California Bancorp Reports Strong Financial Performance in 2025

By Chris Stiles • Wednesday, January 28 11:50 • Permanent Link

California Bancorp has reported its financial results for the fourth quarter and full year of 2025. The company's net income for the fourth quarter of 2025 was $16.4 million, or $0.50 per diluted share, compared to $15.7 million, or $0.48 per diluted share for the third quarter of 2025, and $16.8 million, or $0.51 per diluted share for the fourth quarter of 2024. For the full year of 2025, the company reported net income of $63.1 million, or $1.93 per diluted share, a significant increase from the net income of $5.4 million, or $0.22 per diluted share for the full year of 2024.

The company's net interest margin for the fourth quarter of 2025 was 4.44%, compared with 4.52% in the prior quarter, and its return on average assets was 1.58%, compared with 1.54% in the prior quarter. Additionally, the company's total loans, including loans held for sale, increased to $3.06 billion at December 31, 2025, up $62.0 million from $3.00 billion at September 30, 2025.

In terms of nonperforming assets, the ratio to total assets was 0.40% at December 31, 2025, compared with 0.38% at September 30, 2025. The company's allowance for credit losses ("ACL") was 1.20% of total loans held for investment at December 31, 2025, compared to 1.46% at September 30, 2025.

Furthermore, the total deposits of the company were $3.37 billion at December 31, 2025, a decrease of $89.1 million or 2.6% compared with $3.46 billion at September 30, 2025. The cost of deposits was 1.43%, compared to 1.59% in the prior quarter, and the cost of funds was 1.50%, down from 1.69% in the prior quarter.

The company also repurchased 122,428 shares of common stock at an average price of $16.37 and a total cost of $2.0 million under the stock repurchase program. Additionally, a dividend of $0.10 per common share was declared, totaling $3.3 million.

For the full year 2025, the company reported a net interest margin of 4.55%, compared with 4.28% in the prior year, and a reversal of provision for credit losses of $8.8 million for 2025, compared with a provision for credit losses of $21.7 million in the prior year. The company's efficiency ratio (non-gaap) for 2025 was 56.1%, compared with 76.6% in the prior year.

The market has reacted to these announcements by moving the company's shares -1.43% to a price of $18.56. If you want to know more, read the company's complete 8-K report here.

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