California BanCorp, a California corporation headquartered in Del Mar, recently released its 10-Q filing, providing insights into its financial condition and operations. The company completed a reorganization in May 2020, making California Bank of Commerce, N.A. its wholly owned subsidiary. The Bank operates under a national charter and is regulated by the Office of Comptroller of the Currency.
Most notably, California BanCorp completed an all-stock merger with California BanCorp ("CALB") on July 31, 2024. This merger expanded the company's footprint into Northern California and added CALB's one full-service bank branch and four loan production offices in Northern California to the Bank's 13 full-service bank branches in the Southern California region, bringing the total to 14 branches.
The company's financial highlights for the first quarter of 2025 include: Net interest income of $42,255, down from $44,541 in the previous quarter. Reversal of credit losses amounting to $(3,776). Noninterest income of $2,566, an increase from $1,004 in the previous quarter. Noninterest expense of $24,920, down from $26,125 in the previous quarter. Net income of $16,853, slightly up from $16,772 in the previous quarter. Pre-tax pre-provision income of $19,901, compared to $19,420 in the previous quarter. * Diluted earnings per share of $0.52, up from $0.51 in the previous quarter.
The company's performance ratios for the same period include: Return on average assets at 1.71%. Return on average common equity at 13.18%. Yield on loans at 6.61%. Cost of deposits at 1.59%. Net interest margin at 4.65%. Efficiency ratio at 55.60%.
The company's capital and asset quality metrics as of March 31, 2025, include: Tangible equity to tangible assets at 10.34%. Allowance for loan losses to nonperforming loans at 201%. Nonperforming assets to total assets at 0.68%. Total loans, including loans held for sale, amounting to $3,073,399.
California BanCorp continues to monitor macroeconomic variables related to changes in interest rates, inflation, and concerns regarding an economic downturn, and its potential effects on its business, customers, employees, communities, and markets. The company also highlighted potential challenges that could impact its business, financial condition, or near* or longer-term results of operations, including slower loan growth, difficulty retaining and attracting deposit relationships, and potential negative effects of current and future governmental, monetary, and fiscal policies.
The company's financial report also includes non-GAAP financial measures to provide investors and others with additional information useful in assessing its financial condition and results of operations. Following these announcements, the company's shares moved 1.59%, and are now trading at a price of $14.73. For more information, read the company's full 10-Q submission here.
