California Banp(US:CALB)2024-04-29 12:01Financial Performance - The Company reported net income of $3.8 million for Q1 2024, a decrease of $1.5 million, or 29%, from Q4 2023, and a decrease of $1.6 million, or 30%, from Q1 2023[3]. - Revenue for Q1 2024 was $19.4 million, down $500,000, or 2%, from $19.9 million in Q4 2023[5]. - Net interest income decreased by $859,000, or 5%, to $17.7 million in Q1 2024 compared to Q4 2023, primarily due to a lower balance of average earning assets[8]. - Non-interest income increased by 27% to $1,705 million compared to Q4 2023 and by 54% compared to Q1 2023[39]. - Net income for Q1 2024 was $3,817 million, a decrease of 29% from Q4 2023 and a decrease of 30% from Q1 2023[39]. - Diluted earnings per share for Q1 2024 was $0.45, down 29% from Q4 2023 and down 30% from Q1 2023[39]. - Adjusted net income for Q1 2024 was $4,841,000, down from $5,341,000 in Q4 2023, representing a decrease of 9.34%[54]. - Adjusted diluted earnings per share for Q1 2024 was $0.57, compared to $0.63 in Q4 2023, reflecting a decline of 9.52%[54]. Asset and Liability Management - Total assets decreased by $63.4 million to $1.92 billion as of March 31, 2024, compared to $1.99 billion at December 31, 2023[31]. - Total deposits increased by $14.3 million, or 1%, to $1.64 billion at March 31, 2024, from $1.63 billion at December 31, 2023[32]. - The Company had no outstanding borrowings at March 31, 2024, compared to $75.0 million at December 31, 2023[12]. - Total assets decreased by 3% to $1,922,541 million from Q4 2023 and by 6% from Q1 2023[40]. - Deposits increased by 1% to $1,639,516 million from Q4 2023 but decreased by 5% from Q1 2023[40]. - Total liabilities and shareholders' equity stood at $1,916,142, with total interest-bearing liabilities of $1,027,446[52]. Credit Quality - The provision for credit losses was $301,000 for Q1 2024, compared to $87,000 for Q4 2023[13]. - Non-performing assets to total assets were 0.08% at March 31, 2024, down from 0.19% at December 31, 2023[33]. - Nonperforming assets decreased to $1,452 million from $3,781 million in Q4 2023[41]. - The allowance for credit losses as a percentage of gross loans was 1.05% in Q1 2024, up from 1.03% in Q4 2023[41]. Capital Ratios - The Company's capital ratios remain healthy, with a tier I leverage ratio of 10.17% and a total risk-based capital ratio of 13.93%[7]. - Tier I leverage ratio improved to 10.17%, up from 9.61% in the previous quarter and 9.01% year-over-year[43]. - Tangible equity increased by 2% to $193,263 million from Q4 2023 and by 13% from Q1 2023[40]. - Book value per share increased to $23.79, up from $23.38 in the previous quarter and $21.37 year-over-year[43]. - Total shareholders' equity reached $200,685 million as of 03/31/24, up from $196,461 million on 12/31/23, reflecting an increase of approximately 1.1%[58]. Future Outlook - The Company expects to close its merger with Southern California Bancorp in Q3 2024, focusing on integration planning and optimizing the balance sheet[25]. - The company reported a risk of incurring loan losses, which is inherent in the banking business, and potential impacts from economic conditions[46]. - The company anticipates challenges in maintaining its internal growth rate due to economic uncertainties[46]. - The company plans to file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, in the second quarter of 2024[46].