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Southern California Bancorp Announces Comprehensive Settlement of Litigation and Return of David I. Rainer
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
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Rhea-AI Summary
Southern California Bancorp (OTC Pink: BCAL) announces a comprehensive litigation settlement with PacWest Bancorp and Pacific Western Bank, totaling $6.5 million. The company recorded an after-tax loss contingency of $4.6 million in its Q2 financials. David I. Rainer returns as Chairman and CEO, expressing optimism about the company's future. Rainer praised interim leadership for maintaining operations during his sabbatical. The settlement aims to strengthen the organization, focusing on building a relationship-based business banking franchise in Southern California.
Positive
Return of David I. Rainer as Chairman and CEO, indicating strong leadership.
Settling litigation with PacWest Bancorp may reduce future legal uncertainties.
Negative
After-tax loss contingency of $4.6 million recorded due to the litigation settlement.
SAN DIEGO--(BUSINESS WIRE)--
Southern California Bancorp (“us,” “we,” “our,” or the “Company”) (OTC Pink: BCAL), the holding company for Bank of Southern California, N.A. (the “Bank”) announces a comprehensive settlement of all litigation with PacWest Bancorp and Pacific Western Bank (the “Litigation Settlement”) and the return from sabbatical of David I. Rainer as Chairman and Chief Executive Officer of the consolidated organization, effective September 1, 2022.
“I’m very pleased to resume my duties as Chairman and Chief Executive Officer of Southern California Bancorp and Bank of Southern California,” said David I. Rainer, Chairman and CEO of Southern California Bancorp and Bank of Southern California. “Lead Director Irwin Golds, acting as Interim Chairman, Executive Vice President and Bancorp CFO Thomas Dolan, acting as Interim CEO, and Rich Hernandez, in his newly appointed role as President, have done an exceptional job of leading the organization in my absence and I thank them for their efforts. I’m very excited to return and work with all our outstanding employees to continue building the premier relationship-based business banking franchise in Southern California.”
In anticipation of the $6.5 million Litigation Settlement, the Company recorded an after-tax loss contingency of $4.6 million in its second quarter financial results reported on August 1, 2022.
FORWARD-LOOKING STATEMENTS
In addition to historical information, certain matters set forth herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to management’s beliefs, projections and assumptions concerning future results and events. Forward-looking statements include descriptions of management’s plans or objectives for future operations, products or services, and forecasts of Southern California Bancorp’s revenues, earnings, or other measures of economic performance. As well, forward-looking statements may relate to future outlook and anticipated events, such as Southern California Bancorp's plans and protocols with regard to managing potential impacts related to the ongoing COVID-19 pandemic. These forward-looking statements involve risks and uncertainties, based on the beliefs and assumptions of management and on the information available to management at the time that such forward-looking statements were made and can be identified by the fact that they do not relate strictly to historical or current facts. They 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 or the negative version of those words or phrases.
Forward-looking statements involve substantial risks and uncertainties, many of which are difficult to predict and are generally beyond our control. Many factors could cause actual results to differ materially from those contemplated by these forward-looking statements. Except to the extent required by applicable law or regulation, Southern California Bancorp 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 except as required by law.
