CALIFORNIA BANCORP REPORTS NET INCOME OF $16.8 MILLION FOR THE FOURTH QUARTER AND $5.4 MILLION FOR THE FULL YEAR OF 2024

Core Insights - California BanCorp reported a net income of $16.8 million, or $0.51 per diluted share, for Q4 2024, a significant recovery from a net loss of $16.5 million in Q3 2024 and an increase from a net income of $4.4 million in Q4 2023 [2][7] - The company’s full-year net income for 2024 was $5.4 million, down from $25.9 million in 2023, largely due to merger-related expenses and a one-time provision for credit losses [2][9] Financial Performance - Q4 2024 net interest income was $44.5 million, up from $36.9 million in the prior quarter, driven by an increase in total interest and dividend income [8][42] - The net interest margin for Q4 2024 was 4.61%, compared to 4.43% in Q3 2024, reflecting a decrease in the cost of funds [11][12] - The company recorded a reversal of provision for credit losses of $3.8 million in Q4 2024, a significant improvement from a provision of $23.0 million in the prior quarter [14][15] Balance Sheet Highlights - Total assets decreased to $4.03 billion at December 31, 2024, down from $4.36 billion at September 30, 2024, primarily due to a reduction in cash and loans [22][24] - Total loans held for investment were $3.14 billion, a decrease of $60.5 million from the prior quarter, attributed to loan sales and payoffs [23][24] - Total deposits were $3.40 billion, a decrease of $342.2 million from the previous quarter, with noninterest-bearing demand deposits representing 37.0% of total deposits [24][25] Asset Quality - Nonperforming assets increased slightly to $30.6 million, or 0.76% of total assets, compared to $29.8 million, or 0.68% in the prior quarter [28][29] - The allowance for credit losses totaled $53.6 million, down from $57.6 million in the prior quarter, reflecting a reversal of provisions [32][33] Capital and Efficiency - Tangible book value per common share increased to $11.71 at December 31, 2024, up from $11.28 at September 30, 2024 [34] - The efficiency ratio improved to 57.4% in Q4 2024, compared to 98.9% in Q3 2024, indicating better operational efficiency [20][42]