California BanCorp \ CA
For the period ended Apr 28, 2026. Filed Apr 28, 2026.
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Apr 28, 2026 · Filed Apr 28, 2026
Contents
EX-99.1 · CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
In addition to historical information, this release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and other matters that are not historical facts. Examples of forward-looking statements include, among others, statements regarding expectations, plans or objectives for future operations, products or services, loan recoveries, projections, and expectations regarding the adequacy of reserves for credit losses, as well as forecasts relating to financial and operating results or other measures of economic performance. Forward-looking statements reflect management’s current view about future events and involve risks and uncertainties that may cause actual results to differ from those expressed in the forward-looking statement or historical results. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and often include the words or phrases such as “aim,” “can,” “may,” “could,” “predict,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “hope,” “intend,” “plan,” “potential,” “project,” “will likely result,” “continue,” “seek,” “shall,” “possible,” “projection,” “optimistic,” and “outlook,” and variations of these words and similar expressions.
Factors that could cause or contribute to results differing from those in or implied in the forward-looking statements include but are not limited to the impact of bank failures or other adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks; changes in real estate markets and valuations; the impact on financial markets from geopolitical conflicts; inflation, interest rate, market and monetary fluctuations and general economic conditions, either nationally or locally in the areas in which the Company conducts business; increases in competitive pressures among financial institutions and businesses offering similar products and services; general credit risks related to lending, including changes in the value of real estate or other collateral, the financial condition of borrowers, the effectiveness of our underwriting practices and the risk of fraud; higher than anticipated defaults in the Company’s loan portfolio; changes in management’s estimate of the adequacy of the allowance for credit losses or the factors the Company uses to determine the allowance for credit losses; changes in demand for loans and other products and services offered by the Company; the possibility that the Company may reduce or discontinue the payment of dividends on its common stock; the possibility that the Company may discontinue, reduce or otherwise limit the level of repurchases of its common stock that it may make from time to time pursuant to its stock repurchase program; the costs and outcomes of litigation; legislative or regulatory changes or changes in accounting principles, policies or guidelines; and other risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”) and other documents the Company may file with the SEC from time to time.
Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and other documents the Company files with the SEC from time to time.
Any forward-looking statement made in this release is based only on information currently available to management and speaks only as of the date on which it is made. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements or to conform such forward-looking statements to actual results or to changes in its opinions or expectations, except as required by law.
Financial Highlights (Unaudited)
| At or for the Three Months Ended | |||
|---|---|---|---|
| March 31, 2026 | December 31, 2025 | March 31, 2025 | |
| ($ in thousands except share and per share data) | |||
| EARNINGS | |||
| Net interest income | $42,084 | $42,905 | $42,255 |
| Reversal of credit losses | $(381) | $(4,398) | $(3,776) |
| Noninterest income | $2,137 | $2,995 | $2,566 |
| Noninterest expense | $25,512 | $27,908 | $24,920 |
| Income tax expense | $5,299 | $5,968 | $6,824 |
| Net income | $13,791 | $16,422 | $16,853 |
| Pre-tax pre-provision income (1) | $18,709 | $17,992 | $19,901 |
| Diluted earnings per share | $0.42 | $0.50 | $0.52 |
| Shares outstanding at period end | 32,152,298 | 32,418,182 | 32,402,140 |
| PERFORMANCE RATIOS | |||
| Return on average assets | 1.36% | 1.58% | 1.71% |
| Return on average common equity | 9.62% | 11.43% | 13.18% |
| Yield on total loans | 6.14% | 6.31% | 6.61% |
| Yield on interest earning assets | 5.72% | 5.82% | 6.26% |
| Cost of deposits | 1.29% | 1.43% | 1.59% |
| Cost of funds | 1.36% | 1.50% | 1.72% |
| Net interest margin | 4.47% | 4.44% | 4.65% |
| Efficiency ratio (1) | 57.69% | 60.80% | 55.60% |
| As of | ||
|---|---|---|
| March 31, 2026 | December 31, 2025 | |
| ($ in thousands except share and per share data) | ||
| CAPITAL | ||
| Tangible equity to tangible assets (1) | 11.46% | 11.45% |
| Book value (BV) per common share | $17.97 | $17.79 |
| Tangible BV per common share (1) | $13.97 | $13.79 |
| ASSET QUALITY | ||
| Allowance for loan losses (ALL) | $34,002 | $34,348 |
| Reserve for unfunded loan commitments | $2,105 | $2,105 |
| Allowance for credit losses (ACL) | $36,107 | $36,453 |
| Allowance for loan losses to nonperforming loans | 111.0% | 213.5% |
| ALL to total loans held for investment | 1.14% | 1.13% |
| ACL to total loans held for investment | 1.21% | 1.20% |
| 30-89 days past due, excluding nonaccrual loans | $12,793 | $14,725 |
| Over 90 days past due, excluding nonaccrual loans | $— | $— |
| Special mention loans | $53,680 | $72,407 |
| Special mention loans to total loans held for investment | 1.81% | 2.39% |
| Substandard loans | $72,392 | $60,681 |
| Substandard loans to total loans held for investment | 2.44% | 2.00% |
| Nonperforming loans | $30,625 | $16,086 |
| Nonperforming loans to total loans held for investment | 1.03% | 0.53% |
| Other real estate owned, net | $8,613 | $— |
| Nonperforming assets | $39,238 | $16,086 |
| Nonperforming assets to total assets | 0.97% | 0.40% |
| END OF PERIOD BALANCES | ||
| Total loans, including loans held for sale | $2,996,929 | $3,058,992 |
| Total assets | $4,048,734 | $4,033,386 |
| Deposits | $3,393,485 | $3,370,581 |
| Loans to deposits | 88.3% | 90.8% |
| Shareholders’ equity | $577,835 | $576,586 |
| (1) | Non-GAAP measure. See – GAAP to Non-GAAP reconciliation. |
| At or for the Three Months Ended | |||
|---|---|---|---|
| ALLOWANCE for CREDIT LOSSES | March 31, 2026 | December 31, 2025 | March 31, 2025 |
| ($ in thousands) | |||
| Allowance for loan losses | |||
| Balance at beginning of period | $34,348 | $41,292 | $50,540 |
| Reversal of credit losses | (381) | (4,225) | (3,158) |
| Charge-offs | — | (2,761) | (3,159) |
| Recoveries | 35 | 42 | 1,616 |
| Net recoveries (charge-offs) | 35 | (2,719) | (1,543) |
| Balance, end of period | $34,002 | $34,348 | $45,839 |
| Reserve for unfunded loan commitments (1) | |||
| Balance, beginning of period | $2,105 | $2,278 | $3,103 |
| Reversal of provision for credit losses | — | (173) | (618) |
| Balance, end of period | 2,105 | 2,105 | 2,485 |
| Allowance for credit losses | $36,107 | $36,453 | $48,324 |
| ALL to total loans held for investment | 1.14% | 1.13% | 1.49% |
| ACL to total loans held for investment | 1.21% | 1.20% | 1.57% |
| Net recoveries (charge-offs) to average total loans | 0.00% | (0.36)% | (0.20)% |
(1) Included in “Accrued interest and other liabilities” on the consolidated balance sheets.
Balance Sheets*(Unaudited)*
| March 31, 2026 | December 31, 2025 | |
|---|---|---|
| ($ in thousands) | ||
| ASSETS | ||
| Cash and due from banks | $56,390 | $52,013 |
| Federal funds sold & other interest-bearing balances | 354,750 | 347,900 |
| Total cash and cash equivalents | 411,140 | 399,913 |
| Debt securities available-for-sale, at fair value (amortized cost of $303,968 and $237,191 at March 31, 2026 and December 31, 2025) | 298,617 | 234,890 |
| Debt securities held-to-maturity, at cost (fair value of $48,467 and $49,308 at March 31, 2026 and December 31, 2025) | 52,849 | 52,936 |
| Loans held for sale | 24,096 | 25,105 |
| Loans held for investment: | ||
| Construction & land development | 140,345 | 138,894 |
| 1-4 family residential | 129,121 | 142,399 |
| Multifamily | 273,007 | 324,075 |
| Other commercial real estate | 1,848,663 | 1,820,445 |
| Commercial & industrial | 579,660 | 605,859 |
| Other consumer | 2,037 | 2,215 |
| Total loans held for investment | 2,972,833 | 3,033,887 |
| Allowance for credit losses - loans | (34,002) | (34,348) |
| Total loans held for investment, net | 2,938,831 | 2,999,539 |
| Restricted stock at cost | 30,940 | 30,932 |
| Premises and equipment | 11,978 | 12,116 |
| Right of use asset | 15,463 | 15,094 |
| Other real estate owned, net | 8,613 | — |
| Goodwill | 110,934 | 110,934 |
| Intangible assets | 17,680 | 18,480 |
| Bank owned life insurance | 67,407 | 67,367 |
| Deferred taxes, net | 26,184 | 29,041 |
| Accrued interest and other assets | 34,002 | 37,039 |
| Total assets | $4,048,734 | $4,033,386 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
| Deposits: | ||
| Noninterest-bearing demand | $1,247,363 | $1,178,256 |
| Interest-bearing NOW accounts | 833,601 | 840,593 |
| Money market and savings accounts | 1,206,598 | 1,223,486 |
| Time deposits | 105,923 | 128,246 |
| Total deposits | 3,393,485 | 3,370,581 |
| Borrowings | 34,221 | 33,832 |
| Operating lease liability | 19,184 | 18,936 |
| Accrued interest and other liabilities | 24,009 | 33,451 |
| Total liabilities | 3,470,899 | 3,456,800 |
| Shareholders’ Equity: | ||
| Common stock - 50,000,000 shares authorized, no par value; issued and outstanding 32,152,298 and 32,418,182 at March 31, 2026 and December 31, 2025 | 435,249 | 442,394 |
| Retained earnings | 146,355 | 135,813 |
| Accumulated other comprehensive loss - net of taxes | (3,769) | (1,621) |
| Total shareholders’ equity | 577,835 | 576,586 |
| Total liabilities and shareholders’ equity | $4,048,734 | $4,033,386 |
Income Statements - Quarterly and Year-to-Date*(Unaudited)*
| Three Months Ended | |||
|---|---|---|---|
| March 31, 2026 | December 31, 2025 | March 31, 2025 | |
| ($ in thousands except share and per share data) | |||
| INTEREST AND DIVIDEND INCOME | |||
| Interest and fees on loans | $45,628 | $47,426 | $50,686 |
| Interest on debt securities | 2,778 | 2,403 | 1,524 |
| Interest on tax-exempted debt securities | 298 | 298 | 305 |
| Interest and dividends from other institutions | 5,081 | 6,054 | 4,310 |
| Total interest and dividend income | 53,785 | 56,181 | 56,825 |
| INTEREST EXPENSE | |||
| Interest on NOW, savings, and money market accounts | 10,059 | 11,376 | 11,116 |
| Interest on time deposits | 943 | 1,204 | 2,063 |
| Interest on borrowings | 699 | 696 | 1,391 |
| Total interest expense | 11,701 | 13,276 | 14,570 |
| Net interest income | 42,084 | 42,905 | 42,255 |
| Reversal of credit losses (1) | (381) | (4,398) | (3,776) |
| Net interest income after reversal of credit losses | 42,465 | 47,303 | 46,031 |
| NONINTEREST INCOME | |||
| Service charges and fees on deposit accounts | 1,100 | 1,107 | 1,186 |
| Gain on sale of loans | — | — | 577 |
| Bank owned life insurance income | 518 | 487 | 463 |
| Servicing and related income on loans | 78 | 140 | 142 |
| Other charges and fees | 441 | 1,261 | 198 |
| Total noninterest income | 2,137 | 2,995 | 2,566 |
| NONINTEREST EXPENSE | |||
| Salaries and employee benefits | 16,550 | 16,414 | 15,864 |
| Occupancy and equipment expenses | 1,989 | 2,295 | 2,152 |
| Data processing | 1,965 | 1,929 | 1,935 |
| Legal, audit and professional | 709 | 972 | 859 |
| Regulatory assessments | 527 | 507 | 722 |
| Director and shareholder expenses | 337 | 311 | 404 |
| Intangible assets amortization | 800 | 947 | 948 |
| Litigation settlements, net | 75 | 2,035 | — |
| Other real estate owned income, net | 104 | 4 | 68 |
| Other expense | 2,456 | 2,494 | 1,968 |
| Total noninterest expense | 25,512 | 27,908 | 24,920 |
| Income before income taxes | 19,090 | 22,390 | 23,677 |
| Income tax expense | 5,299 | 5,968 | 6,824 |
| Net income | $13,791 | $16,422 | $16,853 |
| Net income per share - basic | $0.43 | $0.51 | $0.52 |
| Net income per share - diluted | $0.42 | $0.50 | $0.52 |
| Weighted average common shares-diluted | 32,675,943 | 32,787,551 | 32,698,227 |
(1) Included provision for (reversal of) credit losses on unfunded loan commitments of zero, $(173) thousand and $(618) thousand for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.