Southern California Bancorp Reports Strong Organic Loan Growth for the Third Quarter of 2021

Rhea-AI Summary

Southern California Bancorp (OTC Pink: BCAL) reported a 45.9% increase in net income for Q3 2021, reaching $3.5 million. Net organic loans rose 11.8% to $1.1 billion. Total assets grew to $1.8 billion, with deposits at $1.6 billion. The bank successfully completed the acquisition of Bank of Santa Clarita and opened new branches in Los Angeles County, enhancing its market presence. Despite a slight decline in net interest margin to 3.67%, the bank remains well-capitalized and managed to maintain low nonperforming assets at 0.04% of total assets.

Positive

• Net income increased to $3.5 million, up 45.9% from the prior quarter.
• Net organic loans grew by $110.8 million, or 11.8%, to $1.1 billion.
• Total deposits reached $1.6 billion, reflecting year-over-year growth of 31.1%.
• Successful acquisition of Bank of Santa Clarita expands market presence.
• The bank maintained a nonperforming assets ratio of just 0.04%.

Negative

• Total loans decreased to $1.2 billion, down from $1.3 billion the prior quarter.
• Noninterest expense rose to $12.7 million, up from $9.0 million YoY, due to strategic expansion costs.
• Net interest margin decreased slightly to 3.67% from 3.72% in the previous quarter.

SAN DIEGO--(BUSINESS WIRE)-- 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 third quarter of 2021.

Third Quarter 2021 Highlights

• Net income available to common shareholders increased to $3.5 million, up $1.1 million, or 45.9% from $2.4 million in the prior quarter
• Net organic loans (non-PPP) increased to $1.1 billion, up $110.8 million, or 11.8%, from June 30, 2021, and up $223.9 million or 27.1% from December 31, 2020
• PPP loan portfolio balance of $181.4 million, down from $346.6 million at June 30, 2021
• Total assets of $1.8 billion, up $6.1 million, or 0.3%, from June 30, 2021, and up $205.1 million, or 13.0%, from December 31, 2020
• Total deposits of $1.6 billion, up $4.9 million, or 0.3% (after the sale of three branches with combined deposits of $82.0 million), from June 30, 2021, and up $371.6 million, or 31.1%, from December 31, 2020
• Noninterest-bearing demand deposits were 48.6% of total deposits, up from 47.9% at June 30, 2021
• Net interest margin of 3.67% in the third quarter, compared to 3.72% in the prior quarter; average yield on non-PPP loans of 4.60%
• Nonperforming assets to total assets ratio remains at 0.04%, the same as the prior quarter
• Received requisite approvals from shareholders of Southern California Bancorp and Bank of Santa Clarita, and requisite regulatory approvals, for acquisition of Bank of Santa Clarita, which will expand footprint into northern Los Angeles County and create commercial bank with approximately $2.2 billion in pro forma assets
• Completed sale of three branches to align footprint to support a commercial banking strategy
• Continued status as “well-capitalized,” the highest regulatory capital category

“I am very pleased to report strong third quarter non-PPP loan growth, which increased $111 million, or 12%, from the second quarter of 2021, net of payoffs of $22 million,” said David Rainer, Chairman, CEO and President of Southern California Bancorp and Bank of Southern California, N.A. “As of the end of the third quarter, our net organic year-to-date non-PPP loan growth was $224 million, or 27%, with much of this growth coming from the new branches we have opened in our expanded Los Angeles County footprint. We believe this strong loan growth is evidence of the traction we are gaining from the execution of our strategic repositioning of the Bank to a relationship-based, commercial banking model with branches in high growth areas.

“Deposits remained steady at $1.6 billion in the third quarter, even as we completed the sale of three branches with combined deposits of $82 million in September. Noninterest-bearing deposits of $760 million at September 30, 2021, represented 48.6% of total deposits and our cost of deposits decreased to 0.11% in the third quarter, down from 0.15% in the second quarter of 2021. Average deposits per branch grew to $130 million at September 30, 2021, up from $100 million at December 31, 2020, and on a pro forma basis, combined with Bank of Santa Clarita, are expected to be approximately $150 million per branch.

“In the third quarter we received approval for the acquisition of Bank of Santa Clarita from the shareholders of Southern California Bancorp and Bank of Santa Clarita, as well as regulatory approval of the transaction, which was closed on October 1, 2021. The integration is progressing smoothly, with both teams excited about the opportunities it presents, and we are very pleased to have former Bank of Santa Clarita Chairman Frank Di Tomaso join our Boards of Directors.

“Additionally, in the third quarter we established a Private Banking Group, with the appointment of Nicole Swain as President. Ms. Swain is well known and widely respected in the Southern California banking industry, and we are very pleased to have her join us.”

Third Quarter Operating Results

Net Income

Net income for the third quarter of 2021 was $3.5 million or $0.25 per fully diluted share, compared with net income of $2.2 million or $0.23 per fully diluted share for the third quarter of 2020. The increase in net income from the prior year was primarily attributable to a $2.6 million increase in net interest income and a $963,000 increase in noninterest income. Noninterest expense increased to $12.7 million in the third quarter of 2021, compared with $9.0 million in the prior year, largely related to the Company’s recent strategic expansion into Los Angeles County. The Company took no loan loss provision in the third quarter of 2021, compared with a $2.0 million loan loss provision in the prior year.

Net income for the third quarter of 2021 was $3.5 million or $0.25 per fully diluted share, compared with net income of $2.4 million or $0.17 per fully diluted share in the second quarter of 2021. The increase in net income in the third quarter of 2021 was related to a $616,000 increase in net interest income in the third quarter of 2021 compared with the second quarter of 2021, and a decrease in noninterest expense in the third quarter of 2021 of $2.1 million compared with the second quarter of 2021, during which quarter the Company had nonrecurring compensation expenses of $3.1 million, related to a preexisting employment contract.

The Company’s income tax expense was $1.5 million for the third quarter of 2021, compared with a tax benefit of $51,000 in the second quarter of 2021, which was related to the acceleration and vesting of certain restricted share awards and the exercise of certain stock options. The Company’s income tax would have been approximately $740,000 higher in the second quarter without those benefits.

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2021 was $16.0 million, an increase of $2.6 million, or 19.6%, from the third quarter of 2020. The increase was primarily due to an increase in average earning assets related to the Company’s expansion into Los Angeles County and increased PPP fee income due to the accelerated pace of PPP loan forgiveness. Comparisons to the prior year also benefit from a reduction in interest expense of $872,000 resulting in cost of funding decreasing to 0.18% from 0.45% in the prior year.

Net interest margin for the third quarter of 2021 was 3.67%, compared with 3.60% in the same quarter of the prior year. Third quarter loan yields and yield on average earning assets were 5.29% and 3.84%, respectively, compared with 4.31% and 4.03%, respectively, in the prior year.

Net interest income for the third quarter of 2021 was $16.0 million, an increase of $616,000 from the second quarter of 2021. The increase was primarily due to organic loan growth and increased PPP net fee income of $4.5 million in the third quarter compared with $3.2 million in the previous quarter, related to the accelerated pace of PPP loan forgiveness and an additional day of interest income in the third quarter.

Interest expense in the third quarter of 2021 was $752,000, a decrease of $115,000 or 13.3% from interest expense of $867,000 in the second quarter of 2021. The decrease in the third quarter was primarily related to a reduction the cost of deposits to 0.11%, down from 0.15% in the second quarter.

Net interest margin for the third quarter of 2021 was 3.67%, compared to 3.72% in the second quarter of 2021. The decrease in net interest margin in the third quarter of 2021 was largely due to the decrease in the yield on average earning assets to 3.84%, from 3.92% in the prior quarter.

The yield on average loans in the third quarter of 2021, excluding PPP loans, was 4.60%, a decrease of 40 basis points from 5.00% in the prior quarter. The decrease in non-PPP loan yields was primarily due to nonrecurring income of $437,000 related to elevated prepayment penalties and the fair value accretion of an acquired loan in the second quarter of 2021. Average PPP loan yields increased to 7.88% in the third quarter, compared to 3.83% in the prior quarter. The increase in PPP loan yields was primarily due to the increase in fee income due to the accelerated pace of loan forgiveness.

Cost of funding for the third quarter of 2021 was 0.18%, down from 0.22% in the previous quarter. A detailed comparison of interest income, yields, costs, and net interest income is included in the table below:

		Q3 2021						Q2 2021
Interest Income on:
Total Loans		$	16,373,790		5.29	%		$	15,956,930		4.61	%
Loans excl PPP			11,210,529		4.60	%			11,586,549		5.00	%
PPP Loans			5,163,261		7.88	%			4,370,381		3.83	%
Investments			245,527		2.79	%			262,758		3.05	%
Fed Funds & Int Earning			159,972		0.13	%			58,653		0.10	%
Total Interest Income			16,779,289		3.84	%			16,278,341		3.92	%
Int Exp on Deposits			451,181		0.11	%			566,579		0.15	%
Int Exp on Borrowings			300,705		5.86	%			300,692		4.93	%
Total Interest Expense			751,886		0.18	%			867,271		0.22	%
Net Interest Income			16,027,403		3.67	%		$	15,411,070		3.72	%

Noninterest Income

Total noninterest income for the third quarter of 2021 was $1.7 million, an increase of $963,000 compared with $723,000 in the third quarter of the prior year. The increase in the third quarter of 2021 was largely related to the gain on sale of $1.0 million for three branches the Company sold on September 24, 2021, for which there was no corresponding transaction in the third quarter of 2020.

Total noninterest income in the third quarter of 2021 decreased by $63,000 compared with the second quarter of 2021. As noted above, in the third quarter of 2021 the Company sold three branches for $1.0 million for which there was no corresponding transaction in the second quarter of 2021; however, in the second quarter of 2021 the Company recorded a gain on sale of an acquired loan of $920,000. In the third quarter of 2021 the Company recorded income on bank owned life insurance of $165,000, compared to $300,000 in the second quarter of 2021.

Balance Sheet

Assets

Total assets at September 30, 2021, were $1.8 billion, an increase of $205.1 million or 13.0% from December 31, 2020. The increase in total assets was primarily related to a $371.6 million increase in deposits, offset by a $179.3 million decrease in other borrowings, primarily PPPLF.

Loans

Total loans were $1.2 billion at September 30, 2021, compared with $1.3 billion at June 30, 2021, and $1.4 billion at September 30, 2020. The Company’s non-PPP loan portfolio had net organic growth of $110.8 million or 11.8% in the third quarter of 2021, after payoffs and paydowns of $21.6 million, and ended the quarter at $1.1 billion.

Total commercial and industrial loans decreased by $139.8 million during the third quarter of 2021, of which $165.2 million was a reduction in total PPP loans. Loans secured by real estate grew by $84.9 million in the third quarter of 2021 compared with the prior quarter.

From April 2020 to May 2021 the Company originated a total of $799.1 million in PPP loans; at September 30, 2021, the remaining PPP loans outstanding balance was $181.4 million.

Deposits

Total deposits at September 30, 2021, were $1.6 billion, an increase of $4.9 million from the end of the prior quarter. On September 24, 2021, the Company sold three branches with combined deposits of $82.0 million. Total deposits of $1.6 billion increased $428.3 million from the third quarter of 2020. Noninterest-bearing deposits at September 30, 2021 were $760.5 million, or 48.6% of total deposits, compared to $747.7 million, or 47.9% of total deposits, at June 30, 2021, and $503.9 million, or 44.3% of total deposits, at September 30, 2020.

Asset Quality

Total non-performing assets were $0.7 million or 0.04% of total assets at September 30, 2021, the same as the prior quarter.

During the third quarter of 2021, the Company recorded net recoveries of $75,000, compared with net charge-offs of $4,000 in third quarter of 2020 and $20,000 in net recoveries in the second quarter of 2021.

The Company recorded no loan loss provision in the first three quarters of 2021, after recording $4.6 million in provisions for the full year of 2020. The allowance for loan and lease losses (ALLL) was $10.4 million at the end of the third quarter of 2021. The Company continues to monitor macroeconomic variables related to COVID-19 and reasonably believes it is adequately provisioned for the current environment. Management will continue to monitor and manage the loan portfolio to minimize potential future losses.

Relevant reserve ratios compared to the prior and year-ago quarter are as follows:

	Q3 2021	Q2 2021	Q3 2020
ALLL to Total Loans	0.84%	0.80%	0.76%
ALLL and Loan Fair Value Credit Marks (LFVCM) to Total Loans	1.00%	0.99%	1.14%
ALLL and LFVCM to Total Loans, excluding PPP Loans	1.18%	1.36%	1.88%

Liquidity and Capital

With 31.1% growth in total deposits year-to-date 2021, and a strong cash balance from the quick pace of forgiveness of PPP loans, the Bank has ample liquidity resources to meet its customers’ needs. Additionally, the Bank has borrowing capacity of $170 million from the FHLB, with no outstanding borrowings at September 30, 2021.

The significant production in PPP loans over the past 18 months was funded through a combination of increased DDA accounts, generally associated directly with the PPP Loans, borrowings under PPPLF, and other sources. At September 30, 2021, the Bank’s PPP loan portfolio was entirely funded by Bank deposits.

PPP loans are considered zero risk-weighted assets and, as such, have helped maintain the Bank’s leverage capital ratio and total risk-based capital ratio at 9.58% and 16.02%, respectively, for the quarter ended September 30, 2021.

ABOUT BANK OF SOUTHERN CALIFORNIA AND SOUTHERN CALIFORNIA BANCORP

Southern California Bancorp (OTC Pink: 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 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, Bank of Southern California, N.A. offers a range of financial products and services to individuals, professionals, and small- to medium-sized businesses through its 12 branch offices serving San Diego, Orange, Los Angeles, and Ventura counties, as well as the Inland Empire. The Bank's solution-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.

Southern California Bancorp’s common stock is traded on the OTC Markets Group Inc. Pink Open Market under the symbol “BCAL.” For more information, please visit banksocal.com or call (844) BNK-SOCAL.

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. Any statements about future operating results, such as those concerning accretion and dilution to Southern California Bancorp's earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

Southern California Bancorp
Balance Sheets
(Unaudited)
	Sept 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sept 30, 2020
ASSETS
Cash and due from banks	$	12,166,356		$	15,126,065		$	17,641,725		$	11,950,639		$	16,008,641
Fed funds & int-bearing balances		435,475,700			382,300,000			140,615,764			238,866,116			105,543,557
Total cash and cash equivalents		447,642,056			397,426,065			158,257,489			250,816,755			121,552,198
Debt securities (AFS)		24,905,267			21,214,779			24,248,794			24,702,467			24,767,969
FRB, FHLB and other equity stock		11,270,350			11,177,350			10,143,550			8,872,900			8,872,900
Construction & land development		34,438,305			29,559,914			30,459,337			31,375,236			43,101,171
1-4 Family Residential		108,632,444			93,871,005			106,082,307			103,367,391			107,724,352
Multifamily		142,220,706			92,938,965			108,601,017			111,815,776			113,159,342
Other commercial real estate		529,062,592			513,061,625			443,612,515			404,856,966			403,795,137
Commercial & industrial		413,758,869			553,516,111			723,443,758			577,608,374			689,687,091
Other consumer		4,528,805			4,148,740			4,181,084			4,857,563			6,010,280
Total loans		1,232,641,721			1,287,096,360			1,416,380,018			1,233,881,306			1,363,477,373
Allowance for loan losses		(10,364,693	)		(10,289,921	)		(10,270,115	)		(10,255,005	)		(10,295,855	)
Total loans and leases, net		1,222,277,028			1,276,806,439			1,406,109,903			1,223,626,301			1,353,181,518
Premises, equipment, and ROU, net		15,237,117			17,707,289			17,758,109			15,051,487			13,257,434
Other real estate owned		0			0			0			0			0
Goodwill and core deposit intangible		21,334,833			21,422,121			21,510,561			21,599,001			21,479,639
Bank owned life insurance		27,973,099			17,808,119			18,093,069			17,990,765			17,883,455
Accrued interest and other assets		13,546,434			14,518,617			17,047,915			16,388,640			14,291,215
Total Assets	$	1,784,186,184		$	1,778,080,779		$	1,673,169,390		$	1,579,048,316		$	1,575,286,328
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand	$	760,492,115		$	747,738,727		$	703,061,127		$	533,923,009		$	503,929,563
Interest bearing checking		136,851,252			129,392,533			119,366,773			83,566,875			96,527,122
Money market and savings		593,255,255			586,849,245			520,487,029			458,529,872			410,847,164
Time deposits		75,761,818			97,525,691			110,458,582			118,719,534			126,736,990
Total deposits		1,566,360,440			1,561,506,196			1,453,373,511			1,194,739,290			1,138,040,839
Other borrowings		20,377,355			20,345,918			30,314,482			199,648,070			297,357,238
Accrued interest and other liabilities		19,812,618			22,656,173			18,415,653			15,775,916			11,967,887
Total liabilities		1,606,550,413			1,604,508,287			1,502,103,646			1,410,163,276			1,447,365,964
Shareholders' Equity:
Common stock and APIC		148,384,701			147,727,489			147,690,044			146,895,943			103,932,450
Retained earnings		29,027,837			25,525,772			23,125,833			21,693,933			23,691,383
Accum. other comprehensive income		223,233			319,231			249,867			295,164			296,531
Total shareholders' equity		177,635,771			173,572,492			171,065,744			168,885,040			127,920,364
Total Liabilities and Shareholders' Equity	$	1,784,186,184		$	1,778,080,779		$	1,673,169,390		$	1,579,048,316		$	1,575,286,328

Southern California Bancorp
Income Statements - Quarterly
(Unaudited)
	Sept 30, 2021		Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sept 30, 2020
INTEREST INCOME
Loans, including fees	$	16,373,790	$	15,956,930		$	13,314,474		$	14,255,623		$	14,772,183
Debt securities and equity stock		245,527		262,758			252,345			222,737			226,211
Fed funds & int-bearing balances		159,972		58,653			34,605			41,094			26,303
Total interest income		16,779,289		16,278,341			13,601,424			14,519,454			15,024,697
INTEREST EXPENSE
Deposits		451,181		566,579			582,931			726,717			930,474
Other borrowings		300,705		300,692			379,181			648,616			693,487
Total interest expense		751,886		867,271			962,112			1,375,333			1,623,961
Net interest income		16,027,403		15,411,070			12,639,312			13,144,121			13,400,736
Provision for loan losses		0		0			0			0			2,000,000
Net interest income after provision		16,027,403		15,411,070			12,639,312			13,144,121			11,400,736
NONINTEREST INCOME
Service charges, fees and other income		503,839		481,151			448,919			421,803			364,797
Income on bank owned life insurance		164,979		299,068			102,304			107,310			108,682
Gains on loan sales		0		919,722			0			0			0
OREO, investment, other gains (losses)		1,017,273		54,362			(3,522	)		(92,856	)		250,009
Total noninterest income		1,686,091		1,754,303			547,701			436,257			723,488
NONINTEREST EXPENSE
Salaries and benefits		7,751,397		10,596,884			7,377,063			11,120,598			4,151,278
Occupancy and equipment		1,323,747		1,096,564			1,115,406			1,048,852			1,071,270
Strategic and other non-operating expense		614,695		838,062			664,957			2,369,649			1,610,824
Other expense		2,989,590		2,284,924			2,019,687			1,894,352			2,135,533
Total noninterest expense		12,679,429		14,816,434			11,177,113			16,433,451			8,968,905
Income before income tax expense		5,034,065		2,348,939			2,009,900			(2,853,073	)		3,155,319
Income tax expense (benefit)		1,532,000		(51,000	)		578,000			(855,623	)		920,000
Net Income (Loss)	$	3,502,065	$	2,399,939		$	1,431,900		($	1,997,450	)	$	2,235,319
Diluted earnings (loss) per share	$	0.25	$	0.17		$	0.10		($	0.21	)	$	0.23
Average shares outstanding		13,509,081		13,289,796			13,272,693			9,661,860			9,429,538
Operating profit (loss) (before non-operating items) 1	$	4,631,487	$	2,212,917		$	2,678,379		($	390,568	)	$	6,516,134

1 Op profit (before non-operating items) = Pre-tax, pre-provision earnings, before noninterest income gains (losses) and non-operating expense.

Southern California Bancorp
Income Statements - Year-to-Date
(Unaudited)
	Sept 30, 2021		Sept 30, 2020		Sept 30, 2019		Sept 30, 2018
INTEREST INCOME
Loans, including fees	$	45,645,194	$	36,221,159	$	26,598,782	$	17,797,187
Investment securities		760,630		636,725		781,147		658,439
Fed funds & int-bearing balances		253,230		437,630		896,774		711,919
Total interest income		46,659,054		37,295,514		28,276,703		19,167,545
INTEREST EXPENSE
Deposits		1,600,691		3,153,416		4,650,872		2,278,661
Other borrowings		980,578		1,341,372		507,768		19,693
Total interest expense		2,581,269		4,494,788		5,158,640		2,298,354
Net interest income		44,077,785		32,800,726		23,118,063		16,869,191
Provision for loan losses		0		4,552,000		800,000		1,150,000
Net interest income after provision for loan losses		44,077,785		28,248,726		22,318,063		15,719,191
NONINTEREST INCOME
Service charges, fees and other income		1,433,909		1,033,109		1,091,900		1,004,992
Income on bank owned life insurance		566,351		253,470		178,029		170,248
Gains on loan sales		919,722		0		198,422		1,028,284
OREO, investment, other gains (losses)		1,068,113		573,872		165,021		73,631
Total noninterest income		3,988,095		1,860,451		1,633,372		2,277,155
NONINTEREST EXPENSE
Salaries and benefits		25,725,344		10,570,013		9,817,582		6,965,973
Occupancy and equipment		3,535,717		2,736,094		2,319,835		1,597,263
Strategic and other non-operating expense		2,117,714		2,248,404		191,898		1,646,924
Other expense		7,294,201		4,933,351		4,283,811		3,081,745
Total noninterest expense		38,672,976		20,487,862		16,613,126		13,291,905
Income before income tax expense		9,392,904		9,621,315		7,338,309		4,704,441
Income tax expense		2,059,000		2,901,377		2,201,000		1,451,000
Net Income	$	7,333,904	$	6,719,938	$	5,137,309	$	3,253,441
Diluted earnings per share	$	0.53	$	0.71	$	0.60	$	0.47
Average shares outstanding		13,357,190		9,420,362		8,410,105		6,654,150
Operating profit (before non-operating items) 1	$	9,522,783	$	15,847,847	$	7,966,764	$	6,399,450

1 Op profit (before non-operating items) = Pre-tax, pre-provision earnings, before non interest income gains (losses) and non-operating expense.

Southern California Bancorp
Quarterly and YTD Financial Highlights
(Unaudited)		Quarterly											9 Months YTD
		2021		2021		2021		2020		2020
($$ in thousands except per share data)		3rd Qtr		2nd Qtr		1st Qtr		4th Qtr		3rd Qtr			2021		2020
EARNINGS
Net interest income	$	16,027		15,411		12,639		13,144		13,401			44,078		32,801
Provision for loan losses	$	0		0		0		0		2,000			0		4,552
Noninterest income	$	1,686		1,754		548		436		723			3,988		1,860
Noninterest expense	$	12,679		14,816		11,177		16,433		8,969			38,673		20,488
Income tax expense (benefit)	$	1,532		(51	)	578		(856	)	920			2,059		2,901
Net income (loss)	$	3,502		2,400		1,432		(1,997	)	2,235			7,334		6,720
Basic earnings (loss) per share	$	0.26		0.18		0.11		(0.21	)	0.24			0.55		0.71
Diluted earnings (loss) per share	$	0.25		0.17		0.10		(0.21	)	0.23			0.71		0.60
Average shares outstanding		13,509,081		13,289,796		13,272,693		9,661,860		9,429,538			13,357,190		9,420,362
Ending shares outstanding		13,509,081		13,509,081		13,278,005		13,267,380		9,455,065			13,509,081		9,455,065
PERFORMANCE RATIOS
Return on average assets		0.76	%	0.55	%	0.36	%	-0.50	%	0.57	%		0.57	%	0.72	%
Return on average common equity		7.92	%	5.54	%	3.41	%	-6.06	%	7.00	%		5.66	%	7.21	%
Yield on loans		5.29	%	4.61	%	4.08	%	4.36	%	4.31	%		4.65	%	4.61	%
Yield on earning assets		3.84	%	3.92	%	3.63	%	3.83	%	4.03	%		3.80	%	4.25	%
Cost of deposits		0.11	%	0.15	%	0.18	%	0.25	%	0.32	%		0.14	%	0.45	%
Cost of funding		0.18	%	0.22	%	0.28	%	0.38	%	0.45	%		0.23	%	0.55	%
Net interest margin		3.67	%	3.72	%	3.38	%	3.47	%	3.60	%		3.59	%	3.73	%
Efficiency ratio		71.6	%	86.3	%	84.8	%	121.0	%	63.5	%		80.5	%	59.1	%
CAPITAL
Tangible equity to tangible assets		8.87	%	8.66	%	9.05	%	9.46	%	6.85	%		8.87	%	6.85	%
Book value (BV) per common share	$	13.15		12.85		12.88		12.73		13.53			13.15		13.53
Tangible BV per common share	$	11.57		11.26		11.26		11.10		11.26			11.57		11.26
ASSET QUALITY
Net loan charge-offs (recoveries)	$	(75	)	(20	)	(15	)	41		4			(110	)	(380	)
Allowance for loan losses (ALLL)	$	10,365		10,290		10,270		10,255		10,296			10,365		10,296
ALLL to total loans		0.84	%	0.80	%	0.73	%	0.83	%	0.76	%		0.84	%	0.76	%
Loan fair value credit marks (LFVCM)	$	1,998		2,510		3,872		4,333		5,205			1,998		5,205
ALLL & LFVCM to total loans		1.00	%	0.99	%	1.00	%	1.18	%	1.14	%		1.00	%	1.14	%
ALLL & LFVCM to total loans (excl PPP)		1.18	%	1.36	%	1.57	%	1.76	%	1.88	%		1.88	%	1.88	%
Nonperforming loans	$	666		697		808		896		1,125			666		1,125
Other real estate owned	$	0		0		0		0		0			0		0
Nonperforming assets to total assets		0.04	%	0.04	%	0.05	%	0.06	%	0.07	%		0.04	%	0.07	%
END OF PERIOD BALANCES
Total loans	$	1,232,642		1,287,096		1,416,380		1,233,881		1,363,477			1,232,642		1,363,477
Total assets	$	1,784,186		1,778,081		1,673,169		1,579,048		1,575,286			1,784,186		1,575,286
Deposits	$	1,566,360		1,561,506		1,453,374		1,194,739		1,138,041			1,566,360		1,138,041
Loans to deposits		78.7	%	82.4	%	97.5	%	103.3	%	119.8	%		78.7	%	119.8	%
Shareholders' equity	$	177,636		173,572		171,066		168,885		127,920			177,636		127,920
Full-time equivalent employees		195		184		169		147		118			195		118
AVERAGE BALANCES (QTRLY) | | (YTD)
Total loans	$	1,226,853		1,387,131		1,321,964		1,297,794		1,358,291			1,311,634		1,046,427
Earning assets	$	1,734,397		1,663,735		1,518,715		1,503,951		1,477,910			1,639,677		1,170,342
Total assets (net of AFS valuation)	$	1,823,112		1,744,886		1,600,686		1,578,118		1,556,364			1,723,710		1,237,289
Deposits	$	1,608,407		1,529,016		1,313,485		1,162,979		1,142,686			1,484,716		939,071
Shareholders' equity	$	175,364		173,644		170,362		130,818		126,670			173,124		124,222

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211028005379/en/

INVESTOR RELATIONS CONTACT

Kevin McCabe

Bank of Southern California

kmccabe@banksocal.com

818.637.7065

Source: Southern California Bancorp

FAQ

What were Southern California Bancorp's financial results for Q3 2021?

Southern California Bancorp reported a net income of $3.5 million for Q3 2021, a 45.9% increase from the previous quarter.

How much did net organic loans grow for Southern California Bancorp in Q3 2021?

Net organic loans increased by $110.8 million, or 11.8%, to $1.1 billion in Q3 2021.

What is the current nonperforming assets ratio for Southern California Bancorp?

As of Q3 2021, the nonperforming assets ratio remained at 0.04% of total assets.

What impact did the acquisition of Bank of Santa Clarita have on Southern California Bancorp?

The acquisition expanded the company’s footprint into northern Los Angeles County, increasing its pro forma assets to approximately $2.2 billion.

How did total deposits change for Southern California Bancorp in Q3 2021?

Total deposits grew to $1.6 billion, a 31.1% increase from December 31, 2020.