Southern California Bancorp Reports Financial Results for the Fourth Quarter and Full Year 2020

Rhea-AI Summary

Southern California Bancorp (OTC Pink: BCAL) reported its 2020 financial results reflecting transformative growth, primarily due to the acquisition of CalWest Bancorp. The Company achieved a record revenue of $48.2 million, with total assets rising to $1.6 billion, an increase of $749 million from 2019. Despite significant loan origination of $558 million in PPP loans, net income dropped to $4.7 million or $0.48 per share, largely due to nonrecurring expenses. The Company maintained a strong capital position, with nonperforming assets at a low 0.06% of total assets.

Positive

• Record annual revenue of $48.2 million.
• Total assets increased by $749 million to $1.6 billion.
• Total loans increased by $557 million to $1.2 billion.
• Total deposits grew by $523 million to $1.2 billion.
• Participation in PPP loans amounted to $558 million.
• Maintained a low nonperforming assets ratio of 0.06%.

Negative

• Net income decreased to $4.7 million from $6.8 million in 2019.
• Fourth quarter net loss of $2.0 million compared to net income in 2019.
• Incurred $12.8 million in nonrecurring expenses.
• Net interest margin declined to 3.66% from 4.23% in the prior year.

Southern California Bancorp (the “Company”) (OTC Pink: BCAL), the holding company for Bank of Southern California, N.A. (the “Bank”) today reported financial results for the fourth quarter and full year of 2020.

The comparability of financial information for the fourth quarter and full year of 2020 to 2019 is affected by the Company’s acquisition of CalWest Bancorp (“CalWest”), effective May 29, 2020. Operating results for fourth quarter and full year 2020 include the combined operations of both entities from May 29, 2020.

Full Year and Fourth Quarter 2020 Highlights

• Reorganization of Bank of Southern California into the Company
• Acquisition of CalWest Bancorp (CalWest)
• Origination of $558 million in Paycheck Protection Program (PPP) loans
• Record annual revenue of $48.2 million
• Total assets increased $749 million from 2019 to $1.6 billion
• Total loans increased $557 million from 2019 to $1.2 billion
• Total deposits increased $523 million from 2019 to $1.2 billion
• Noninterest bearing demand deposits were 45% of total deposits at year-end 2020
• Nonperforming assets to total assets of 0.06% at December 31, 2020
• Consolidation of three branches for increased efficiency
• Completed private placement of common stock totaling $42 million
• Completed private placement of subordinated debt of $18 million
• Expanded Executive Management team and Board of Directors
• Continued status as well-capitalized, the highest regulatory category

“2020 was a transformational year for the Bank of Southern California, as we executed on a number of initiatives that positioned us for continued growth in 2021 and beyond,” said Nathan Rogge, President and Chief Executive Officer of Bank of Southern California. “The reorganization of the Bank under a holding company in May allowed us to acquire CalWest, which expanded our footprint into Orange County and added $312 million in assets to our balance sheet. In response to the COVID-19 pandemic, in 2020 we provided more than $558 million in Paycheck Protection Program (PPP) loans to local small businesses to keep their doors open and employees paid, and we continue to offer both first-time and Second Draw PPP loans in 2021. The acquisition of CalWest and participation in PPP grew our total loans in 2020 by $557 million to $1.2 billion at the end of the fourth quarter, with a correspondent increase in total deposits of $523 million to $1.2 billion.

“In November 2020, we welcomed the appointment of David Rainer as Executive Chairman of Southern California Bancorp and Bank of Southern California, and launched an expansion into Los Angeles County, hiring seasoned banking executives with deep roots in their local communities to support our goal of being the premier relationship-based bank for small and medium-sized businesses in Southern California. We continue to evaluate our options to increase efficiency and refine the Bank’s profile to that of a commercial banking model,” concluded Rogge.

“Nathan and his team made extraordinary strides in transforming the Company last year and building a foundation for future growth,” said David Rainer, Executive Chairman of Southern California Bancorp and Bank of Southern California. “We continue that transformation in 2021 with the addition of experienced bankers to expand our footprint and provide commercial banking services in Los Angeles and Orange counties and adjacent communities, as well as build the internal infrastructure needed to support and enable that growth. Our recently completed private placement provided an additional $42 million in equity capital to support those plans and we have also initiated a strategic business review to ensure we are delivering our products and services in the most professional manner, while providing our customers with the outstanding service they have come to expect from the Bank of Southern California.”

Full Year and Fourth Quarter Operating Results

Net Income

Net income for 2020 was $4.7 million or $0.48 per fully diluted share, compared with net income of $6.8 million or $0.78 per fully diluted share for 2019. The decrease in net income in 2020 was due to a $12.8 million increase in nonrecurring expenses. These expenses included a $4.6 million provision for loan and lease losses for the full year 2020, a $3.6 million increase over the prior year, which management believed was prudent given the current economic environment. The Company also recorded an increase of $4.0 million in strategic and other nonrecurring expenses, and $5.2 million in one-time salary and benefit expenses related to signing and retention bonuses. The increase in strategic and other nonrecurring expenses included merger and conversion expenses related to the acquisition of CalWest, the consolidation of three branch offices to increase future operating efficiency, and a one-time prepayment penalty of $2.4 million related to the early pay off of Federal Home Loan Bank (FHLB) advances.

Net loss for the fourth quarter of 2020 was $2.0 million or $(0.20) per fully diluted share, compared with net income of $1.6 million or $0.19 per diluted share in the fourth quarter of 2019 and net income of $2.2 million or $0.23 per fully diluted share in the third quarter of 2020. The loss in the fourth quarter of 2020 was related to various nonrecurring charges, as noted above.

Net Interest Income and Net Interest Margin

Net interest income totaled $45.9 million for the full year of 2020, an increase of $15.1 million or 49% from the previous year. The increase in net interest income was primarily due to the origination of $558 million of PPP loans, and the acquisition of CalWest in May 2020.

Net interest margin for the full year of 2020 was 3.66%, compared to 4.23% in the prior year. The decrease was primarily related to the yield on loans declining to 4.55% in 2020, compared with 5.47% in the prior year, which was largely due to the 150 basis points reduction in interest rates in March 2020. Additionally, yield on earnings assets declined to 4.13% in 2020, compared with 5.17% in the prior year, due to 2020’s lower interest rate environment.

Net interest income for the fourth quarter of 2020 was $13.1 million, an increase of $5.4 million or 70% from the fourth quarter of 2019. The increase was primarily due to an increase in average earning assets from the acquisition of CalWest, as well as PPP originations. Net interest margin for the fourth quarter of 2020 was 3.47%, compared with 4.01% in the same quarter of the prior year. The decline in the net interest margin of the fourth quarter of 2020 was largely due to a decrease on loan yields and average earning assets to 4.36% and 3.83%, respectively, from 5.23% and 4.88%, respectively, in the prior year.

Net interest income for the fourth quarter of 2020 was $13.1 million, compared with $13.4 million for the third quarter of 2020. Net interest margin for the fourth quarter of 2020 was 3.47%, compared to 3.60% in the third quarter. The decrease in net interest margin in the fourth quarter of 2020 was largely due to a reduction in the yield on average earning assets to 3.83%, from 4.03% in the prior quarter.

Average loan yields in the fourth quarter of 2020, excluding PPP loans, were 5.12%, an increase of 20 basis points from 4.92% in the prior quarter, primarily related to the fair value accretion of loans acquired in the CalWest acquisition. Average PPP loan yields decreased to 3.09% in the fourth quarter, compared to 3.38% in the prior quarter, due to adjustments to the Bank’s PPP loan fee accretion related to changes in cash flow assumptions on PPP loans in 2021.

Cost of funding for the full year of 2020 was 0.49%, compared to 1.02% for the full year of 2019. The decrease was related to a lower cost of deposits and other funding sources. Cost of funding for the fourth quarter of 2020 was 0.38%, down from 0.45% in the previous quarter. A detailed comparison of interest income, yields, costs, and net interest income is included in the table below:

		FY 2020				Q4 2020				Q3 2020
Interest Income on:
Total Loans		$ 50,476,783	4.55%			$14,255,623	4.36%			$14,772,183	4.31%
Loans excl PPP		-	-			10,482,994	5.12%			10,205,686	4.92%
PPP Loans		-	-			3,772,628	3.09%			4,566,497	3.38%
Investments		859,462	2.90%			222,737	2.61%			226,211	2.68%
Fed Funds & Int Earning		478,724	0.42%			41,094	0.09%			26,303	0.12%
Total Interest Income		51,814,968	4.13%			14,519,454	3.83%			15,024,697	4.03%
Int Exp on Deposits		3,880,133	0.39%			726,717	0.25%			930,474	0.32%
Int Exp on Borrowings		1,989,988	1.04%			648,616	0.94%			693,487	0.99%
Total Interest Expense		5,870,121	0.49%			1,375,333	0.38%			1,623,961	0.45%
Net Interest Income		45,944,847	3.66%			13,144,121	3.47%			13,400,736	3.60%

Non-interest Income

Non-interest income for the full year of 2020 was $2.3 million, an increase of $343,000 or 18%, compared with the full year of 2019. The increase in 2020 was primarily due to increases of $109,000 in service charges, fees and other income, and $115,000 in income from bank owned life insurance, both of which are attributable to the CalWest acquisition. Additionally, gains primarily from sales of investment securities in 2020 totaling $481,000, exceeded gains on loan sales and other gains in 2019, which combined totaled $363,000.

Total non-interest income for the fourth quarter of 2020 was $436,000, compared to $723,000 in the third quarter of 2020 and $321,000 in the fourth quarter of 2019.

Balance Sheet

Assets

Total assets at December 31, 2020, were $1.6 billion, an increase of $749 million or 90% from December 31, 2019. The increase in total assets was related to the acquisition of CalWest, which added $312 million in total assets to the Bank’s balance sheet, and the origination of $558 million of PPP loans in 2020. Total PPP loans were $407 million at December 31, 2020.

Loans

Total loans were $1.2 billion at December 31, 2020, an increase $557 million or 82% from December 31, 2019. The increase in total loans included increases of $86 million and $455 million, in other commercial real estate and commercial and industrial loans, respectively, from the prior year. The increase in commercial and industrial loans was largely due to the Company’s funding of PPP loans.

Deposits

Total deposits at December 31, 2020, were $1.2 billion, an increase of $57 million from the end of the prior quarter and $523 million from the prior year. Noninterest-bearing deposits at December 31, 2020, were $534 million or 45% of total deposits, compared to $504 million or 44% of total deposits at September 30, 2020, and $206 million or 31% of total deposits at December 31, 2019.

Asset Quality

Total non-performing assets were $0.9 million or 0.06% of total assets at December 31, 2020, compared with $1.1 million or 0.07% of total assets at September 30, 2020.

The Company had $340,000 in net recoveries in 2020, compared with $9,000 in net charge-offs in 2019.

The Company recorded no loan loss provision in the fourth quarter of 2020, after recording a $2.0 million provision in the third quarter, and the allowance for loan and lease losses (ALLL) remained at $10.3 million at the end of the fourth quarter of 2020. The Company continues to monitor macroeconomic variables related to COVID-19 and believes it is adequately provisioned for the current environment. Management will continue to monitor and manage the loan portfolio to minimize potential future losses.

As the initial onset of economic uncertainty became clearer, many customers who elected a payment deferral have been returned to paying status; a total of $162 million in loans have reinstated their normal loan payments. Of the remaining 12 loans currently on deferral, the following table details the exposure by industry:

Industry	Outstanding Loan Amounts ($ in 000)	Number of Loans
Hotels & Food	$4,915	5
Real Estate, Rental & Leasing	13,478	3
Arts Entertainment Recreation	1,045	1
Other	4,968	3
Total	$24,406	12

Relevant reserve ratios compared to the prior quarter are as follows:

	Q4 2020	Q3 2020	Q4 2019
ALLL to Total Loans	0.83%	0.76%	0.79%
ALLL and Loan Fair Value Credit Marks (LFVCM) to Total Loans	1.18%	1.14%	1.07%
ALLL and LFVCM to Total Loans, excluding PPP Loans	1.76%	1.88%	1.07%

Liquidity and Capital

The Bank has ample liquidity resources to meet its customer’s needs through both the Federal Home Loan Bank and Federal Reserve Bank’s PPP Liquidity Facility (PPP LF). At December 31, 2020, combined borrowing capacity available at both the FHLB and through PPP LF was over $350 million.

The significant growth in PPP loans in 2020 has been funded through a combination of increased DDA accounts, generally associated directly with the PPP Loans, borrowings under PPP LF, and other sources. On average during the fourth quarter, the total PPP Loan portfolio was funded through 50% DDA growth, 45% from borrowings, and 5% from other balance sheet liquidity.

PPP loans are considered zero risk-weighted assets and PPP LF advances are not counted in the leverage ratio. As such, preferential capital treatment of PPP LF advances, as well as the private placement completed in December, have helped maintain the Bank’s leverage capital ratio and total risk-based capital ratio at 12.1% and 20.4%, respectively, at the end of 2020.

ABOUT BANK OF SOUTHERN CALIFORNIA AND SOUTHERN CALIFORNIA BANCORP

A growing community bank, established in 2001, Bank of Southern California, N.A., with headquarters in San Diego, CA, offers a range of financial products to individuals, professionals, and small-to-medium sized businesses. The Bank's solution-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with its clients. The Bank currently operates branches in San Diego County, Los Angeles County, Orange County, San Bernardino County, and the Coachella Valley in Riverside County.

Southern California Bancorp is a registered bank holding company formed for the purpose of acquiring control of the Bank. The Bank became a wholly owned subsidiary of the Company in a reorganization transaction that closed on May 15, 2020.

For more information, please visit https://www.banksocal.com or call (844) BNK-SOCAL.

FORWARD-LOOKING STATEMENTS

This news release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, and Southern California Bancorp and Bank of Southern California (together, the “Company”) intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this news release. Factors that might cause such differences include, but are not limited to: the Company’s ability to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either nationally or locally, in areas in which the Company conducts its operations; changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company’s operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies.

The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

Southern California Bancorp
Balance Sheets
(Unaudited)
	Dec 31, 2020	Sept 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
ASSETS
Cash and due from banks	$11,950,639	$16,008,641	$20,893,528	$12,269,691	$9,897,767
Fed funds & int-bearing balances	238,866,116	105,543,557	83,029,504	87,730,465	80,950,002
Total cash and cash equivalents	250,816,755	121,552,198	103,923,032	100,000,156	90,847,769
Debt securities (AFS)	24,702,467	24,767,969	26,855,698	19,834,420	16,343,747
FRB, FHLB and other equity stock	8,872,900	8,872,900	8,899,450	6,593,600	6,242,550
Construction & land development	31,375,236	43,101,171	35,241,241	23,213,929	24,679,602
1-4 Family Residential	103,367,391	107,724,352	105,297,275	82,443,776	85,085,585
Multifamily	111,815,776	113,159,342	125,895,257	122,564,197	122,661,958
Other commercial real estate	404,856,966	403,795,137	403,110,978	315,264,381	318,691,858
Commercial & industrial	577,608,374	689,687,091	675,270,756	134,525,771	122,969,242
Other consumer	4,857,563	6,010,280	5,935,683	5,182,707	2,566,670
Total loans	1,233,881,306	1,363,477,373	1,350,751,190	683,194,761	676,654,915
Allowance for loan losses	(10,255,005)	(10,295,855)	(8,300,176)	(5,674,212)	(5,363,361)
Total loans and leases, net	1,223,626,301	1,353,181,518	1,342,451,014	677,520,549	671,291,554
Premises, equipment, and ROU, net	15,051,487	13,257,434	13,125,130	8,981,735	9,474,709
Other real estate owned	0	0	0	0	0
Goodwill and core deposit intangible	21,599,001	21,479,639	22,297,992	18,339,391	18,434,491
Bank owned life insurance	17,990,765	17,883,455	17,774,774	11,180,222	11,113,559
Accrued interest and other assets	16,388,641	14,291,215	10,629,800	9,601,820	6,437,979
Total Assets	$1,579,048,316	$1,575,286,328	$1,545,956,890	$852,051,893	$830,186,358
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand	$533,923,009	$503,929,563	$524,041,064	$230,494,656	$205,811,799
Interest bearing checking	83,566,875	96,527,122	89,429,765	61,903,709	54,180,961
Money market and savings	458,529,872	410,847,164	394,126,519	241,362,463	243,256,117
Time deposits	118,719,534	126,736,990	148,854,654	155,185,228	168,664,653
Total deposits	1,194,739,290	1,138,040,839	1,156,452,002	688,946,056	671,913,530
Other borrowings	199,648,070	297,357,238	251,086,895	34,649,168	35,015,405
Accrued interest and other liabilities	15,775,916	11,967,887	12,997,372	6,079,701	2,734,250
Total liabilities	1,410,163,276	1,447,365,964	1,420,536,269	729,674,925	709,663,185
Shareholders' Equity:
Common stock and APIC	146,895,943	103,932,450	103,595,385	103,444,194	103,249,020
Retained earnings	21,693,933	23,691,383	21,456,064	18,882,781	16,971,445
Accum. other comprehensive income	295,164	296,531	369,172	49,993	302,708
Total shareholders' equity	168,885,040	127,920,364	125,420,621	122,376,968	120,523,173
Total Liabilities and Shareholders' Equity	$1,579,048,316	$1,575,286,328	$1,545,956,890	$852,051,893	$830,186,358

Southern California Bancorp
Income Statements - Quarterly
(Unaudited)
	Dec 31, 2020	Sept 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
INTEREST INCOME
Loans, including fees	$14,255,623	$14,772,183	$12,480,097	$8,968,879	$8,934,552
Investment securities	222,737	226,211	195,036	215,478	213,361
Fed funds & int-bearing balances	41,094	26,303	57,300	354,027	272,029
Total interest income	14,519,454	15,024,697	12,732,433	9,538,384	9,419,942
INTEREST EXPENSE
Deposits	726,717	930,474	869,786	1,353,156	1,481,335
Other borrowings	648,616	693,487	447,830	200,055	202,361
Total interest expense	1,375,333	1,623,961	1,317,616	1,553,211	1,683,696
Net interest income	13,144,121	13,400,736	11,414,817	7,985,173	7,736,246
Provision for loan losses	0	2,000,000	2,252,000	300,000	200,000
Net interest income after provision	13,144,121	11,400,736	9,162,817	7,685,173	7,536,246
NONINTEREST INCOME
Service charges, fees and other income	421,803	364,797	309,359	358,953	253,979
Income on bank owned life insurance	107,310	108,682	78,125	66,663	67,391
Gains on loan sales	0	0	0	0	0
OREO, investment, other gains (losses)	(92,856)	250,009	2,149	321,714	(575)
Total noninterest income	436,257	723,488	389,633	747,330	320,795
NONINTEREST EXPENSE
Salaries and benefits	11,120,598	4,151,278	3,171,772	3,246,963	2,908,736
Occupancy and equipment	1,048,852	1,071,270	854,976	809,848	807,944
Strategic and other non-recurring expense	2,369,649	1,610,824	356,742	280,838	400,914
Other expense	1,894,352	2,135,533	1,441,300	1,356,518	1,394,744
Total noninterest expense	16,433,451	8,968,905	5,824,790	5,694,167	5,512,338
Income before income tax expense	(2,853,073)	3,155,319	3,727,660	2,738,336	2,344,703
Income tax expense (benefit)	(855,623)	920,000	1,154,377	827,000	709,000
Net Income (Loss)	($1,997,450)	$2,235,319	$2,573,283	$1,911,336	$1,635,703
Diluted earnings (loss) per share	($0.20)	$0.23	$0.27	$0.20	$0.19
Average shares outstanding	10,155,861	9,429,538	9,422,608	9,408,940	8,578,102
Operating profit (before non-recurring items) 1	($390,568)	$6,516,134	$6,334,253	$2,997,460	$2,946,192
1 Op profit (before non-recurring items) = Pre-tax, pre-provision earnings, before noninterest income gains (losses) and non-recurring expense.

Southern California Bancorp
Income Statements - Year-to-Date
(Unaudited)
	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
INTEREST INCOME
Loans, including fees	$50,476,782	$35,533,334	$26,706,751	$18,181,331
Investment securities	859,462	994,508	990,731	722,189
Fed funds & int-bearing balances	478,724	1,168,803	916,574	390,602
Total interest income	51,814,968	37,696,645	28,614,056	19,294,122
INTEREST EXPENSE
Deposits	3,880,133	6,132,207	3,609,863	1,539,536
Other borrowings	1,989,988	710,129	104,062	2,318
Total interest expense	5,870,121	6,842,336	3,713,925	1,541,854
Net interest income	45,944,847	30,854,309	24,900,131	17,752,268
Provision for loan losses	4,552,000	1,000,000	1,600,000	271,000
Net interest income after provision for loan losses	41,392,847	29,854,309	23,300,131	17,481,268
NONINTEREST INCOME
Service charges, fees and other income	1,454,912	1,345,879	1,417,528	1,113,485
Income on bank owned life insurance	360,780	245,420	227,371	239,902
Gains on loan sales	0	198,422	1,084,547	865,378
OREO, investment, other gains (losses)	481,016	164,446	73,631	(9,367)
Total noninterest income	2,296,708	1,954,167	2,803,077	2,209,398
NONINTEREST EXPENSE
Salaries and benefits	21,690,611	12,726,318	9,671,459	7,482,324
Occupancy and equipment	3,784,946	3,127,779	2,293,853	1,650,085
Strategic and other non-recurring expense	4,618,053	592,812	2,144,203	365,443
Other expense	6,827,703	5,678,555	4,461,685	3,224,122
Total noninterest expense	36,921,313	22,125,464	18,571,200	12,721,974
Income before income tax expense	6,768,242	9,683,012	7,532,008	6,968,692
Income tax expense	2,045,754	2,910,000	2,274,000	3,004,000
Net Income	$4,722,488	$6,773,012	$5,258,008	$3,964,692
Diluted earnings (loss) per share	$0.48	$0.78	$0.71	$0.74
Average shares outstanding	9,604,237	8,452,104	7,091,176	5,189,799
Operating profit (before non-recurring items) 1	$15,457,279	$10,912,956	$10,118,033	$6,749,124
1 Op profit (before non-recurring items) = Pre-tax, pre-provision earnings, before noninterest income gains (losses) and non-recurring expense.

Southern California Bancorp
Quarterly and YTD Financial Highlights
(Unaudited)		Quarterly						Annual
		2020	2020	2020	2019	2019
($$ in thousands except per share data)		4th Qtr	3rd Qtr	2nd Qtr	1st Qtr	4th Qtr		2020	2019
EARNINGS
Net interest income	$	13,144	13,401	11,415	7,985	7,736		45,945	30,854
Provision for loan losses	$	0	2,000	2,252	300	200		4,552	1,000
NonInterest income	$	436	723	390	747	321		2,297	1,954
NonInterest expense	$	16,433	8,969	5,825	5,694	5,512		36,921	22,125
Income tax expense	$	(856)	920	1,154	827	709		2,046	2,910
Net income (loss)	$	(1,997)	2,235	2,573	1,911	1,636		4,722	6,773
Basic earnings (loss) per share	$	(0.20)	0.24	0.27	0.20	0.19		0.49	0.80
Diluted earnings (loss) per share	$	(0.20)	0.23	0.27	0.20	.019		0.48	0.78
Average shares outstanding		10,155,861	9,429,538	9,422,608	9,408,940	8,578,102		9,604,237	8,452,104
Ending shares outstanding		13,267,380	9,455,065	9,424,565	9,412,690	9,405,190		13,267,380	9,405,190
PERFORMANCE RATIOS
Return on average assets		-0.50%	0.57%	0.80%	0.90%	0.79%		0.36%	0.87%
Return on average common equity		-6.06%	7.00%	8.33%	6.30%	5.93%		3.75%	6.39%
Yield on loans		4.36%	4.31%	4.55%	5.32%	5.23%		4.55%	5.47%
Yield on earning assets		3.83%	4.03%	4.17%	4.76%	4.88%		4.13%	5.17%
Cost of deposits		0.25%	0.32%	0.35%	0.78%	0.88%		0.39%	0.95%
Cost of funding		0.38%	0.45%	0.46%	0.86%	0.95%		0.49%	1.02%
Net interest margin		3.47%	3.60%	3.74%	3.98%	4.01%		3.66%	4.23%
Efficiency ratio		121.0%	63.5%	49.3%	65.2%	68.4%		76.5%	67.4%
CAPITAL
Tangible equity to tangible assets		9.46%	6.85%	6.77%	12.48%	12.58%		9.46%	12.58%
Book value (BV) per common share	$	12.73	13.53	13.31	13.00	12.81		12.73	12.81
Tangible BV per common share	$	11.10	11.26	10.94	11.05	10.85		11.10	10.85
ASSET QUALITY
Net loan charge-offs (recoveries)	$	41	4	(374)	(11)	(11)		(340)	9
Allowance for loan losses (ALLL)	$	10,255	10,296	8,300	5,674	5,363		10,255	5,363
ALLL to total loans		0.83%	0.76%	0.61%	0.83%	0.79%		0.83%	0.79%
Loan fair value credit marks (LFVCM)	$	4,333	5,205	5,076	1,649	1,906		4,333	1,906
ALLL and LFVCM to total loans		1.18%	1.14%	0.99%	1.07%	1.07%		1.18%	1.07%
ALLL & LFVCM to total loans (excl PPP)		1.76%	1.88%	1.62%	1.07%	1.07%		1.76%	1.07%
Nonperforming loans	$	896	1,125	1,734	1,433	1,911		896	1,911
Other real estate owned	$	0	0	0	0	0		0	0
Nonperforming assets to total assets		0.06%	0.07%	0.11%	0.17%	0.23%		0.06%	0.23%
END OF PERIOD BALANCES
Total loans	$	1,233,881	1,363,477	1,350,751	683,195	676,655		1,233,881	676,655
Total assets	$	1,579,048	1,575,286	1,545,957	852,052	830,186		1,579,048	830,186
Deposits	$	1,194,739	1,138,041	1,156,452	688,946	671,914		1,194,739	671,914
Loans to deposits		103.3%	119.8%	116.8%	99.2%	100.7%		103.3%	100.7%
Shareholders' equity	$	168,885	127,920	125,421	122,377	120,523		168,885	120,523
Full-time equivalent employees		147	118	122	92	97		147	97
AVERAGE BALANCES (QTRLY) | | (YTD)
Total loans	$	1,297,794	1,358,291	1,100,180	676,825	678,015		1,109,737	649,251
Earning assets	$	1,503,836	1,477,910	1,225,376	803,804	766,012		1,254,319	729,844
Total assets (net of AFS valuation)	$	1,578,118	1,556,364	1,296,741	855,397	818,989		1,323,209	781,386
Deposits	$	1,162,979	1,142,686	983,294	696,341	671,443		995,486	644,045
Shareholders' equity	$	130,818	126,670	123,899	121,773	109,464		125,790	105,963

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210201005163/en/

FAQ

What were Southern California Bancorp's 2020 financial results?

Southern California Bancorp reported a record revenue of $48.2 million for 2020, with total assets rising to $1.6 billion and net income of $4.7 million.

How did the acquisition of CalWest Bancorp affect BCAL's performance?

The acquisition contributed significant loan and deposit growth, with total loans increasing by $557 million and deposits rising by $523 million.

What is the impact of PPP loans on BCAL's financial results?

Southern California Bancorp originated $558 million in PPP loans, which positively impacted total loans but also contributed to nonrecurring expenses.

What was the net income for BCAL in the fourth quarter of 2020?

The net loss for the fourth quarter of 2020 was $2.0 million, compared to a net income of $1.6 million in the same quarter of 2019.

What is Southern California Bancorp's outlook for 2021?

The Company aims to continue its transformation and expand its footprint into Los Angeles and Orange counties, supported by the recent private placement of $42 million.