California Banp(US:CALB)2025-06-07 19:12Financial Performance - The company reported adjusted 3Q24 EPS of $0.25, meeting outlook targets for NIM and expenses ahead of schedule[6] - Net Interest Margin (NIM) expanded by 13 bps QoQ to 2.93%[7, 8] - Adjusted Pre-Tax Pre-Provision (PTPP) income was $80 million in 3Q24, compared to $55.6 million in 2Q24[8, 10] - The company's Return on Average Tangible Common Equity (ROATCE) reached 7.30%[8] Balance Sheet Repositioning - The company sold $1.95 billion Civic loan portfolio, freeing up approximately $100 million of capital[6, 15] - $0.7 billion of investment securities were repositioned, expected to expand yield by approximately 270 bps, resulting in a $60 million pre-tax loss[6, 12] - Brokered deposits were reduced by approximately $1.85 billion at an average cost of ~5.35%[15] - The company paid off the remaining $545 million from the Bank Term Funding Program (BTFP) at a cost of ~5.4%[15] Balance Sheet Metrics - The company's Loan-to-Deposit (L/D) ratio was 87.8%, within the target range of 85% to 90%[6] - The Non-Interest-Bearing (NIB) deposit ratio was 29.1%, within the target range of 28% to 29%[6] - The company's CET 1 capital ratio increased by 18 bps to 10.45%[8, 30] Outlook - The company anticipates a NIM of 3.00% to 3.10% in 4Q24, assuming one additional 25 bps rate cut in mid-November[25] - The company expects noninterest expense to be between ~$195 million and $200 million in 4Q24[25]