California Banp(CALB) - 2022 Q4 - Annual Report

Financial Performance - The company reported a net income of $21.1 million for the fiscal year ended December 31, 2022, compared to $13.4 million in the previous year, representing a growth of 57.5%[462] - Net income for the year ended December 31, 2022, was $21,108 million, an increase from $13,368 million in 2021, representing a growth of 58%[464] - The company reported total deposits of $1,791,740,000 as of December 31, 2022, up from $1,680,138,000 in 2021, indicating an increase of about 6.7%[566] - The company made a fully vested contribution to the 401(k) Plan of $792,000 in 2022, an increase from $745,000 in 2021, which is a rise of about 6.3%[589] Asset and Loan Growth - As of December 31, 2022, total consolidated assets were $2.04 billion, total gross loans were $1.59 billion, total deposits were $1.79 billion, and total shareholders' equity was $172.3 million[38] - Total shareholders' equity increased from $150.8 million in 2021 to $172.3 million in 2022, reflecting a growth of 14.2%[462] - Total gross loans as of December 31, 2022, amounted to $1,593,421,000, an increase from $1,376,649,000 as of December 31, 2021, representing a growth of approximately 15.8%[511] - The company’s total assets measured at fair value on a recurring basis were $47,012,000 as of December 31, 2022, down from $67,981,000 in 2021, indicating a decrease of approximately 30.7%[575] Risk and Credit Assessment - The company faces risks related to credit and lending, particularly in commercial real estate and construction portfolios[34] - The provision for loan losses was $3,775 million in 2022, compared to only $4 million in 2021, indicating a significant increase in risk assessment[464] - The allowance for loan losses as of December 31, 2022, was $17,005,000, up from $14,081,000 as of December 31, 2021, indicating an increase of about 20.5%[516] - Interest forgone on nonaccrual loans was $199,000 for the year ended December 31, 2022, compared to $43,000 in 2021, indicating a significant increase[496] Regulatory and Compliance - The company is subject to evolving federal and state banking regulations, which may impact its operations and capital requirements[35] - The company’s capital adequacy ratios as of December 31, 2022, are subject to regulatory requirements, which could impact financial statements if minimum capital requirements are not met[591] Cash Flow and Investments - Net cash provided by operating activities increased to $28,663 million in 2022 from $16,209 million in 2021, marking a rise of 77%[464] - The net cash used for investing activities was $271,973 million in 2022, a substantial increase from $59,013 million in 2021[464] - The company reported no cash flow from investing activities in December 2022, compared to $(30,000,000) in 2021, reflecting a significant reduction in investment outflows[596] Deposits and Borrowing - Customer deposits increased by $111,602 million in 2022, although this was a decrease from $147,932 million in 2021[464] - The Company had a borrowing capacity of approximately $393.0 million under its arrangement with the Federal Reserve Bank as of December 31, 2022, an increase from $218.9 million in 2021[500] - The available borrowing capacity under the Federal Home Loan Bank arrangement was approximately $335,100,000 as of December 31, 2022, compared to $88,100,000 as of December 31, 2021, representing an increase of about 279.5%[525] Operational Strategy - The company aims to achieve long-term success through measures such as earnings per share growth, return on assets, and core deposit growth[39] - The company is focused on attracting and retaining experienced bankers to support its business strategy and growth[34] Taxation - The Company reported a provision for income taxes of $8.798 million for the year ended December 31, 2022, compared to $5.094 million for 2021[560] - The effective tax rate increased to 29.4% in 2022 from 27.9% in 2021[560] Miscellaneous - The impact of the COVID-19 epidemic continues to pose risks to the company's operations and the broader economy[34] - Management assessed the effectiveness of internal control over financial reporting and determined that it was effective as of December 31, 2022[598]