SOUTHERN CALIFORNIA BANCORP REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2024
Southern California Bancorp (NASDAQ: BCAL) reported net income of $190,000 ($0.01 per diluted share) for Q2 2024, down from $4.9 million ($0.26 per diluted share) in Q1 2024. The decrease was primarily due to a $4.8 million charge from the sale of other real estate owned properties. Key highlights include:
- Net interest margin increased to 3.94% from 3.80% in Q1
- Average loan yield rose to 6.21% from 6.02% in Q1
- Cost of funds increased modestly by 4 basis points to 2.21%
- Total deposits grew 0.3% to $1.94 billion
- Nonperforming assets ratio improved to 0.20% from 0.84% in Q1
The company expects to close its merger with California BanCorp on July 31, 2024, following shareholder approval.
Southern California Bancorp (NASDAQ: BCAL) ha riportato un reddito netto di $190.000 ($0.01 per azione diluita) per il secondo trimestre del 2024, in calo rispetto ai $4.9 milioni ($0.26 per azione diluita) nel primo trimestre del 2024. La diminuzione è stata principalmente causata da una perdita di $4.8 milioni derivante dalla vendita di altre proprietà immobiliari di proprietà dell'azienda. Principali punti salienti includono:
- Il margine di interesse netto è aumentato al 3.94% rispetto al 3.80% del primo trimestre
- Il rendimento medio dei prestiti è salito al 6.21% dal 6.02% del primo trimestre
- Il costo dei fondi è aumentato modestamente di 4 punti base al 2.21%
- I depositi totali sono cresciuti dello 0.3% a $1.94 miliardi
- Il rapporto degli attivi non performanti è migliorato allo 0.20% rispetto allo 0.84% del primo trimestre
La società prevede di completare la fusione con la California BanCorp il 31 luglio 2024, a seguito dell'approvazione degli azionisti.
Southern California Bancorp (NASDAQ: BCAL) reportó un ingreso neto de $190,000 ($0.01 por acción diluida) para el segundo trimestre de 2024, una disminución de $4.9 millones ($0.26 por acción diluida) en el primer trimestre de 2024. La disminución se debió principalmente a un cargo de $4.8 millones por la venta de otras propiedades inmobiliarias en su poder. Puntos clave incluyen:
- El margen de interés neto aumentó al 3.94% del 3.80% del primer trimestre
- El rendimiento promedio de los préstamos subió al 6.21% del 6.02% del primer trimestre
- El costo de los fondos aumentó modestamente en 4 puntos básicos al 2.21%
- Los depósitos totales crecieron un 0.3% a $1.94 mil millones
- La tasa de activos no rentables mejoró al 0.20% desde el 0.84% del primer trimestre
La empresa espera cerrar su fusión con California BanCorp el 31 de julio de 2024, tras la aprobación de los accionistas.
서던 캘리포니아 뱅콥(Southern California Bancorp, NASDAQ: BCAL)은 2024년 2분기 순이익이 190,000달러(희석주당 0.01달러)로 보고되었으며, 이는 2024년 1분기의 490만 달러(희석주당 0.26달러)에서 감소한 수치입니다. 이러한 감소는 주로 다른 부동산 소유자산의 매각에서 발생한 480만 달러의 비용으로 인한 것입니다. 주요 하이라이트는 다음과 같습니다:
- 순이자 마진이 3.94%로 증가하였으며, 이는 1분기의 3.80%에서 상승한 수치입니다.
- 평균 대출 수익률이 6.21%로 증가하였으며, 이는 1분기의 6.02%에서 오른 수치입니다.
- 자금 조달 비용은 4bp 상승하여 2.21%에 이르렀습니다.
- 총 예금이 0.3% 증가하여 19억 4천만 달러에 달했습니다.
- 부실 자산 비율이 1분기의 0.84%에서 0.20%로 개선되었습니다.
회사는 주주 승인 후 2024년 7월 31일에 캘리포니아 뱅콥(California BanCorp)과의 합병을 완료할 계획입니다.
Southern California Bancorp (NASDAQ: BCAL) a annoncé un revenu net de 190 000 $ (0,01 $ par action diluée) pour le 2e trimestre 2024, en baisse par rapport à 4,9 millions de dollars (0,26 $ par action diluée) au 1er trimestre 2024. La diminution était principalement due à une charge de 4,8 millions de dollars provenant de la vente d'autres biens immobiliers détenus. Les points clés incluent:
- La marge d'intérêt nette a augmenté à 3,94 % contre 3,80 % au 1er trimestre
- Le rendement moyen des prêts a augmenté à 6,21 % contre 6,02 % au 1er trimestre
- Le coût des fonds a légèrement augmenté de 4 points de base à 2,21 %
- Les dépôts totaux ont augmenté de 0,3 % pour atteindre 1,94 milliard de dollars
- Le ratio des actifs non performants s'est amélioré à 0,20 % contre 0,84 % au 1er trimestre
La société s'attend à conclure sa fusion avec la California BanCorp le 31 juillet 2024, après approbation des actionnaires.
Southern California Bancorp (NASDAQ: BCAL) meldete für das 2. Quartal 2024 ein Nettogewinn von 190.000 USD (0,01 USD pro verwässerter Aktie), ein Rückgang von 4,9 Millionen USD (0,26 USD pro verwässerter Aktie) im 1. Quartal 2024. Der Rückgang war hauptsächlich auf eine Belastung von 4,8 Millionen USD aus dem Verkauf von anderen Immobilienvermögen zurückzuführen. Wichtige Höhepunkte umfassen:
- Die Nettozinsspanne stieg auf 3,94 % von 3,80 % im 1. Quartal
- Die durchschnittliche Darlehensrendite stieg auf 6,21 % von 6,02 % im 1. Quartal
- Die Kosten der Mittel stiegen moderat um 4 Basispunkte auf 2,21 %
- Die Gesamteinlagen wuchsen um 0,3 % auf 1,94 Milliarden USD
- Das Verhältnis der nicht leistungsfähigen Vermögenswerte verbesserte sich auf 0,20 % von 0,84 % im 1. Quartal
Das Unternehmen erwartet, dass es am 31. Juli 2024 seine Fusion mit der California BanCorp nach der Genehmigung durch die Aktionäre abschließen wird.
- Net interest margin increased to 3.94% from 3.80% in Q1 2024
- Average loan yield rose to 6.21% from 6.02% in Q1 2024
- Total deposits grew 0.3% to $1.94 billion
- Nonperforming assets ratio improved to 0.20% from 0.84% in Q1 2024
- Merger with California BanCorp expected to close on July 31, 2024
- Net income decreased to $190,000 from $4.9 million in Q1 2024
- $4.8 million charge from the sale of other real estate owned properties
- Cost of funds increased by 4 basis points to 2.21%
- Efficiency ratio increased to 85.7% from 68.4% in Q1 2024
- Provision for credit losses increased to $2.9 million from a reversal of $331,000 in Q1 2024
Insights
Southern California Bancorp's Q2 2024 results reveal a significant decline in net income to
Despite this setback, there were some positive developments:
- Net interest margin improved to
3.94% from3.80% in Q1 - Yield on total interest-earning assets increased by 18 basis points to
5.97% - Yield on average total loans rose by 19 basis points to
6.21% - Cost of funds increased only modestly by 4 basis points to
2.21%
The bank's capital position remains strong, with tangible book value per share slightly increasing to
The upcoming merger with California BanCorp, expected to close on July 31, 2024, could be a game-changer for the bank's future growth prospects. Investors should closely monitor how this merger impacts the combined entity's financial performance and market position in the competitive California banking landscape.
Southern California Bancorp's Q2 2024 results highlight the ongoing challenges in the banking sector, particularly in managing real estate exposure. The
The bank's ability to improve its net interest margin in a challenging rate environment is commendable. The increase to
The stability in the deposit base is a positive sign, with total deposits increasing slightly to
Asset quality metrics showed mixed results. While non-performing assets decreased significantly to
The planned merger with California BanCorp could potentially strengthen the bank's competitive position, but integration risks and potential synergies need to be carefully evaluated.
Southern California Bancorp's Q2 2024 results reveal several risk management concerns that warrant attention:
- The
$4.8 million charge from OREO sales highlights potential weaknesses in the bank's real estate lending practices and valuation processes. - An increase in the provision for credit losses to
$2.9 million from a reversal of$331,000 in Q1 suggests deteriorating credit quality. - The rise in substandard loans by
$11.8 million to$23.1 million , primarily due to the downgrade of one construction loan and one 1-4 family residential loan, indicates potential stress in the loan portfolio. - The partial charge-off of
$1.5 million for a substandard nonaccrual multifamily loan raises questions about the bank's underwriting standards and collateral valuation practices.
On the positive side, the bank has maintained strong capital ratios, with the Bank's leverage capital ratio at
The upcoming merger with California BanCorp adds another layer of risk management complexity. While it may provide opportunities for diversification and growth, it also brings integration risks that need to be carefully managed.
Going forward, the bank should focus on strengthening its credit risk management practices, particularly in real estate lending and ensure robust due diligence and integration planning for the upcoming merger.
San Diego, Calif., July 29, 2024 (GLOBE NEWSWIRE) -- Southern California Bancorp (“us,” “we,” “our,” or the “Company”) (NASDAQ: BCAL), the holding company for Bank of Southern California, N.A. (the “Bank”) announces its consolidated financial results for the second quarter of 2024.
The Company reported net income of
“Our second quarter of 2024 financial results were impacted by the sale of other real estate owned (“OREO”) properties that sold for
“As we announced earlier this month, on July 17, 2024, at their respective shareholder meetings, shareholders of Southern California Bancorp and California BanCorp approved the merger of the two companies, and we expect the transaction to close on July 31, 2024. We are excited about the future and building what we believe will be the premier commercial banking franchise headquartered in the state of California.”
Second Quarter 2024 Highlights
- Net income of
$190 thousand , compared with$4.9 million in the prior quarter - Diluted earnings per share of
$0.01 , compared with$0.26 in the prior quarter - Net interest margin of
3.94% , compared with3.80% in the prior quarter; average loan yield of6.21% compared with6.02% in the prior quarter - Return on average assets of
0.03% , compared with0.86% in the prior quarter - Return on average common equity of
0.26% , compared with6.85% in the prior quarter - Efficiency ratio (non-GAAP1) of
85.7% compared with68.4% in the prior quarter; excluding merger related expenses the efficiency ratio was83.5% , compared with65.9% in the prior quarter - Tangible book value per common share ("TBV") (non-GAAP1) of
$13.71 at June 30, 2024, up$0.02 from$13.69 at March 31, 2024 - Total assets of
$2.29 billion at June 30, 2024, compared with$2.29 billion at March 31, 2024 - Total loans, including loans held for sale of
$1.88 billion at June 30, 2024, compared with$1.89 billion at March 31, 2024 - Nonperforming assets to total assets ratio of
0.20% at June 30, 2024, compared with0.84% at March 31, 2024, positively impacted by the sale of$13.1 million in other real estate owned in the second quarter of 2024
1 Reconciliations of non–U.S. generally accepted accounting principles (“GAAP”) measures are set forth at the end of this press release.
- Total deposits of
$1.94 billion at June 30, 2024, increased$5.3 million or0.3% , compared with$1.93 billion at March 31, 2024 - Noninterest-bearing demand deposits were
$666.6 million at June 30, 2024, representing34.4% of total deposits, compared with$652.0 million , or33.8% of total deposits at March 31, 2024 - Cost of deposits was
2.12% , compared with2.05% in the prior quarter - Cost of funds was
2.21% , compared with2.17% in the prior quarter - Bank's capital exceeds minimums to be “well-capitalized,” the highest regulatory capital category
Second Quarter Operating Results
Net Income
Net income for the second quarter of 2024 was
Net Interest Income and Net Interest Margin
Net interest income for the second quarter of 2024 was
Net interest margin for the second quarter of 2024 was
Cost of funds for the second quarter of 2024 was
Average total borrowings decreased
Provision for Credit Losses
The Company recorded a provision for credit losses of
Noninterest Income
The Company recorded noninterest income of
Noninterest Expense
Total noninterest expense for the second quarter of 2024 was
Salaries and employee benefits decreased
Efficiency ratio (non-GAAP1) for the second quarter of 2024 was
Income Tax
In the second quarter of 2024, the Company’s income tax expense was
Balance Sheet
Assets
Total assets at June 30, 2024 were
Loans
Total loans held for investment were
Deposits
Total deposits at June 30, 2024 were
Federal Home Loan Bank (“FHLB”) and Liquidity
The Company was able to repay a portion of its higher cost FHLB borrowings with the liquidity primarily derived from the increase in total deposits during the second quarter of 2024. At June 30, 2024, the Company had overnight FHLB borrowings of
At June 30, 2024, the Company had available borrowing capacity from the FHLB secured line of credit of approximately
Asset Quality
Total non-performing assets decreased to
The decrease in non-performing assets in the second quarter of 2024 was primarily attributable to the sale of
Total non-performing loans decreased to
Special mention loans decreased by
The Company had no loans over 90 days past due that were accruing interest at June 30, 2024 and March 31, 2024.
There were no loan delinquencies (30-89 days past due, excluding nonaccrual loans) at June 30, 2024 and March 31, 2024.
The allowance for credit losses, which is comprised of the allowance for loan losses (“ALL”) and reserve for unfunded loan commitments, totaled
The ALL was
Capital
Tangible book value (non-GAAP1) per common share at June 30, 2024, was
The Bank’s leverage capital ratio and total risk-based capital ratio were
ABOUT SOUTHERN CALIFORNIA BANCORP AND BANK OF SOUTHERN CALIFORNIA, N.A.
Southern California Bancorp (NASDAQ: BCAL) is a registered bank holding company headquartered in San Diego, California. Bank of Southern California, N.A., a national banking association chartered under the laws of the United States (the “Bank”) and regulated by the Office of Comptroller of the Currency, is a wholly owned subsidiary of Southern California Bancorp. Established in 2001 and headquartered in San Diego, California, the Bank offers a range of financial products and services to individuals, professionals, and small- to medium-sized businesses through its 13 branch offices serving Orange, Los Angeles, Riverside, San Diego, and Ventura counties, as well as the Inland Empire. The Bank’s solutions-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with its clients. Additional information is available at www.banksocal.com.
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 and the proposed merger (the “Merger”) of the Company and California BanCorp (“CBC”), 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.
Some factors that could cause actual results to differ materially from historical or expected results include, among others: the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”); changes in real estate markets and general economic conditions, either nationally or locally in the areas in which the Company conducts business; the impact on financial markets from geopolitical conflicts; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher than anticipated defaults in the Company’s loan portfolio; changes in management’s estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; the impacts of recent bank failures; the occurrence of any event, change or other circumstances that could give rise to the right of the Company or CBC to terminate their agreement with respect to the Merger; the outcome of any legal proceedings that may be instituted against the Company or CBC; delays in completing the Merger; the failure to satisfy any of the conditions to the Merger on a timely basis or at all; the ability to complete the Merger and integration of the Company and CBC successfully; costs being greater than anticipated; cost savings being less than anticipated; the risk that the Merger disrupts the business of the Company, CBC or both; difficulties in retaining senior management, employees or customers; and other factors that may affect the future results of the Company and CBC.
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, 2023, 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.
Southern California Bancorp and Subsidiary
Financial Highlights (Unaudited)
| At or for the Three Months Ended | At or for the Six Months Ended | |||||||||||||||||||
| June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||||||
| ($ in thousands except share and per share data) | ||||||||||||||||||||
| EARNINGS | ||||||||||||||||||||
| Net interest income | $ | 21,007 | $ | 20,494 | $ | 23,426 | $ | 41,501 | $ | 48,318 | ||||||||||
| Provision for (reversal of) credit losses | $ | 2,893 | $ | (331 | ) | $ | (15 | ) | $ | 2,562 | $ | 187 | ||||||||
| Noninterest income | $ | 1,169 | $ | 1,413 | $ | 1,096 | $ | 2,582 | $ | 2,666 | ||||||||||
| Noninterest expense | $ | 19,005 | $ | 14,981 | $ | 14,607 | $ | 33,986 | $ | 29,626 | ||||||||||
| Income tax expense | $ | 88 | $ | 2,322 | $ | 3,212 | $ | 2,410 | $ | 6,229 | ||||||||||
| Net income | $ | 190 | $ | 4,935 | $ | 6,718 | $ | 5,125 | $ | 14,942 | ||||||||||
| Pre-tax pre-provision income (1) | $ | 3,171 | $ | 6,926 | $ | 9,915 | $ | 10,097 | $ | 21,358 | ||||||||||
| Adjusted pre-tax pre-provision income (1) | $ | 3,662 | $ | 7,475 | $ | 9,915 | $ | 11,137 | $ | 21,358 | ||||||||||
| Diluted earnings per share | $ | 0.01 | $ | 0.26 | $ | 0.36 | $ | 0.27 | $ | 0.80 | ||||||||||
| Shares outstanding at period end | 18,547,352 | 18,527,178 | 18,296,365 | 18,547,352 | 18,296,365 | |||||||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||||||
| Return on average assets | 0.03 | % | 0.86 | % | 1.18 | % | 0.45 | % | 1.32 | % | ||||||||||
| Adjusted return on average assets (1) | 0.11 | % | 0.95 | % | 1.18 | % | 0.53 | % | 1.32 | % | ||||||||||
| Return on average common equity | 0.26 | % | 6.85 | % | 9.93 | % | 3.53 | % | 11.29 | % | ||||||||||
| Adjusted return on average common equity (1) | 0.82 | % | 7.61 | % | 9.93 | % | 4.19 | % | 11.29 | % | ||||||||||
| Yield on total loans | 6.21 | % | 6.02 | % | 5.91 | % | 6.11 | % | 5.85 | % | ||||||||||
| Yield on interest earning assets | 5.97 | % | 5.79 | % | 5.64 | % | 5.88 | % | 5.58 | % | ||||||||||
| Cost of deposits | 2.12 | % | 2.05 | % | 1.29 | % | 2.08 | % | 1.05 | % | ||||||||||
| Cost of funds | 2.21 | % | 2.17 | % | 1.38 | % | 2.19 | % | 1.13 | % | ||||||||||
| Net interest margin | 3.94 | % | 3.80 | % | 4.36 | % | 3.87 | % | 4.54 | % | ||||||||||
| Efficiency ratio (1) | 85.70 | % | 68.38 | % | 59.57 | % | 77.10 | % | 58.11 | % | ||||||||||
| Adjusted efficiency ratio (1) | 83.49 | % | 65.88 | % | 59.57 | % | 74.74 | % | 58.11 | % | ||||||||||
| As of | ||||||||||||
| June 30, 2024 | March 31, 2024 | December 31, 2023 | ||||||||||
| ($ in thousands except share and per share data) | ||||||||||||
| CAPITAL | ||||||||||||
| Tangible equity to tangible assets (1) | 11.28 | % | 11.27 | % | 10.73 | % | ||||||
| Book value (BV) per common share | $ | 15.81 | $ | 15.79 | $ | 15.69 | ||||||
| Tangible BV per common share (1) | $ | 13.71 | $ | 13.69 | $ | 13.56 | ||||||
| ASSET QUALITY | ||||||||||||
| Allowance for loan losses (ALL) | $ | 23,788 | $ | 22,254 | $ | 22,569 | ||||||
| Reserve for unfunded loan commitments | $ | 819 | $ | 916 | $ | 933 | ||||||
| Allowance for credit losses (ACL) | $ | 24,607 | $ | 23,170 | $ | 23,502 | ||||||
| Allowance for loan losses to nonperforming loans | 5.07 | x | 3.62 | x | 1.74 | x | ||||||
| ALL to total loans held for investment | 1.27 | % | 1.18 | % | 1.15 | % | ||||||
| ACL to total loans held for investment | 1.31 | % | 1.23 | % | 1.20 | % | ||||||
| 30-89 days past due, excluding nonaccrual loans | $ | — | $ | — | $ | 19 | ||||||
| Over 90 days past due, excluding nonaccrual loans | $ | — | $ | — | $ | — | ||||||
| Special mention loans | $ | 27,861 | $ | 39,591 | $ | 2,996 | ||||||
| Special mention loans to total loans held for investment | 1.48 | % | 2.10 | % | 0.15 | % | ||||||
| Substandard loans | $ | 23,080 | $ | 11,299 | $ | 19,502 | ||||||
| Substandard loans to total loans held for investment | 1.23 | % | 0.60 | % | 1.00 | % | ||||||
| Nonperforming loans | $ | 4,696 | $ | 6,153 | $ | 13,004 | ||||||
| Nonperforming loans total loans held for investment | 0.25 | % | 0.33 | % | 0.66 | % | ||||||
| Other real estate owned, net | $ | — | $ | 13,114 | $ | — | ||||||
| Nonperforming assets | $ | 4,696 | $ | 19,267 | $ | 13,004 | ||||||
| Nonperforming assets to total assets | 0.20 | % | 0.84 | % | 0.55 | % | ||||||
| END OF PERIOD BALANCES | ||||||||||||
| Total loans, including loans held for sale | $ | 1,884,599 | $ | 1,886,085 | $ | 1,964,791 | ||||||
| Total assets | $ | 2,293,693 | $ | 2,289,715 | $ | 2,360,252 | ||||||
| Deposits | $ | 1,935,862 | $ | 1,930,544 | $ | 1,943,556 | ||||||
| Loans to deposits | 97.4 | % | 97.7 | % | 101.1 | % | ||||||
| Shareholders’ equity | $ | 293,219 | $ | 292,499 | $ | 288,152 | ||||||
(1) Non-GAAP measure. See – GAAP to Non-GAAP reconciliation.
| At or for the Three Months Ended | At or for the Six Months Ended | |||||||||||||||||||
| ALLOWANCE for CREDIT LOSSES | June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| Allowance for loan losses | ||||||||||||||||||||
| Balance at beginning of period | $ | 22,254 | $ | 22,569 | $ | 22,391 | $ | 22,569 | $ | 17,099 | ||||||||||
| Adoption of ASU 2016-13 (1) | — | — | — | — | 5,027 | |||||||||||||||
| Provision for (reversal of) credit losses | 2,990 | (314 | ) | 120 | 2,676 | 398 | ||||||||||||||
| Charge-offs | (1,456 | ) | (1 | ) | (9 | ) | (1,457 | ) | (36 | ) | ||||||||||
| Recoveries | — | — | — | — | 14 | |||||||||||||||
| Net charge-offs | (1,456 | ) | (1 | ) | (9 | ) | (1,457 | ) | (22 | ) | ||||||||||
| Balance, end of period | $ | 23,788 | $ | 22,254 | $ | 22,502 | $ | 23,788 | $ | 22,502 | ||||||||||
| Reserve for unfunded loan commitments (2) | ||||||||||||||||||||
| Balance, beginning of period | $ | 916 | $ | 933 | $ | 1,673 | $ | 933 | $ | 1,310 | ||||||||||
| Adoption of ASU 2016-13 (1) | — | — | — | — | 439 | |||||||||||||||
| Reversal of credit losses | (97 | ) | (17 | ) | (135 | ) | (114 | ) | (211 | ) | ||||||||||
| Balance, end of period | 819 | 916 | 1,538 | 819 | 1,538 | |||||||||||||||
| Allowance for credit losses | $ | 24,607 | $ | 23,170 | $ | 24,040 | $ | 24,607 | $ | 24,040 | ||||||||||
| ALL to total loans held for investment | 1.27 | % | 1.18 | % | 1.18 | % | 1.27 | % | 1.18 | % | ||||||||||
| ACL to total loans held for investment | 1.31 | % | 1.23 | % | 1.26 | % | 1.31 | % | 1.26 | % | ||||||||||
| Net (charge-offs) recoveries to average total loans | (0.31 | )% | 0.00 | % | 0.00 | % | (0.15 | )% | 0.00 | % | ||||||||||
| (1) | Represents the impact of adopting ASU 2016-13, Financial Instruments - Credit Losses on January 1, 2023. As a result of adopting ASU 2016-13, our methodology to compute our allowance for credit losses is based on a current expected credit loss methodology, rather than the previously applied incurred loss methodology. |
| (2) | Included in “Accrued interest and other liabilities” on the consolidated balance sheet. |
Southern California Bancorp and Subsidiary
Balance Sheets (Unaudited)
| June 30, 2024 | March 31, 2024 | December 31, 2023 | ||||||||||
| ($ in thousands) | ||||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 29,153 | $ | 53,695 | $ | 33,008 | ||||||
| Federal funds sold & interest-bearing balances | 75,580 | 32,847 | 53,785 | |||||||||
| Total cash and cash equivalents | 104,733 | 86,542 | 86,793 | |||||||||
| Debt securities available-for-sale, at fair value (amortized cost of | 123,653 | 126,957 | 130,035 | |||||||||
| Debt securities held-to-maturity, at cost (fair value of | 53,449 | 53,533 | 53,616 | |||||||||
| Loans held for sale | 6,982 | 2,803 | 7,349 | |||||||||
| Loans held for investment: | ||||||||||||
| Construction & land development | 205,072 | 242,098 | 243,521 | |||||||||
| 1-4 family residential | 157,323 | 149,361 | 143,903 | |||||||||
| Multifamily | 187,960 | 183,846 | 221,247 | |||||||||
| Other commercial real estate | 1,043,662 | 1,025,381 | 1,024,243 | |||||||||
| Commercial & industrial | 283,203 | 279,788 | 320,142 | |||||||||
| Other consumer | 397 | 2,808 | 4,386 | |||||||||
| Total loans held for investment | 1,877,617 | 1,883,282 | 1,957,442 | |||||||||
| Allowance for credit losses - loans | (23,788 | ) | (22,254 | ) | (22,569 | ) | ||||||
| Total loans held for investment, net | 1,853,829 | 1,861,028 | 1,934,873 | |||||||||
| Restricted stock at cost | 16,898 | 16,066 | 16,055 | |||||||||
| Premises and equipment | 12,741 | 12,990 | 13,270 | |||||||||
| Right of use asset | 8,298 | 8,711 | 9,291 | |||||||||
| Other real estate owned, net | — | 13,114 | — | |||||||||
| Goodwill | 37,803 | 37,803 | 37,803 | |||||||||
| Core deposit intangible | 1,065 | 1,130 | 1,195 | |||||||||
| Bank owned life insurance | 39,445 | 39,179 | 38,918 | |||||||||
| Deferred taxes, net | 11,080 | 10,204 | 11,137 | |||||||||
| Accrued interest and other assets | 23,717 | 19,655 | 19,917 | |||||||||
| Total assets | $ | 2,293,693 | $ | 2,289,715 | $ | 2,360,252 | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| Deposits: | ||||||||||||
| Noninterest-bearing demand | $ | 666,606 | $ | 651,991 | $ | 675,098 | ||||||
| Interest-bearing NOW accounts | 355,994 | 358,598 | 381,943 | |||||||||
| Money market and savings accounts | 660,808 | 661,835 | 636,685 | |||||||||
| Time deposits | 252,454 | 258,120 | 249,830 | |||||||||
| Total deposits | 1,935,862 | 1,930,544 | 1,943,556 | |||||||||
| Borrowings | 42,913 | 44,889 | 102,865 | |||||||||
| Operating lease liability | 10,931 | 11,440 | 12,117 | |||||||||
| Accrued interest and other liabilities | 10,768 | 10,343 | 13,562 | |||||||||
| Total liabilities | 2,000,474 | 1,997,216 | 2,072,100 | |||||||||
| Shareholders’ Equity: | ||||||||||||
| Common stock - 50,000,000 shares authorized, no par value; issued and outstanding 18,547,352, 18,527,178 and 18,369,115 at June 30, 2024, March 31, 2024 and December 31, 2023) | 224,006 | 223,128 | 222,036 | |||||||||
| Retained earnings | 75,700 | 75,510 | 70,575 | |||||||||
| Accumulated other comprehensive loss - net of taxes | (6,487 | ) | (6,139 | ) | (4,459 | ) | ||||||
| Total shareholders’ equity | 293,219 | 292,499 | 288,152 | |||||||||
| Total liabilities and shareholders’ equity | $ | 2,293,693 | $ | 2,289,715 | $ | 2,360,252 | ||||||
Southern California Bancorp and Subsidiary
Income Statements - Quarterly and Year-to-Date (Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||||||
| ($ in thousands except share and per share data) | ||||||||||||||||||||
| INTEREST AND DIVIDEND INCOME | ||||||||||||||||||||
| Interest and fees on loans | $ | 29,057 | $ | 28,584 | $ | 27,987 | $ | 57,641 | $ | 55,006 | ||||||||||
| Interest on debt securities | 1,229 | 1,213 | 833 | 2,442 | 1,564 | |||||||||||||||
| Interest on tax-exempted debt securities | 306 | 306 | 456 | 612 | 943 | |||||||||||||||
| Interest and dividends from other institutions | 1,257 | 1,161 | 984 | 2,418 | 1,956 | |||||||||||||||
| Total interest and dividend income | 31,849 | 31,264 | 30,260 | 63,113 | 59,469 | |||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||
| Interest on NOW, savings, and money market accounts | 7,039 | 6,770 | 4,730 | 13,809 | 7,633 | |||||||||||||||
| Interest on time deposits | 3,145 | 3,021 | 1,531 | 6,166 | 2,506 | |||||||||||||||
| Interest on borrowings | 658 | 979 | 573 | 1,637 | 1,012 | |||||||||||||||
| Total interest expense | 10,842 | 10,770 | 6,834 | 21,612 | 11,151 | |||||||||||||||
| Net interest income | 21,007 | 20,494 | 23,426 | 41,501 | 48,318 | |||||||||||||||
| Provision for (reversal of ) credit losses (1) | 2,893 | (331 | ) | (15 | ) | 2,562 | 187 | |||||||||||||
| Net interest income after provision for (reversal of) credit losses | 18,114 | 20,825 | 23,441 | 38,939 | 48,131 | |||||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||||
| Service charges and fees on deposit accounts | 568 | 525 | 530 | 1,093 | 969 | |||||||||||||||
| Gain on sale of loans | — | 415 | 77 | 415 | 885 | |||||||||||||||
| Bank owned life insurance income | 266 | 261 | 232 | 527 | 455 | |||||||||||||||
| Servicing and related (expense) income on loans | (5 | ) | 73 | 87 | 68 | 162 | ||||||||||||||
| Loss on sale of debt securities | — | — | 34 | — | 34 | |||||||||||||||
| Loss on sale of building and related fixed assets | (19 | ) | — | — | (19 | ) | — | |||||||||||||
| Other charges and fees | 359 | 139 | 136 | 498 | 161 | |||||||||||||||
| Total noninterest income | 1,169 | 1,413 | 1,096 | 2,582 | 2,666 | |||||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||||||
| Salaries and employee benefits | 8,776 | 9,610 | 9,674 | 18,386 | 19,915 | |||||||||||||||
| Occupancy and equipment expenses | 1,445 | 1,452 | 1,527 | 2,897 | 2,974 | |||||||||||||||
| Data processing | 1,186 | 1,150 | 1,176 | 2,336 | 2,232 | |||||||||||||||
| Legal, audit and professional | 557 | 516 | 667 | 1,073 | 1,452 | |||||||||||||||
| Regulatory assessments | 347 | 387 | 367 | 734 | 819 | |||||||||||||||
| Director and shareholder expenses | 229 | 203 | 214 | 432 | 427 | |||||||||||||||
| Merger and related expenses | 491 | 549 | — | 1,040 | — | |||||||||||||||
| Core deposit intangible amortization | 65 | 65 | 90 | 130 | 181 | |||||||||||||||
| Other real estate owned expense | 4,935 | 88 | — | 5,023 | — | |||||||||||||||
| Other expense | 974 | 961 | 892 | 1,935 | 1,626 | |||||||||||||||
| Total noninterest expense | 19,005 | 14,981 | 14,607 | 33,986 | 29,626 | |||||||||||||||
| Income before income taxes | 278 | 7,257 | 9,930 | 7,535 | 21,171 | |||||||||||||||
| Income tax expense | 88 | 2,322 | 3,212 | 2,410 | 6,229 | |||||||||||||||
| Net income | $ | 190 | $ | 4,935 | $ | 6,718 | $ | 5,125 | $ | 14,942 | ||||||||||
| Net income per share - basic | $ | 0.01 | $ | 0.27 | $ | 0.37 | $ | 0.28 | $ | 0.82 | ||||||||||
| Net income per share - diluted | $ | 0.01 | $ | 0.26 | $ | 0.36 | $ | 0.27 | $ | 0.80 | ||||||||||
| Weighted average common share-diluted | 18,799,513 | 18,801,716 | 18,596,228 | 18,800,614 | 18,612,944 | |||||||||||||||
| Pre-tax, pre-provision income (2) | $ | 3,171 | $ | 6,926 | $ | 9,915 | $ | 10,097 | $ | 21,358 | ||||||||||
| (1) | Included reversal of provision for unfunded loan commitments of |
| (2) | Non-GAAP measure. See – GAAP to Non-GAAP reconciliation. |
Southern California Bancorp and Subsidiary
Average Balance Sheets and Yield Analysis
(Unaudited)
| Three Months Ended | ||||||||||||||||||||||||||||||||||||
| June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||||||||||||||||||||||||||||
| Average Balance | Income/Expense | Yield/Cost | Average Balance | Income/Expense | Yield/Cost | Average Balance | Income/Expense | Yield/Cost | ||||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||||||||
| Total loans | $ | 1,882,845 | $ | 29,057 | 6.21 | % | $ | 1,909,271 | $ | 28,584 | 6.02 | % | $ | 1,900,033 | $ | 27,987 | 5.91 | % | ||||||||||||||||||
| Taxable debt securities | 123,906 | 1,229 | 3.99 | % | 126,803 | 1,213 | 3.85 | % | 106,208 | 833 | 3.15 | % | ||||||||||||||||||||||||
| Tax-exempt debt securities (1) | 53,754 | 306 | 2.90 | % | 53,842 | 306 | 2.89 | % | 70,470 | 456 | 3.29 | % | ||||||||||||||||||||||||
| Deposits in other financial institutions | 47,417 | 638 | 5.41 | % | 54,056 | 716 | 5.33 | % | 42,770 | 537 | 5.04 | % | ||||||||||||||||||||||||
| Fed funds sold/resale agreements | 19,062 | 261 | 5.51 | % | 9,771 | 134 | 5.52 | % | 17,639 | 228 | 5.18 | % | ||||||||||||||||||||||||
| Restricted stock investments and other bank stock | 17,091 | 358 | 8.42 | % | 16,412 | 311 | 7.62 | % | 16,039 | 219 | 5.48 | % | ||||||||||||||||||||||||
| Total interest-earning assets | 2,144,075 | 31,849 | 5.97 | % | 2,170,155 | 31,264 | 5.79 | % | 2,153,159 | 30,260 | 5.64 | % | ||||||||||||||||||||||||
| Total noninterest-earning assets | 150,603 | 139,672 | 133,716 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 2,294,678 | $ | 2,309,827 | $ | 2,286,875 | ||||||||||||||||||||||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
| Interest-bearing NOW accounts | $ | 361,244 | $ | 2,134 | 2.38 | % | $ | 359,784 | $ | 2,045 | 2.29 | % | $ | 308,863 | $ | 1,279 | 1.66 | % | ||||||||||||||||||
| Money market and savings accounts | 653,244 | 4,905 | 3.02 | % | 648,640 | 4,725 | 2.93 | % | 662,487 | 3,451 | 2.09 | % | ||||||||||||||||||||||||
| Time deposits | 259,722 | 3,145 | 4.87 | % | 255,474 | 3,021 | 4.76 | % | 175,161 | 1,531 | 3.51 | % | ||||||||||||||||||||||||
| Total interest-bearing deposits | 1,274,210 | 10,184 | 3.21 | % | 1,263,898 | 9,791 | 3.12 | % | 1,146,511 | 6,261 | 2.19 | % | ||||||||||||||||||||||||
| Borrowings: | ||||||||||||||||||||||||||||||||||||
| FHLB advances | 27,391 | 387 | 5.68 | % | 50,593 | 708 | 5.63 | % | 22,791 | 302 | 5.31 | % | ||||||||||||||||||||||||
| Subordinated debt | 17,901 | 271 | 6.09 | % | 17,878 | 271 | 6.10 | % | 17,806 | 271 | 6.10 | % | ||||||||||||||||||||||||
| Total borrowings | 45,292 | 658 | 5.84 | % | 68,471 | 979 | 5.75 | % | 40,597 | 573 | 5.66 | % | ||||||||||||||||||||||||
| Total interest-bearing liabilities | 1,319,502 | 10,842 | 3.30 | % | 1,332,369 | 10,770 | 3.25 | % | 1,187,108 | 6,834 | 2.31 | % | ||||||||||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits (2) | 658,001 | 661,265 | 805,553 | |||||||||||||||||||||||||||||||||
| Other liabilities | 23,054 | 26,430 | 22,727 | |||||||||||||||||||||||||||||||||
| Shareholders’ equity | 294,121 | 289,763 | 271,487 | |||||||||||||||||||||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 2,294,678 | $ | 2,309,827 | $ | 2,286,875 | ||||||||||||||||||||||||||||||
| Net interest spread | 2.67 | % | 2.54 | % | 3.33 | % | ||||||||||||||||||||||||||||||
| Net interest income and margin | $ | 21,007 | 3.94 | % | $ | 20,494 | 3.80 | % | $ | 23,426 | 4.36 | % | ||||||||||||||||||||||||
| Cost of deposits | $ | 1,932,211 | $ | 10,184 | 2.12 | % | $ | 1,925,163 | $ | 9,791 | 2.05 | % | $ | 1,952,064 | $ | 6,261 | 1.29 | % | ||||||||||||||||||
| Cost of funds | $ | 1,977,503 | $ | 10,842 | 2.21 | % | $ | 1,993,634 | $ | 10,770 | 2.17 | % | $ | 1,992,661 | $ | 6,834 | 1.38 | % | ||||||||||||||||||
| (1) | Tax-exempt debt securities yields are presented on a tax equivalent basis using a |
| (2) | Average noninterest-bearing deposits represent |
Southern California Bancorp and Subsidiary
Average Balance Sheets and Yield Analysis
(Unaudited)
| Six Months Ended | ||||||||||||||||||||||||
| June 30, 2024 | June 30, 2023 | |||||||||||||||||||||||
| Average Balance | Income/Expense | Yield/Cost | Average Balance | Income/Expense | Yield/Cost | |||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Total loans | $ | 1,896,058 | $ | 57,641 | 6.11 | % | $ | 1,897,150 | $ | 55,006 | 5.85 | % | ||||||||||||
| Taxable debt securities | 125,355 | 2,442 | 3.92 | % | 101,641 | 1,564 | 3.10 | % | ||||||||||||||||
| Tax-exempt debt securities (1) | 53,798 | 612 | 2.90 | % | 72,318 | 943 | 3.33 | % | ||||||||||||||||
| Deposits in other financial institutions | 50,737 | 1,354 | 5.37 | % | 40,205 | 994 | 4.99 | % | ||||||||||||||||
| Fed funds sold/resale agreements | 14,417 | 395 | 5.51 | % | 21,451 | 515 | 4.84 | % | ||||||||||||||||
| Restricted stock investments and other bank stock | 16,752 | 669 | 8.03 | % | 15,474 | 447 | 5.83 | % | ||||||||||||||||
| Total interest-earning assets | 2,157,117 | 63,113 | 5.88 | % | 2,148,239 | 59,469 | 5.58 | % | ||||||||||||||||
| Total noninterest-earning assets | 145,135 | 134,209 | ||||||||||||||||||||||
| Total assets | $ | 2,302,252 | $ | 2,282,448 | ||||||||||||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing NOW accounts | $ | 360,514 | $ | 4,179 | 2.33 | % | $ | 258,106 | $ | 1,595 | 1.25 | % | ||||||||||||
| Money market and savings accounts | 650,942 | 9,630 | 2.98 | % | 673,864 | 6,038 | 1.81 | % | ||||||||||||||||
| Time deposits | 257,598 | 6,166 | 4.81 | % | 163,950 | 2,506 | 3.08 | % | ||||||||||||||||
| Total interest-bearing deposits | 1,269,054 | 19,975 | 3.17 | % | 1,095,920 | 10,139 | 1.87 | % | ||||||||||||||||
| Borrowings: | ||||||||||||||||||||||||
| FHLB advances | 38,992 | 1,095 | 5.65 | % | 18,597 | 469 | 5.09 | % | ||||||||||||||||
| Subordinated debt | 17,890 | 542 | 6.09 | % | 17,795 | 543 | 6.15 | % | ||||||||||||||||
| Total borrowings | 56,882 | 1,637 | 5.79 | % | 36,392 | 1,012 | 5.61 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,325,936 | 21,612 | 3.28 | % | 1,132,312 | 11,151 | 1.99 | % | ||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||
| Noninterest-bearing deposits (2) | 659,633 | 860,054 | ||||||||||||||||||||||
| Other liabilities | 24,741 | 23,255 | ||||||||||||||||||||||
| Shareholders’ equity | 291,942 | 266,827 | ||||||||||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 2,302,252 | $ | 2,282,448 | ||||||||||||||||||||
| Net interest spread | 2.60 | % | 3.59 | % | ||||||||||||||||||||
| Net interest income and margin | $ | 41,501 | 3.87 | % | $ | 48,318 | 4.54 | % | ||||||||||||||||
| Cost of deposits | $ | 1,928,687 | $ | 19,975 | 2.08 | % | $ | 1,955,974 | $ | 10,139 | 1.05 | % | ||||||||||||
| Cost of funds | $ | 1,985,569 | $ | 21,612 | 2.19 | % | $ | 1,992,366 | $ | 11,151 | 1.13 | % | ||||||||||||
| (1) | Tax-exempt debt securities yields are presented on a tax equivalent basis using a |
| (2) | Average noninterest-bearing deposits represent |
Southern California Bancorp and Subsidiary
GAAP to Non-GAAP Reconciliation (Unaudited)
The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: (1) adjusted net income, (2) efficiency ratio, (3) adjusted efficiency ratio, (4) pre-tax pre-provision income, (5) adjusted pre-tax pre-provision income, (6) average tangible common equity, (7) adjusted return on average assets, (8) adjusted return on average equity, (9) return on average tangible common equity, (10) adjusted return on average tangible common equity, (11) tangible common equity, (12) tangible assets, (13) tangible common equity to tangible asset ratio, and (14) tangible book value per share. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures.
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| Adjusted net income | ||||||||||||||||||||
| Net income | $ | 190 | $ | 4,935 | $ | 6,718 | $ | 5,125 | $ | 14,942 | ||||||||||
| Add: After-tax merger and related expenses (1) | 412 | 547 | — | 959 | — | |||||||||||||||
| Adjusted net income (non-GAAP) | $ | 602 | $ | 5,482 | $ | 6,718 | $ | 6,084 | $ | 14,942 | ||||||||||
| Efficiency Ratio | ||||||||||||||||||||
| Noninterest expense | $ | 19,005 | $ | 14,981 | $ | 14,607 | $ | 33,986 | $ | 29,626 | ||||||||||
| Deduct: Merger and related expenses | 491 | 549 | — | 1,040 | — | |||||||||||||||
| Adjusted noninterest expense | 18,514 | 14,432 | 14,607 | 32,946 | 29,626 | |||||||||||||||
| Net interest income | 21,007 | 20,494 | 23,426 | 41,501 | 48,318 | |||||||||||||||
| Noninterest income | 1,169 | 1,413 | 1,096 | 2,582 | 2,666 | |||||||||||||||
| Total net interest income and noninterest income | $ | 22,176 | $ | 21,907 | $ | 24,522 | $ | 44,083 | $ | 50,984 | ||||||||||
| Efficiency ratio (non-GAAP) | 85.7 | % | 68.4 | % | 59.6 | % | 77.1 | % | 58.1 | % | ||||||||||
| Adjusted efficiency ratio (non-GAAP) | 83.5 | % | 65.9 | % | 59.6 | % | 74.7 | % | 58.1 | % | ||||||||||
| Pre-tax pre-provision income | ||||||||||||||||||||
| Net interest income | $ | 21,007 | $ | 20,494 | $ | 23,426 | $ | 41,501 | $ | 48,318 | ||||||||||
| Noninterest income | 1,169 | 1,413 | 1,096 | 2,582 | 2,666 | |||||||||||||||
| Total net interest income and noninterest income | 22,176 | 21,907 | 24,522 | 44,083 | 50,984 | |||||||||||||||
| Less: Noninterest expense | 19,005 | 14,981 | 14,607 | 33,986 | 29,626 | |||||||||||||||
| Pre-tax pre-provision income (non-GAAP) | 3,171 | 6,926 | 9,915 | 10,097 | 21,358 | |||||||||||||||
| Add: Merger and related expenses | 491 | 549 | — | 1,040 | — | |||||||||||||||
| Adjusted pre-tax pre-provision income (non-GAAP) | $ | 3,662 | $ | 7,475 | $ | 9,915 | $ | 11,137 | $ | 21,358 | ||||||||||
| (1) After-tax merger and related expenses are presented using a |
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
| Return on Average Assets, Equity, and Tangible Equity | ||||||||||||||||||||
| Net income | $ | 190 | $ | 4,935 | $ | 6,718 | $ | 5,125 | $ | 14,942 | ||||||||||
| Adjusted net income (non-GAAP) | $ | 602 | $ | 5,482 | $ | 6,718 | $ | 6,084 | $ | 14,942 | ||||||||||
| Average assets | $ | 2,294,678 | $ | 2,309,827 | $ | 2,286,875 | $ | 2,302,252 | $ | 2,282,448 | ||||||||||
| Average shareholders' equity | 294,121 | 289,763 | 271,487 | 291,942 | 266,827 | |||||||||||||||
| Less: Average intangible assets | 38,900 | 38,964 | 39,250 | 38,932 | 39,294 | |||||||||||||||
| Average tangible common equity (non-GAAP) | $ | 255,221 | $ | 250,799 | $ | 232,237 | $ | 253,010 | $ | 227,533 | ||||||||||
| Return on average assets | 0.03 | % | 0.86 | % | 1.18 | % | 0.45 | % | 1.32 | % | ||||||||||
| Adjusted return on average assets (non-GAAP) | 0.11 | % | 0.95 | % | 1.18 | % | 0.53 | % | 1.32 | % | ||||||||||
| Return on average equity | 0.26 | % | 6.85 | % | 9.93 | % | 3.53 | % | 11.29 | % | ||||||||||
| Adjusted return on average equity (non-GAAP) | 0.82 | % | 7.61 | % | 9.93 | % | 4.19 | % | 11.29 | % | ||||||||||
| Return on average tangible common equity (non-GAAP) | 0.30 | % | 7.91 | % | 11.60 | % | 4.07 | % | 13.24 | % | ||||||||||
| Adjusted return on average tangible common equity (non-GAAP) | 0.95 | % | 8.79 | % | 11.60 | % | 4.84 | % | 13.24 | % | ||||||||||
| June 30, 2024 | December 31, 2023 | |||||||
| ($ in thousands except share and per share data) | ||||||||
| Tangible Common Equity Ratio/Tangible Book Value Per Share | ||||||||
| Shareholders’ equity | $ | 293,219 | $ | 288,152 | ||||
| Less: Intangible assets | 38,868 | 38,998 | ||||||
| Tangible common equity (non-GAAP) | $ | 254,351 | $ | 249,154 | ||||
| Total assets | $ | 2,293,693 | $ | 2,360,252 | ||||
| Less: Intangible assets | 38,868 | 38,998 | ||||||
| Tangible assets (non-GAAP) | $ | 2,254,825 | $ | 2,321,254 | ||||
| Equity to asset ratio | 12.78 | % | 12.21 | % | ||||
| Tangible common equity to tangible asset ratio (non-GAAP) | 11.28 | % | 10.73 | % | ||||
| Book value per share | $ | 15.81 | $ | 15.69 | ||||
| Tangible book value per share (non-GAAP) | $ | 13.71 | $ | 13.56 | ||||
| Shares outstanding | 18,547,352 | 18,369,115 | ||||||
INVESTOR RELATIONS CONTACT
Kevin Mc Cabe
Bank of Southern California
kmccabe@banksocal.com
818.637.7065
FAQ
What was Southern California Bancorp's (BCAL) net income for Q2 2024?
How did BCAL's net interest margin change in Q2 2024?
What was the main factor affecting BCAL's Q2 2024 financial results?
When is BCAL's merger with California BanCorp expected to close?
How did BCAL's nonperforming assets ratio change in Q2 2024?
