CALIFORNIA BANCORP REPORTS NET INCOME OF $16.9 MILLION FOR THE FIRST QUARTER OF 2025

Core Viewpoint - California BanCorp reported strong financial results for the first quarter of 2025, with net income of $16.9 million, reflecting a slight increase from the previous quarter and a significant rise compared to the same quarter last year. The company continues to focus on derisking its balance sheet and enhancing shareholder value post-merger [2][3]. Financial Performance - Net income for Q1 2025 was $16.9 million, or $0.52 per diluted share, compared to $16.8 million, or $0.51 per diluted share in Q4 2024, and $4.9 million, or $0.26 per diluted share in Q1 2024 [2][5]. - Pre-tax, pre-provision income (non-GAAP) was $19.9 million, an increase of $481 thousand from the prior quarter [5]. - The net interest margin improved to 4.65%, up from 4.61% in the previous quarter, driven by a decrease in the cost of funds [6][9]. Asset Quality - Total non-performing assets decreased to $26.9 million, or 0.68% of total assets, compared to $30.6 million, or 0.76% of total assets at the end of the previous quarter [25][26]. - The allowance for credit losses totaled $48.3 million, down from $53.6 million at the end of the previous quarter, reflecting a reversal of credit losses [29][30]. Balance Sheet Highlights - Total assets at March 31, 2025, were $3.98 billion, a decrease of $48.6 million from December 31, 2024 [19]. - Total loans held for investment were $3.07 billion, a decrease of $70.4 million from the previous quarter [20]. - Total deposits were $3.34 billion, down $56.3 million from December 31, 2024, primarily due to a decrease in brokered deposits [22]. Capital Position - Tangible book value per common share increased to $12.29, up from $11.71 at the end of the previous quarter [31]. - The company's preliminary capital ratios exceed the minimums required to be classified as "well-capitalized" [32]. Noninterest Income and Expenses - Noninterest income rose to $2.6 million, an increase of $1.6 million compared to the previous quarter, driven by gains on loan sales [14]. - Total noninterest expense decreased to $24.9 million, down from $26.1 million in the prior quarter, largely due to a reduction in merger-related expenses [15][16]. Efficiency Metrics - The efficiency ratio (non-GAAP) improved to 55.6%, compared to 57.4% in the previous quarter, indicating better cost management [17].