Core Insights - California BanCorp reported a net income of $14.1 million, or $0.43 per diluted share, for Q2 2025, a decrease from $16.9 million, or $0.52 per diluted share in Q1 2025, and a significant increase from $190 thousand, or $0.01 per diluted share in Q2 2024 [2][9] - The company has successfully integrated operations post-merger and is focusing on organic growth while reducing credit risk in its loan portfolio [3][5] Financial Performance - Net interest income for Q2 2025 was $41.4 million, down from $42.3 million in the prior quarter, primarily due to a decrease in total interest and dividend income [10] - The net interest margin decreased to 4.61% from 4.65% in the previous quarter, attributed to a decline in the yield on total average interest-earning assets [11] - The company recorded a reversal of credit losses of $634 thousand in Q2 2025, compared to $3.8 million in the prior quarter [14] Asset Quality - Non-performing assets to total assets ratio improved to 0.46% at June 30, 2025, down from 0.68% at March 31, 2025, indicating better asset quality [28] - Total loans held for investment decreased to $2.99 billion, a reduction of $77.2 million from the previous quarter [22] - The allowance for loan losses was $41.1 million, or 1.37% of total loans held for investment, down from $45.8 million, or 1.49% in the prior quarter [33] Deposits and Borrowings - Total deposits decreased to $3.31 billion, a decline of $30.2 million from March 31, 2025, with noninterest-bearing demand deposits decreasing by 5.8% [24] - The company redeemed $18 million of subordinated notes, contributing to a decrease in total borrowings to $52.9 million [27] Capital and Ratios - Tangible book value per common share increased to $12.82 at June 30, 2025, from $12.29 at March 31, 2025 [35] - The company's preliminary capital ratios exceed the minimums required to be classified as "well-capitalized" [36]
CALIFORNIA BANCORP REPORTS NET INCOME OF $14.1 MILLION FOR THE SECOND QUARTER OF 2025