California BanCorp Reports Financial Results for the First Quarter Ended March 31, 2021
- 61
OAKLAND, Calif., April 30, 2021 (GLOBE NEWSWIRE) -- California BanCorp (NASDAQ: CALB), whose subsidiary is California Bank of Commerce, announced today its financial results for the first quarter ended March 31, 2021.
The Company reported net income of $2.8 million for the first quarter of 2021, representing an increase of $1.0 million, or 57%, compared to $1.8 million for the fourth quarter of 2020 and an increase of $2.3 million, or 494%, compared to $473,000 in the first quarter of 2020.
Diluted per share earnings of $0.34 for the first quarter of 2021 compared to $0.22 for the fourth quarter of 2020 and $0.06 for the first quarter of 2020.
“We delivered a record quarter of earnings in the first quarter driven by our continued strong core loan and deposit growth, which we were able to generate while also helping clients access the Paycheck Protection Program (“PPP”) and originating a significant volume of loans in the second round of the program,” said Steven Shelton, President and CEO of California BanCorp. “The commercial banking platform we have built with highly experienced bankers offering sophisticated financial products and services through a relationship-based approach is enabling us to continue to take market share, win full banking relationships with high quality operating companies, and originate loans with attractive risk-adjusted yields that support our net interest margin. Our success in loan production and deposit gathering is resulting in strong balance sheet growth, improving operating leverage, and a higher level of profitability. During the first quarter, we saw balanced loan production across our commercial banking platform, as the investments we have made to expand our presence in key markets and develop expertise in niche lending areas continue to produce good results. Our new business pipeline remains healthy, which we believe positions us well to continue driving the growth in our balance sheet that will lead to further improvement in our profitability in the future.”
Financial Highlights:
Profitability - three months ended March 31, 2021 compared to December 31, 2020
- Net income of $2.8 million and $0.34 per diluted share, compared to $1.8 million and $0.22 per share, respectively.
- Revenue of $14.3 million increased $578,000, or 4%, compared to $13.7 million for the fourth quarter of 2020.
- Provision for loan losses decreased $400,000 due to improved credit quality and continued adjustments in the qualitative reserve assessment in response to general macroeconomic changes related to COVID-19 as it pertains to our overall loan portfolio.
- Non-interest expense, excluding capitalized loan origination costs, of $11.6 million remained consistent with the fourth quarter of 2020 level of $11.6 million.
Financial Position – March 31, 2021 compared to December 31, 2020
- Total assets increased by $41.8 million, or 2%, to $1.95 billion primarily as the result of loan growth during the quarter, which was funded by the growth in our deposit portfolio.
- Total gross loans increased by $101.2 million, or 7%, to $1.47 billion. Excluding the impact of new PPP loans funded and certain PPP loans forgiven by the SBA, total gross loans increased during the first quarter by $54.2 million, or 5%, to $1.12 billion.
- Total deposits increased by $97.5 million, or 6%, to $1.63 billion.
- Total borrowings decreased by $54.2 million, or 29%, to $134.8 million due to repayment of borrowings under the Federal Reserve Paycheck Protection Program Liquidity Facility (“PPPLF”).
- Capital ratios, including the impact of PPP loan activity, remain healthy with a tier-one leverage ratio of 7.46%, tier I capital ratio of 9.47% and total risk-based capital ratio of 12.34%.
Business Impact of COVID-19:
In response to the continued evolving COVID-19 pandemic, the Company has focused first on the well-being of its people, customers and communities. Preventative health measures were put in place including elimination of business related travel requirements, mandatory work from home for all employees able to do so, social distancing precautions for all employees in the office and customers visiting branches, and preventative cleaning at offices and branches.
The Company has also focused on business continuity measures including monitoring potential business interruptions, making improvements to our remote working technology, and conducting regular discussions with our technology vendors to ensure full functionality throughout this event.
The Company has taken measures to support customers affected by the pandemic and to maintain strong asset quality, including:
- Implementing a broad-based risk management strategy to manage credit segments on a real-time basis;
- Monitoring portfolio risk and related mitigation strategies by segments;
- Helping business clients receive PPP and other loan products under the CARES Act:
- Following the launch of PPP in April 2020, we processed 100% of the approximately 730 applications received and all of the applications we submitted to the SBA received approval, resulting in $362.0 million in loan fundings. At March 31, 2021, approximately $130.2 million of these balances have been granted forgiveness by the SBA.
- Following the re-launch of the PPP program in January 2021, we processed 100% of the approximately 370 applications received and all of the applications we submitted to the SBA received approval, resulting in $117.3 million in additional loan fundings.
- Offering flexible repayment options to current clients and a streamlined loan modification process, when appropriate. Beginning in March 2020, we launched a proactive deferral program that resulted in modification of 383 loans with an aggregate balance of approximately $323.9 million. At March 31, 2021, four loans totaling $9.5 million were on a deferred status or have had a structure modification under the CARES Act guidelines.
Net Interest Income and Margin:
Net interest income for the quarter ended March 31, 2021 was $13.3 million, an increase of $573,000 or 4%, over $12.8 million for the three months ended December 31, 2020, and an increase of $3.2 million, or 31%, over $10.2 million for the quarter ended March 31, 2020. The increase in net interest income compared to the fourth quarter of 2020 was primarily attributable to the growth of the loan portfolio combined with a reduction in the average cost of deposits. Compared to the first quarter of 2020, the increase in net interest income resulted from growth in earning assets and amortization of fees received on PPP loans offset, in part, by the decline in short-term interest rates and higher liquidity.
The Company’s net interest margin for the quarter was 2.94%, compared to 2.66% for the fourth quarter of 2020 and 3.80% for the same period in 2020. The increase in margin compared to the prior quarter was primarily due to the growth of the loan portfolio combined with a reduction in the average cost of deposits. The decrease in margin from the same period last year was primarily the result of a decrease in short-term interest rates, partially offset by fees recognized on PPP loans.
Non-Interest Income:
The Company’s non-interest income for the quarters ended March 31, 2021, December 31, 2020, and March 31, 2020 was $921,000, $916,000 and $1.3 million, respectively. The decrease in noninterest income from the first quarter of 2020 was primarily due to a decrease in service charges and loan related fees.
Net interest income and non-interest income comprised total revenue of $14.3 million, $13.7 million, and $11.5 million for the quarters ended March 31, 2021, December 31, 2020, and March 31, 2020, respectively.
Non-Interest Expense:
The Company’s non-interest expense for the quarters ended March 31, 2021, December 31, 2020, and March 31, 2020 was $10.1 million, $10.4 million, and $10.4 million, respectively. The decrease in non-interest expense was primarily due to capitalized loan origination costs related to growth in the loan portfolio.
The Company’s efficiency ratio, the ratio of non-interest expense to revenues, was 70.70%, 76.15%, and 90.72% for the quarters ending March 31, 2021, December 31, 2020, and March 31, 2020, respectively.
Balance Sheet:
Total assets of $1.95 billion as of March 31, 2021, represented an increase of $41.8 million, or 2%, compared to $1.91 billion at December 31, 2020 and an increase of $740.1 million, or 61% compared to $1.21 billion at March 31, 2020.
Total loans increased by $101.2 million, or 7% to $1.47 billion at March 31, 2021, from $1.37 billion at December 31, 2021 and $501.4 million, or 52% compared to $968.9 million at March 31, 2020. Loan growth in the first quarter of 2021 compared to the fourth quarter of 2020 was centered in commercial loans and in commercial real estate loans of $24.5 million and $22.8 million, respectively, and an increase in SBA loans of $46.7 million due to additional net fundings of PPP loans.
Year-over-year loan growth was primarily due to the origination of $492.2 million in PPP loans as well as increases in commercial loans and commercial real estate of $22.7 million and $76.8 million, respectively. In addition, the Company purchased two portfolios of residential solar loans totaling $47.4 million. These increases were partially offset by approximately $130.2 million of PPP loans that were forgiven by the SBA.
Total deposits increased by $97.5 million, or 6% to $1.63 billion at March 31, 2021, from $1.53 billion at December 31, 2020 and $600.9 million, or 58% over $1.03 billion at March 31, 2020. The increase in total deposits from the end of the fourth quarter of 2020 was primarily due to growth of non-interest bearing demand deposits of $69.5 million and money market and savings deposits of $46.9 million.
Compared to the same period last year, deposit growth was primarily concentrated in noninterest-bearing demand and money market deposits as the result of funding PPP loans and organic growth. Non-interest bearing deposits, primarily commercial business operating accounts, represented 45.6% of total deposits at March 31, 2021, compared to 43.9% at December 31, 2020 and 39.2% at March 31, 2020.
Asset Quality:
The provision for credit losses decreased to $300,000 for the first quarter of 2021, compared to $700,000 for the fourth quarter of 2020 and $400,000 for the first quarter of 2020. Net loan recoveries in the first quarter of 2021 were $166,000 or 0.01% of gross loans, compared to net recoveries of $26,000, or 0.00%, in the fourth quarter of 2020 and net recoveries of $90,000, or 0.01%, in the first quarter of 2020.
Non-performing assets (“NPAs”) to total assets of 0.01% at March 31, 2021 and December 31, 2020, compared to 0.22% at March 31, 2020, with non-performing loans of $234,000, $234,000 and $2.7 million, respectively, on those dates.
The allowance for loan losses increased by $466,000, or 3% to $14.6 million, or 0.99% of total loans at March 31, 2021, compared to $14.1 million, or 1.03% at December 31, 2020 and $11.6 million, or 1.19% of total loans at March 31, 2020. The decrease in the allowance as a percentage of total loans at March 31, 2021 compared to December 31, 2020 and March 31, 2020 reflects the impact of PPP loans, which are guaranteed by the SBA.
Capital Adequacy:
At March 31, 2021, shareholders’ equity totaled $139.2 million compared to $136.4 million at December 31, 2020 and $131.2 million one year ago. As a result, the Company’s total risk-based capital ratio, tier one capital ratio and leverage ratio of 12.34%, 9.47%, and 7.46%, respectively, were all substantially above the regulatory standards for “well-capitalized” institutions of 10.00%, 8.00% and 5.00% respectively.
“We have seen meaningful progress on our goal of improving the operating leverage from last year’s balance sheet growth. Compared to the first quarter of last year our efforts increased quarterly revenue by $2.8 million while keeping noninterest expenses flat through an extremely challenging operating environment,” said Thomas A. Sa, Senior Executive Vice President, Chief Financial Officer and Chief Operating Officer of California BanCorp. “We also continue to see healthy asset quality and a low level of credit losses, as our borrowers continue to perform well despite the impact of the ongoing pandemic.”
About California BanCorp:
California BanCorp, the parent company for California Bank of Commerce, offers a broad range of commercial banking services to closely held businesses and professionals located throughout Northern California. The Company’s common stock trades on the Nasdaq Global Select marketplace under the symbol CALB. For more information on California BanCorp, call us at (510) 457-3615, or visit us at www.californiabankofcommerce.com.
Contacts:
Steven E. Shelton, (510) 457-3751
President and Chief Executive Officer
[email protected]
Thomas A. Sa, (510) 457-3775
Senior Executive Vice President
Chief Financial Officer and Chief Operating Officer
[email protected]
Use of Non-GAAP Financial Information:
This press release contains both financial measures based on GAAP and non-GAAP. Non-GAAP financial measures are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Forward-Looking Information:
Statements in this news release regarding expectations and beliefs about future financial performance and financial condition, as well as trends in the Company’s business and markets are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "outlook," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." The forward-looking statements in this news release are based on current information and on assumptions that the Company makes about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond the Company’s control. As a result of those risks and uncertainties, the Company’s actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause the Company to make changes to future plans. Those risks and uncertainties include, but are not limited to, the risk of incurring loan losses, which is an inherent risk of the banking business; the risk that the Company will not be able to continue its internal growth rate; the risk that the United States economy will experience slowed growth or recession or will be adversely affected by domestic or international economic conditions and risks associated with the Federal Reserve Board taking actions with respect to interest rates, any of which could adversely affect, among other things, the values of real estate collateral supporting many of the Company’s loans, interest income and interest rate margins and, therefore, the Company’s future operating results; risks associated with changes in income tax laws and regulations; and risks associated with seeking new client relationships and maintaining existing client relationships. Readers of this news release are encouraged to review the additional information regarding these and other risks and uncertainties to which our business is subject that are contained in our Annual Report on Form 10-K for the year ended December 31, 2020 which is on file with the Securities and Exchange Commission (the “SEC”). Additional information will be set forth in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, which we expect to file with the SEC during the second quarter of 2021, and readers of this release are urged to review the additional information that will be contained in that report.
The COVID-19 pandemic has created economic and financial disruptions that have adversely affected, and may continue to adversely affect, our business, operations, financial performance and prospects. Even after the COVID-19 pandemic subsides, it is possible that the U.S. and other major economies experience or continue to experience a prolonged recession, which could materially and adversely affect our business, operations, financial performance and prospects. Statements about the effects of the COVID-19 pandemic on our business, operations, financial performance and prospects may constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties and us.
Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today's date, or to make predictions based solely on historical financial performance. The Company disclaims any obligation to update forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise, except as may be required by.
| CALIFORNIA BANCORP AND SUBSIDIARY | |||||||||||||||||||||||||||
| SELECTED FINANCIAL INFORMATION (UNAUDITED) - PROFITABILITY | |||||||||||||||||||||||||||
| (Dollars in Thousands, Except Per Share Data) | |||||||||||||||||||||||||||
| Change | Change | ||||||||||||||||||||||||||
| QUARTERLY HIGHLIGHTS: | Q1 2021 | Q4 2020 | $ | % | Q1 2020 | $ | % | ||||||||||||||||||||
| Interest income | $ | 15,032 | $ | 14,748 | $ | 284 | 2 | % | $ | 12,303 | $ | 2,729 | 22 | % | |||||||||||||
| Interest expense | 1,696 | 1,985 | (289 | ) | -15 | % | 2,121 | (425 | ) | -20 | % | ||||||||||||||||
| Net interest income | 13,336 | 12,763 | 573 | 4 | % | 10,182 | 3,154 | 31 | % | ||||||||||||||||||
| Provision for loan losses | 300 | 700 | (400 | ) | -57 | % | 400 | (100 | ) | -25 | % | ||||||||||||||||
| Net interest income after provision | |||||||||||||||||||||||||||
| provision for loan losses | 13,036 | 12,063 | 973 | 8 | % | 9,782 | 3,254 | 33 | % | ||||||||||||||||||
| Non-interest income | 921 | 916 | 5 | 1 | % | 1,290 | (369 | ) | -29 | % | |||||||||||||||||
| Non-interest expense | 10,080 | 10,416 | (336 | ) | -3 | % | 10,407 | (327 | ) | -3 | % | ||||||||||||||||
| Income before income taxes | 3,877 | 2,563 | 1,314 | 51 | % | 665 | 3,212 | 483 | % | ||||||||||||||||||
| Income tax expense | 1,068 | 778 | 290 | 37 | % | 192 | 876 | 456 | % | ||||||||||||||||||
| Net income | $ | 2,809 | $ | 1,785 | $ | 1,024 | 57 | % | $ | 473 | $ | 2,336 | 494 | % | |||||||||||||
| Diluted earnings per share | $ | 0.34 | $ | 0.22 | $ | 0.12 | 55 | % | $ | 0.06 | $ | 0.28 | 467 | % | |||||||||||||
| Net interest margin | 2.94 | % | 2.66 | % | +28 Basis Points | 3.80 | % | -86 Basis Points | |||||||||||||||||||
| Efficiency ratio | 70.70 | % | 76.15 | % | -545 Basis Points | 90.72 | % | -2,002 Basis Points | |||||||||||||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | ||||||||||||||||||||||||||
| SELECTED FINANCIAL INFORMATION (UNAUDITED) - FINANCIAL POSITION | ||||||||||||||||||||||||||
| (Dollars in Thousands, Except Per Share Data) | ||||||||||||||||||||||||||
| Change | Change | |||||||||||||||||||||||||
| PERIOD-END HIGHLIGHTS: | Q1 2021 | Q4 2020 | $ | % | Q1 2020 | $ | % | |||||||||||||||||||
| Total assets | $ | 1,947,588 | $ | 1,905,779 | $ | 41,809 | 2 | % | $ | 1,207,482 | $ | 740,106 | 61 | % | ||||||||||||
| Gross loans | 1,470,313 | 1,369,070 | 101,243 | 7 | % | 968,945 | 501,368 | 52 | % | |||||||||||||||||
| Deposits | 1,629,715 | 1,532,206 | 97,509 | 6 | % | 1,028,861 | 600,854 | 58 | % | |||||||||||||||||
| Tangible equity | 131,634 | 128,856 | 2,778 | 2 | % | 123,608 | 8,026 | 6 | % | |||||||||||||||||
| Tangible book value per share | $ | 16.07 | $ | 15.77 | $ | 0.30 | 2 | % | $ | 15.22 | $ | 0.85 | 6 | % | ||||||||||||
| Tangible equity / total assets | 6.76 | % | 6.76 | % | N/A | 10.24 | % | -348 Basis Points | ||||||||||||||||||
| Gross loans / total deposits | 90.22 | % | 89.35 | % | +87 Basis Points | 94.18 | % | -396 Basis Points | ||||||||||||||||||
| Noninterest-bearing deposits / | ||||||||||||||||||||||||||
| total deposits | 45.56 | % | 43.93 | % | +163 Basis Points | 39.19 | % | +637 Basis Points | ||||||||||||||||||
| QUATERLY AVERAGE | Change | Change | ||||||||||||||||||||||||
| HIGHLIGHTS: | Q1 2021 | Q4 2020 | $ | % | Q1 2020 | $ | % | |||||||||||||||||||
| Total assets | $ | 1,922,739 | $ | 1,993,661 | $ | (70,922 | ) | -4 | % | $ | 1,167,803 | $ | 754,936 | 65 | % | |||||||||||
| Total earning assets | 1,839,437 | 1,910,656 | (71,219 | ) | -4 | % | 1,077,431 | 762,006 | 71 | % | ||||||||||||||||
| Gross loans | 1,415,506 | 1,375,664 | 39,842 | 3 | % | 952,303 | 463,203 | 49 | % | |||||||||||||||||
| Deposits | 1,569,170 | 1,516,441 | 52,729 | 3 | % | 999,984 | 569,186 | 57 | % | |||||||||||||||||
| Tangible equity | 129,865 | 127,981 | 1,884 | 1 | % | 123,752 | 6,113 | 5 | % | |||||||||||||||||
| Tangible equity / total assets | 6.75 | % | 6.42 | % | +33 Basis Points | 10.60 | % | -385 Basis Points | ||||||||||||||||||
| Gross loans / total deposits | 90.21 | % | 90.72 | % | -51 Basis Points | 95.23 | % | -502 Basis Points | ||||||||||||||||||
| Noninterest-bearing deposits / | ||||||||||||||||||||||||||
| total deposits | 43.97 | % | 44.68 | % | -71 Basis Points | 37.50 | % | +647 Basis Points | ||||||||||||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | ||||||||||||||||||||||
| SELECTED INTERIM FINANCIAL INFORMATION (UNAUDITED) - ASSET QUALITY | ||||||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES: | 03/31/21 | 12/31/20 | 09/30/20 | 06/30/20 | 03/31/20 | |||||||||||||||||
| Balance, beginning of period | $ | 14,111 | $ | 13,385 | $ | 12,524 | $ | 11,565 | $ | 11,075 | ||||||||||||
| Provision for loan losses, quarterly | 300 | 700 | 850 | 2,930 | 400 | |||||||||||||||||
| Charge-offs, quarterly | - | - | - | (1,976 | ) | - | ||||||||||||||||
| Recoveries, quarterly | 166 | 26 | 11 | 5 | 90 | |||||||||||||||||
| Balance, end of period | $ | 14,577 | $ | 14,111 | $ | 13,385 | $ | 12,524 | $ | 11,565 | ||||||||||||
| NONPERFORMING ASSETS: | 03/31/21 | 12/31/20 | 09/30/20 | 06/30/20 | 03/31/20 | |||||||||||||||||
| Loans accounted for on a non-accrual basis | $ | 234 | $ | 234 | $ | 580 | $ | 1,243 | $ | 2,650 | ||||||||||||
| Loans with principal or interest contractually | ||||||||||||||||||||||
| past due 90 days or more and still accruing | ||||||||||||||||||||||
| interest | - | - | - | - | - | |||||||||||||||||
| Nonperforming loans | $ | 234 | $ | 234 | $ | 580 | $ | 1,243 | $ | 2,650 | ||||||||||||
| Other real estate owned | - | - | - | - | - | |||||||||||||||||
| Nonperforming assets | $ | 234 | $ | 234 | $ | 580 | $ | 1,243 | $ | 2,650 | ||||||||||||
| Loans restructured and in compliance with | ||||||||||||||||||||||
| modified terms | - | - | - | - | 624 | |||||||||||||||||
| Nonperforming assets and restructured loans | $ | 234 | $ | 234 | $ | 580 | $ | 1,243 | $ | 3,274 | ||||||||||||
| Nonperforming loans by asset type: | ||||||||||||||||||||||
| Commercial | - | - | 346 | 1,008 | 2,306 | |||||||||||||||||
| Real estate other | - | - | - | - | - | |||||||||||||||||
| Real estate construction and land | - | - | - | - | - | |||||||||||||||||
| SBA | 234 | 234 | 234 | 235 | 344 | |||||||||||||||||
| Other | - | - | - | - | - | |||||||||||||||||
| Nonperforming loans | $ | 234 | $ | 234 | $ | 580 | $ | 1,243 | $ | 2,650 | ||||||||||||
| ASSET QUALITY: | 03/31/21 | 12/31/20 | 09/30/20 | 06/30/20 | 03/31/20 | |||||||||||||||||
| Allowance for loan losses / gross loans | 0.99 | % | 1.03 | % | 0.99 | % | 0.96 | % | 1.19 | % | ||||||||||||
| Allowance for loan losses / nonperforming loans | 6229.49 | % | 6030.34 | % | 2307.76 | % | 1007.56 | % | 436.42 | % | ||||||||||||
| Nonperforming assets / total assets | 0.01 | % | 0.01 | % | 0.03 | % | 0.07 | % | 0.22 | % | ||||||||||||
| Nonperforming loans / gross loans | 0.02 | % | 0.02 | % | 0.04 | % | 0.10 | % | 0.27 | % | ||||||||||||
| Net quarterly charge-offs / gross loans | -0.01 | % | -0.00 | % | -0.00 | % | 0.15 | % | -0.01 | % | ||||||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | |||||||||||||||
| INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||
| (Dollars in Thousands, Except Per Share Data) | |||||||||||||||
| Three months ended | |||||||||||||||
| 03/31/21 | 12/31/20 | 03/31/20 | |||||||||||||
| INTEREST INCOME | |||||||||||||||
| Loans | $ | 14,584 | $ | 14,305 | $ | 11,783 | |||||||||
| Federal funds sold | 88 | 131 | 329 | ||||||||||||
| Investment securities | 360 | 312 | 191 | ||||||||||||
| Total interest income | 15,032 | 14,748 | 12,303 | ||||||||||||
| INTEREST EXPENSE | |||||||||||||||
| Deposits | 1,191 | 1,359 | 1,994 | ||||||||||||
| Other | 505 | 626 | 127 | ||||||||||||
| Total interest expense | 1,696 | 1,985 | 2,121 | ||||||||||||
| Net interest income | 13,336 | 12,763 | 10,182 | ||||||||||||
| Provision for loan losses | 300 | 700 | 400 | ||||||||||||
| Net interest income after provision | |||||||||||||||
| for loan losses | 13,036 | 12,063 | 9,782 | ||||||||||||
| NON-INTEREST INCOME | |||||||||||||||
| Service charges and other fees | 641 | 662 | 970 | ||||||||||||
| Other non-interest income | 280 | 254 | 320 | ||||||||||||
| Total non-interest income | 921 | 916 | 1,290 | ||||||||||||
| NON-INTEREST EXPENSE | |||||||||||||||
| Salaries and benefits | 6,367 | 7,072 | 6,477 | ||||||||||||
| Premises and equipment | 1,197 | 1,125 | 1,139 | ||||||||||||
| Other | 2,516 | 2,219 | 2,791 | ||||||||||||
| Total non-interest expense | 10,080 | 10,416 | 10,407 | ||||||||||||
| Income before income taxes | 3,877 | 2,563 | 665 | ||||||||||||
| Income taxes | 1,068 | 778 | 192 | ||||||||||||
| NET INCOME | $ | 2,809 | $ | 1,785 | $ | 473 | |||||||||
| EARNINGS PER SHARE | |||||||||||||||
| Basic earnings per share | $ | 0.34 | $ | 0.22 | $ | 0.06 | |||||||||
| Diluted earnings per share | $ | 0.34 | $ | 0.22 | $ | 0.06 | |||||||||
| Average common shares outstanding | 8,179,667 | 8,152,052 | 8,103,248 | ||||||||||||
| Average common and equivalent | |||||||||||||||
| shares outstanding | 8,242,467 | 8,203,931 | 8,169,898 | ||||||||||||
| PERFORMANCE MEASURES | |||||||||||||||
| Return on average assets | 0.59 | % | 0.36 | % | 0.16 | % | |||||||||
| Return on average equity | 8.29 | % | 5.25 | % | 1.45 | % | |||||||||
| Return on average tangible equity | 8.77 | % | 5.55 | % | 1.54 | % | |||||||||
| Efficiency ratio | 70.70 | % | 76.15 | % | 90.72 | % | |||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | |||||||||||||||||||||
| INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||||||
| 03/31/21 | 12/31/20 | 09/30/20 | 06/30/20 | 03/31/20 | |||||||||||||||||
| ASSETS | |||||||||||||||||||||
| Cash and due from banks | $ | 18,475 | $ | 22,485 | $ | 23,339 | $ | 22,246 | $ | 22,792 | |||||||||||
| Federal funds sold | 342,305 | 396,032 | 480,555 | 485,823 | 117,818 | ||||||||||||||||
| Investment securities | 58,105 | 55,093 | 50,906 | 39,723 | 34,344 | ||||||||||||||||
| Loans: | |||||||||||||||||||||
| Commercial | 439,044 | 414,548 | 379,400 | 365,881 | 416,308 | ||||||||||||||||
| Real estate other | 573,520 | 550,690 | 539,541 | 508,916 | 496,765 | ||||||||||||||||
| Real estate construction and land | 45,550 | 37,193 | 36,596 | 49,524 | 41,697 | ||||||||||||||||
| SBA | 364,273 | 317,564 | 373,921 | 373,429 | 12,797 | ||||||||||||||||
| Other | 47,926 | 49,075 | 25,706 | 1,731 | 1,378 | ||||||||||||||||
| Loans, gross | 1,470,313 | 1,369,070 | 1,355,164 | 1,299,481 | 968,945 | ||||||||||||||||
| Unearned fee income | (1,569 | ) | 523 | (1,054 | ) | (1,569 | ) | 2,902 | |||||||||||||
| Allowance for loan losses | (14,577 | ) | (14,111 | ) | (13,385 | ) | (12,524 | ) | (11,565 | ) | |||||||||||
| Loans, net | 1,454,167 | 1,355,482 | 1,340,725 | 1,285,388 | 960,282 | ||||||||||||||||
| Premises and equipment, net | 5,452 | 5,778 | 5,933 | 4,709 | 3,427 | ||||||||||||||||
| Bank owned life insurance | 23,920 | 23,718 | 23,577 | 23,434 | 23,284 | ||||||||||||||||
| Goodwill and core deposit intangible | 7,544 | 7,554 | 7,564 | 7,575 | 7,585 | ||||||||||||||||
| Accrued interest receivable and other assets | 37,620 | 39,637 | 40,152 | 41,528 | 37,950 | ||||||||||||||||
| Total assets | $ | 1,947,588 | $ | 1,905,779 | $ | 1,972,751 | $ | 1,910,426 | $ | 1,207,482 | |||||||||||
| LIABILITIES | |||||||||||||||||||||
| Deposits: | |||||||||||||||||||||
| Demand noninterest-bearing | $ | 742,574 | $ | 673,100 | $ | 633,726 | $ | 643,354 | $ | 403,248 | |||||||||||
| Demand interest-bearing | 33,022 | 34,869 | 32,680 | 28,769 | 21,083 | ||||||||||||||||
| Money market and savings | 670,517 | 623,603 | 582,953 | 549,084 | 459,712 | ||||||||||||||||
| Time | 183,602 | 200,634 | 187,873 | 164,495 | 144,818 | ||||||||||||||||
| Total deposits | 1,629,715 | 1,532,206 | 1,437,232 | 1,385,702 | 1,028,861 | ||||||||||||||||
| Junior subordinated debt securities | 24,999 | 24,994 | 24,990 | 4,986 | 4,981 | ||||||||||||||||
| Other borrowings | 134,819 | 189,043 | 352,703 | 364,703 | 22,000 | ||||||||||||||||
| Accrued interest payable and other liabilities | 18,877 | 23,126 | 23,231 | 21,370 | 20,447 | ||||||||||||||||
| Total liabilities | 1,808,410 | 1,769,369 | 1,838,156 | 1,776,761 | 1,076,289 | ||||||||||||||||
| SHAREHOLDERS' EQUITY | |||||||||||||||||||||
| Common stock | 108,431 | 107,948 | 107,776 | 107,241 | 106,790 | ||||||||||||||||
| Retained earnings | 30,629 | 27,821 | 26,036 | 25,541 | 23,991 | ||||||||||||||||
| Accumulated other comprehensive (loss) | 118 | 641 | 783 | 883 | 412 | ||||||||||||||||
| Total shareholders' equity | 139,178 | 136,410 | 134,595 | 133,665 | 131,193 | ||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,947,588 | $ | 1,905,779 | $ | 1,972,751 | $ | 1,910,426 | $ | 1,207,482 | |||||||||||
| - | - | - | - | - | |||||||||||||||||
| CAPITAL ADEQUACY | |||||||||||||||||||||
| Tier I leverage ratio | 7.46 | % | 7.49 | % | 7.84 | % | 8.13 | % | 10.66 | % | |||||||||||
| Tier I risk-based capital ratio | 9.47 | % | 10.11 | % | 10.57 | % | 11.27 | % | 10.62 | % | |||||||||||
| Total risk-based capital ratio | 12.34 | % | 13.22 | % | 13.80 | % | 12.87 | % | 12.07 | % | |||||||||||
| Total equity/ total assets | 7.15 | % | 7.16 | % | 6.82 | % | 7.00 | % | 10.87 | % | |||||||||||
| Book value per share | $ | 16.99 | $ | 16.69 | $ | 16.52 | $ | 16.43 | $ | 16.15 | |||||||||||
| Common shares outstanding | 8,189,598 | 8,171,734 | 8,149,678 | 8,133,457 | 8,121,848 | ||||||||||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | |||||||||||||||||||||
| INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED) | |||||||||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||||||
| Three months ended March 31, | Three months ended December 31, | ||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||
| Yields | Interest | Yields | Interest | ||||||||||||||||||
| Average | or | Income/ | Average | or | Income/ | ||||||||||||||||
| Balance | Rates | Expense | Balance | Rates | Expense | ||||||||||||||||
| ASSETS | |||||||||||||||||||||
| Interest earning assets: | |||||||||||||||||||||
| Loans (1) | $ | 1,415,506 | 4.18 | % | $ | 14,584 | $ | 1,375,664 | 4.14 | % | $ | 14,305 | |||||||||
| Federal funds sold | 369,223 | 0.10 | % | 88 | 480,790 | 0.11 | % | 131 | |||||||||||||
| Investment securities | 54,708 | 2.67 | % | 360 | 54,202 | 2.29 | % | 312 | |||||||||||||
| Total interest earning assets | 1,839,437 | 3.31 | % | 15,032 | 1,910,656 | 3.07 | % | 14,748 | |||||||||||||
| Noninterest-earning assets: | |||||||||||||||||||||
| Cash and due from banks | 23,033 | 20,616 | |||||||||||||||||||
| All other assets (2) | 60,269 | 62,389 | |||||||||||||||||||
| TOTAL | $ | 1,922,739 | $ | 1,993,661 | |||||||||||||||||
| LIABILITIES AND | |||||||||||||||||||||
| SHAREHOLDERS' EQUITY | |||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| Deposits: | |||||||||||||||||||||
| Demand | $ | 34,512 | 0.13 | % | $ | 11 | $ | 33,674 | 0.13 | % | $ | 11 | |||||||||
| Money market and savings | 644,740 | 0.61 | % | 972 | 604,578 | 0.74 | % | 1,118 | |||||||||||||
| Time | 199,953 | 0.42 | % | 208 | 200,606 | 0.46 | % | 230 | |||||||||||||
| Other | 192,803 | 1.06 | % | 505 | 318,570 | 0.78 | % | 626 | |||||||||||||
| Total interest-bearing liabilities | 1,072,008 | 0.64 | % | 1,696 | 1,157,428 | 0.68 | % | 1,985 | |||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||
| Demand deposits | 689,965 | 677,583 | |||||||||||||||||||
| Accrued expenses and | |||||||||||||||||||||
| other liabilities | 23,351 | 23,466 | |||||||||||||||||||
| Shareholders' equity | 137,415 | 135,184 | |||||||||||||||||||
| TOTAL | $ | 1,922,739 | $ | 1,993,661 | |||||||||||||||||
| Net interest income and margin (3) | 2.94 | % | $ | 13,336 | 2.66 | % | $ | 12,763 | |||||||||||||
| (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of | |||||||||||||||||||||
| yields. Interest income on loans includes amortization of deferred loan fees of $1.2 million and $1.0 million, respectively. | |||||||||||||||||||||
| (2) Other noninterest-earning assets includes the allowance for loan losses of $14.2 million and $13.4 million, respectively. | |||||||||||||||||||||
| (3) Net interest margin is net interest income divided by total interest-earning assets. | |||||||||||||||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | ||||||||||||||||||||
| INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED) | ||||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||
| Three months ended March 31, | ||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||
| Yields | Interest | Yields | Interest | |||||||||||||||||
| Average | or | Income/ | Average | or | Income/ | |||||||||||||||
| Balance | Rates | Expense | Balance | Rates | Expense | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||||
| Loans (1) | $ | 1,415,506 | 4.18 | % | $ | 14,584 | $ | 952,303 | 4.98 | % | $ | 11,783 | ||||||||
| Federal funds sold | 369,223 | 0.10 | % | 88 | 96,834 | 1.37 | % | 329 | ||||||||||||
| Investment securities | 54,708 | 2.67 | % | 360 | 28,294 | 2.72 | % | 191 | ||||||||||||
| Total interest earning assets | 1,839,437 | 3.31 | % | 15,032 | 1,077,431 | 4.59 | % | 12,303 | ||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||
| Cash and due from banks | 23,033 | 21,729 | ||||||||||||||||||
| All other assets (2) | 60,269 | 68,643 | ||||||||||||||||||
| TOTAL | $ | 1,922,739 | $ | 1,167,803 | ||||||||||||||||
| LIABILITIES AND | ||||||||||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Demand | $ | 34,512 | 0.13 | % | $ | 11 | $ | 23,747 | 0.12 | % | $ | 7 | ||||||||
| Money market and savings | 644,740 | 0.61 | % | 972 | 476,493 | 1.19 | % | 1,412 | ||||||||||||
| Time | 199,953 | 0.42 | % | 208 | 124,705 | 1.85 | % | 575 | ||||||||||||
| Other | 192,803 | 1.06 | % | 505 | 15,070 | 3.39 | % | 127 | ||||||||||||
| Total interest-bearing liabilities | 1,072,008 | 0.64 | % | 1,696 | 640,015 | 1.33 | % | 2,121 | ||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||
| Demand deposits | 689,965 | 375,039 | ||||||||||||||||||
| Accrued expenses and | ||||||||||||||||||||
| other liabilities | 23,351 | 21,406 | ||||||||||||||||||
| Shareholders' equity | 137,415 | 131,343 | ||||||||||||||||||
| TOTAL | $ | 1,922,739 | $ | 1,167,803 | ||||||||||||||||
| Net interest income and margin (3) | 2.94 | % | $ | 13,336 | 3.80 | % | $ | 10,182 | ||||||||||||
| (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of | ||||||||||||||||||||
| yields. Interest income on loans includes amortization of deferred loan fees (costs) of $1.2 million and $(294,000), respectively. | ||||||||||||||||||||
| (2) Other noninterest-earning assets includes the allowance for loan losses of 14.2 million and $11.1 million, respectively. | ||||||||||||||||||||
| (3) Net interest margin is net interest income divided by total interest-earning assets. | ||||||||||||||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | ||||||||||||||||||
| INTERIM CONSOLIDATED NON GAAP DATA (UNAUDITED) | ||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||
| REVENUE: | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | |||||||||||||
| Net interest income | $ | 13,336 | $ | 12,763 | $ | 11,188 | $ | 10,785 | $ | 10,182 | ||||||||
| Non-interest income | 921 | 916 | 1,028 | 777 | 1,290 | |||||||||||||
| Total revenue | $ | 14,257 | $ | 13,679 | $ | 12,216 | $ | 11,562 | $ | 11,472 | ||||||||
| PPP RELATED DEFERRED FEES AND COSTS: | Amortization | Deferred | ||||||||||||||||
| Deferred Balance at Origination | of Deferred | Balance | ||||||||||||||||
| 2020 Program | 2021 Program | Total | Balance | Remaining | ||||||||||||||
| PPP fees | $ | 9,086 | $ | 3,881 | $ | 12,967 | $ | 6,518 | $ | 6,449 | ||||||||
| PPP capitalized loan origination costs | 2,451 | 536 | 2,987 | 1,679 | $ | 1,308 | ||||||||||||
| Net PPP fees | $ | 6,635 | $ | 3,345 | $ | 9,980 | $ | 4,839 | $ | 5,141 | ||||||||
| IMPACT OF PPP ACTIVITY REFLECTED IN | Amortization of Deferred Balance | |||||||||||||||||
| NET INTEREST INCOME: | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | |||||||||||||
| PPP fees | $ | 2,222 | $ | 2,083 | $ | 1,114 | $ | 1,099 | $ | - | ||||||||
| PPP capitalized loan origination costs | 633 | 527 | 266 | 253 | - | |||||||||||||
| Net PPP fees | $ | 1,589 | $ | 1,556 | $ | 848 | $ | 846 | $ | - | ||||||||
| NON-INTEREST EXPENSE: | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | |||||||||||||
| Total non-interest expense | $ | 10,080 | $ | 10,416 | $ | 10,545 | $ | 6,440 | $ | 10,407 | ||||||||
| Total capitalized loan origination costs | 1,513 | 1,198 | 986 | 4,797 | 912 | |||||||||||||
| Total operating expenses, before capitalization | ||||||||||||||||||
| of loan origination costs | $ | 11,593 | $ | 11,614 | $ | 11,531 | $ | 11,237 | $ | 11,319 | ||||||||
| GROSS LOANS: | 03/31/21 | 12/31/20 | 09/30/20 | 06/30/20 | 03/31/20 | |||||||||||||
| Gross loans | $ | 1,470,313 | $ | 1,369,070 | $ | 1,355,164 | $ | 1,299,481 | $ | 968,945 | ||||||||
| PPP loans | 353,426 | 306,373 | 362,088 | 361,632 | - | |||||||||||||
| Gross loans, excluding PPP loans | $ | 1,116,887 | $ | 1,062,697 | $ | 993,076 | $ | 937,849 | $ | 968,945 | ||||||||
GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases, financial disclosures and multimedia content to media, investors, and consumers worldwide.
