CALIFORNIA BANCORP REPORTS NET INCOME OF $16.4 MILLION FOR THE FOURTH QUARTER AND $63.1 MILLION FOR THE FULL YEAR OF 2025

Core Viewpoint - California BanCorp reported strong financial performance for the fourth quarter and full year of 2025, highlighting a transformational year marked by a successful merger and improved credit profile [3][10]. Financial Performance - The company reported net income of $16.4 million, or $0.50 per diluted share, for Q4 2025, an increase from $15.7 million, or $0.48 per diluted share, in Q3 2025, and $16.8 million, or $0.51 per diluted share, in Q4 2024 [2][7]. - For the full year 2025, net income was $63.1 million, or $1.93 per diluted share, compared to $5.4 million, or $0.22 per diluted share, in 2024 [2][10]. Balance Sheet and Asset Quality - Total assets decreased by $67.8 million, or 1.7%, to $4.03 billion as of December 31, 2025, primarily due to a reduction in cash and cash equivalents [20]. - Total loans, including loans held for sale, increased to $3.06 billion, up $62.0 million from the previous quarter [6][21]. - Nonperforming assets to total assets ratio was 0.40% at December 31, 2025, compared to 0.38% at September 30, 2025 [26]. Credit Quality - The company recorded a reversal of provision for credit losses of $4.4 million in Q4 2025, compared to $15 thousand in the prior quarter [14]. - The allowance for credit losses was 1.20% of total loans held for investment at December 31, 2025, down from 1.46% at September 30, 2025 [32]. Deposits and Funding - Total deposits decreased by $89.1 million, or 2.6%, to $3.37 billion at December 31, 2025 [22]. - The cost of deposits was 1.43%, down from 1.59% in the prior quarter [12][44]. Capital Management - The company repurchased 122,428 shares of common stock at an average price of $16.37, totaling $2.0 million under the stock repurchase program [36]. - Tangible book value per common share increased to $13.79 at December 31, 2025, up from $13.39 at September 30, 2025 [34]. Operational Efficiency - The efficiency ratio for Q4 2025 was 60.80%, compared to 51.75% in the prior quarter [18][44]. - Excluding severance costs and litigation settlements, the adjusted efficiency ratio would have been 52.72% [18].