. - Total available borrowing capacity was $1.13 billion at March 31, 2025, including $687.8 million from an FHLB secured line of credit[22]. Credit Quality - The allowance for credit losses totaled $48.3 million at March 31, 2025, down from $53.6 million at December 31, 2024, with net charge-offs of $1.5 million for the quarter[27]. - The allowance for credit losses decreased to $48,324,000 in Q1 2025 from $53,643,000 in Q4 2024, reflecting improved asset quality[38]. - Total non-performing assets decreased to $26.9 million, or 0.68% of total assets, compared to $30.6 million, or 0.76% at December 31, 2024[23]. - The Company recorded a reversal of credit losses of $3.8 million, consistent with the prior quarter, with total net charge-offs of $1.5 million[11].
Southern California Bancorp(BCAL) - 2025 Q1 - Quarterly Results