Core Viewpoint - California BanCorp reported a net income of $15.7 million for Q3 2025, reflecting a strong performance compared to previous quarters and a significant recovery from a net loss in Q3 2024 [2][9]. Financial Performance - Net income for Q3 2025 was $15.7 million, or $0.48 per diluted share, compared to $14.1 million, or $0.43 per diluted share in Q2 2025, and a net loss of $16.5 million, or $0.59 per diluted share in Q3 2024 [2][9]. - Pre-tax, pre-provision income for Q3 was $21.8 million, an increase of $2.4 million from the prior quarter [9]. - Total noninterest income decreased to $2.7 million in Q3 2025, down from $2.9 million in Q2 2025 [17]. Asset Quality - The non-performing assets to total assets ratio improved to 0.38% at September 30, 2025, down from 0.46% at June 30, 2025 [28]. - Total non-performing loans decreased to $15.6 million, or 0.52% of total loans held for investment, compared to 0.61% in the prior quarter [28][34]. Capital and Shareholder Value - The tangible book value per common share increased to $13.39 at September 30, 2025, up from $12.82 at June 30, 2025 [35]. - The company repurchased 89,500 shares of common stock at an average price of $15.22, totaling $1.4 million under the stock repurchase program [37]. Deposits and Loans - Total deposits rose to $3.46 billion, an increase of $147.4 million or 4.4% from $3.31 billion at June 30, 2025 [24]. - Total loans held for investment were $2.99 billion, a slight decrease of $1.3 million compared to the previous quarter [22]. Interest Income and Margin - Net interest income for Q3 2025 was $42.5 million, up from $41.4 million in Q2 2025 [10]. - The net interest margin decreased to 4.52% from 4.61% in the prior quarter, primarily due to a decrease in the yield on total interest-earning assets [11]. Credit Losses - The company recorded a reversal of provision for credit losses of $15 thousand in Q3 2025, compared to a reversal of $634 thousand in the prior quarter [14]. - The allowance for credit losses was 1.46% of total loans held for investment at September 30, 2025 [34].

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]

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].