California BanCorp Reports Financial Results for the Fourth Quarter and Twelve Months Ended December 31, 2020
California BanCorp (NASDAQ: CALB) reported a fourth-quarter net income of $1.8 million, a 261% increase from the previous quarter and a 209% rise year-over-year. For the full year ending December 31, 2020, net income was $4.3 million, down 39% from 2019. Diluted EPS reached $0.22 for Q4, up from $0.06 QoQ and $0.07 YoY. Total loans increased by 1% to $1.37 billion, with a 28% growth rate excluding PPP loans. Total deposits surged by 7% to $1.53 billion. Despite the pandemic's challenges, the bank's asset quality remained strong, with non-performing assets at just 0.01% of total assets.
- Net income for Q4 increased by 261% QoQ and 209% YoY.
- Total loans increased by 1% to $1.37 billion; 28% growth excluding PPP loans.
- Total deposits rose by 7% to $1.53 billion.
- Non-performing assets decreased to 0.01% of total assets.
- Full year net income decreased by 39% to $4.3 million.
- Diluted EPS for 2020 dropped to $0.53 from $0.86 in 2019.
OAKLAND, Calif., Jan. 28, 2021 (GLOBE NEWSWIRE) -- California BanCorp (NASDAQ: CALB), whose subsidiary is California Bank of Commerce, announced today its financial results for the fourth quarter and twelve months ended December 31, 2020.
The Company reported net income of
Diluted per share earnings of
“Our fourth quarter performance reflects continued progress in executing on our growth strategies and the resulting impact on our level of profitability,” said Steven Shelton, President and CEO of California BanCorp. “Excluding PPP loans, our total loans increased at an annualized rate of
Financial Highlights:
Profitability - three months ended December 31, 2020 compared to September 30, 2020
- Net income of
$1.8 million and$0.22 per diluted share, compared to$495,000 and$0.06 per share, respectively. - Revenue of
$13.7 million increased$1.5 million , or12% , compared to$12.2 million for the third quarter of 2020. - Provision for loan losses decreased
$150,000 due to improved credit quality and a continued qualitative reserve assessment in response to general macroeconomic changes related to COVID-19 as it pertains to our overall loan portfolio. - Non-interest expense, excluding capitalized loan origination costs, of
$11.7 million remained consistent with the third quarter of 2020 level of$11.5 million .
Profitability - twelve months ended December 31, 2020 compared to December 31, 2019
- Net income of
$4.3 million and$0.53 per diluted share, compared to$7.0 million and$0.86 per share, respectively. - Revenue of
$48.9 million increased$3.7 million , or8% , compared to$45.2 million in the prior year. - Provision for loan losses increased
$2.6 million primarily due to a charge-off in the second quarter of 2020 related to a legacy problem loan and funding a qualitative reserve in response to general macroeconomic changes related to COVID-19. - Non-interest expense increased by
$4.6 million (net of$4.3 million of deferred loan origination costs primarily related to PPP loans and other loan programs to support our clients) as a result of salaries and benefits and other direct expenses pertaining to the strategic expansion of our business.
Financial Position – December 31, 2020 compared to September 30, 2020
- Total assets decreased by
$67.0 million , or3% to$1.91 billion primarily as the result of our repayment of$158.7 million in borrowings under the Federal Reserve PPPLF, partially offset by deposit growth. - Total gross loans increased by
$13.9 million , or1% to$1.37 billion . Excluding the impact of PPP loans forgiven by the SBA, total gross loans increased during the fourth quarter by$69.6 million , or7% , to$1.06 billion . - Total deposits increased by
$95.0 million , or7% to$1.53 billion . - Capital ratios, including the impact of PPP loan activity, remain healthy with a tier-one leverage ratio of
7.49% , tier I capital ratio of10.11% and total risk-based capital ratio of13.22% .
Business Impact of COVID-19:
In response to the continued evolving COVID-19 pandemic, the Company has focused first on the well-being of its people, customers and communities. Preventative health measures were put in place including elimination of business related travel requirements, mandatory work from home for all employees able to do so, social distancing precautions for all employees in the office and customers visiting branches, and preventative cleaning at offices and branches.
The Company has also focused on business continuity measures including monitoring potential business interruptions, making improvements to our remote working technology, and conducting regular discussions with our technology vendors to ensure full functionality throughout this event.
The Company has taken measures to support customers affected by the pandemic and to maintain strong asset quality, including:
- Implementing a broad-based risk management strategy to manage credit segments on a real-time basis;
- Monitoring portfolio risk and related mitigation strategies by segments;
- Helping business clients receive PPP and other loan products under the CARES Act; following the launch of PPP in early April 2020, we processed
100% of the approximately 730 applications received and all of the applications we submitted to the SBA received approval, resulting in approximately$362.0 million in loan fundings. At December 31, 2020, approximately$55.7 million of these balances have been granted forgiveness by the SBA. - Offering flexible repayment options to current clients and a streamlined loan modification process, when appropriate. Beginning in March 2020, we launched a proactive deferral program that resulted in modification of 383 loans with an aggregate balance of approximately
$323.9 million . At December 31, 2020, only one loan remained on deferral status.
Net Interest Income and Margin:
Net interest income for the quarter ended December 31, 2020 was
Net interest income for the twelve months ended December 31, 2020 was
The Company’s net interest margin for the quarter was
Non-Interest Income:
The Company’s non-interest income for the quarters ended December 31, 2020, September 30, 2020, and December 31, 2019 was
For the twelve months ended December 31, 2020, non-interest income of
Net interest income and non-interest income comprised total revenue of
Non-Interest Expense:
The Company’s non-interest expense for the quarters ended December 31, 2020, September 30, 2020, and December 31, 2019 was
Non-interest expenses of
The Company’s efficiency ratio, the ratio of non-interest expense to revenues, was
Balance Sheet:
Total assets of
Total loans increased by
Year-over-year loan growth was primarily due to the origination of
Total deposits increased by
Compared to the same period last year, deposit growth was primarily concentrated in noninterest-bearing demand and money market deposits as the result of funding PPP loans and organic growth. Non-interest bearing deposits, primarily commercial business operating accounts, represented
Asset Quality:
The provision for credit losses decreased to
Non-performing assets (“NPAs”) to total assets of
The allowance for loan losses increased by
Capital Adequacy:
At December 31, 2020, shareholders’ equity totaled
“While we are mindful of the impact of the ongoing pandemic on our broader geographic markets, our level of problem loans continues to be extremely low, which reflects the strength of our commercial borrowers and our conservative underwriting criteria,” said Thomas A. Sa, Senior Executive Vice President, Chief Financial Officer and Chief Operating Officer of California BanCorp. “Our non-performing assets declined to just
About California BanCorp:
California BanCorp, the parent company for California Bank of Commerce, offers a broad range of commercial banking services to closely held businesses and professionals located throughout Northern California. The Company’s common stock trades on the Nasdaq Global Select marketplace under the symbol CALB. For more information on California BanCorp, call us at (510) 457-3751, or visit us at www.californiabankofcommerce.com.
Contacts:
| Steven E. Shelton, (510) 457-3751 | Thomas A. Sa, (510) 457-3775 |
| President and Chief Executive Officer | Senior Executive Vice President |
| seshelton@bankcbc.com | Chief Financial Officer and Chief Operating Officer |
| tsa@bankcbc.com |
Use of Non-GAAP Financial Information:
This press release contains both financial measures based on GAAP and non-GAAP. Non-GAAP financial measures are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Forward-Looking Information:
Statements in this news release regarding expectations and beliefs about future financial performance and financial condition, as well as trends in the Company’s business and markets are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "outlook," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." The forward-looking statements in this news release are based on current information and on assumptions that the Company makes about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond the Company’s control. As a result of those risks and uncertainties, the Company’s actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause the Company to make changes to future plans. Those risks and uncertainties include, but are not limited to, the risk of incurring loan losses, which is an inherent risk of the banking business; the risk that the Company will not be able to continue its internal growth rate; the risk that the United States economy will experience slowed growth or recession or will be adversely affected by domestic or international economic conditions and risks associated with the Federal Reserve Board taking actions with respect to interest rates, any of which could adversely affect, among other things, the values of real estate collateral supporting many of the Company’s loans, interest income and interest rate margins and, therefore, the Company’s future operating results; risks associated with changes in income tax laws and regulations; and risks associated with seeking new client relationships and maintaining existing client relationships. Readers of this news release are encouraged to review the additional information regarding these and other risks and uncertainties to which our business is subject that are contained in our Annual Report on Form 10-K for the year ended December 31, 2019 which is on file with the Securities and Exchange Commission (the “SEC”). Additional information will be set forth in our Annual Report on Form 10-K for the year ended December 31, 2020, which we expect to file with the SEC during the first quarter of 2021, and readers of this release are urged to review the additional information that will be contained in that report.
The COVID-19 pandemic has created economic and financial disruptions that have adversely affected, and may continue to adversely affect, our business, operations, financial performance and prospects. Even after the COVID-19 pandemic subsides, it is possible that the U.S. and other major economies experience or continue to experience a prolonged recession, which could materially and adversely affect our business, operations, financial performance and prospects. Statements about the effects of the COVID-19 pandemic on our business, operations, financial performance and prospects may constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties and us.
Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today's date, or to make predictions based solely on historical financial performance. The Company disclaims any obligation to update forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise, except as may be required by.
FINANCIAL TABLES FOLLOW
| CALIFORNIA BANCORP AND SUBSIDIARY | |||||||||||||||||||||||||||
| SELECTED FINANCIAL INFORMATION (UNAUDITED) - PROFITABILITY | |||||||||||||||||||||||||||
| (Dollars in Thousands, Except Per Share Data) | |||||||||||||||||||||||||||
| Change | Change | ||||||||||||||||||||||||||
| QUARTERLY HIGHLIGHTS: | Q4 2020 | Q3 2020 | $ | % | Q4 2019 | $ | % | ||||||||||||||||||||
| Interest income | $ | 14,748 | $ | 13,188 | $ | 1,560 | 12 | % | $ | 12,806 | $ | 1,942 | 15 | % | |||||||||||||
| Interest expense | 1,985 | 2,000 | (15 | ) | -1 | % | 2,222 | (237 | ) | -11 | % | ||||||||||||||||
| Net interest income | 12,763 | 11,188 | 1,575 | 14 | % | 10,584 | 2,179 | 21 | % | ||||||||||||||||||
| Provision for credit losses | 700 | 850 | (150 | ) | -18 | % | 1,000 | (300 | ) | -30 | % | ||||||||||||||||
| Net interest income after provision | |||||||||||||||||||||||||||
| provision for credit losses | 12,063 | 10,338 | 1,725 | 17 | % | 9,584 | 2,479 | 26 | % | ||||||||||||||||||
| Non-interest income | 916 | 1,028 | (112 | ) | -11 | % | 1,146 | (230 | ) | -20 | % | ||||||||||||||||
| Operating expenses | 10,416 | 10,545 | (129 | ) | -1 | % | 9,825 | 591 | 6 | % | |||||||||||||||||
| Income before income taxes | 2,563 | 821 | 1,742 | 212 | % | 905 | 1,658 | 183 | % | ||||||||||||||||||
| Income tax expense | 778 | 326 | 452 | 139 | % | 327 | 451 | 138 | % | ||||||||||||||||||
| Net income | $ | 1,785 | $ | 495 | $ | 1,290 | 261 | % | $ | 578 | $ | 1,207 | 209 | % | |||||||||||||
| Diluted earnings per share | $ | 0.22 | $ | 0.06 | $ | 0.16 | 267 | % | $ | 0.07 | $ | 0.15 | 214 | % | |||||||||||||
| Net interest margin | 2.66 | % | 2.41 | % | +25 Basis Points | 3.90 | % | -124 Basis Points | |||||||||||||||||||
| Efficiency ratio | 76.15 | % | 86.32 | % | -110 Basis Points | 83.76 | % | -76 Basis Points | |||||||||||||||||||
| Change | |||||||||||||||||||||||||||
| ANNUAL HIGHLIGHTS: | FY 2020 | FY 2019 | $ | % | |||||||||||||||||||||||
| Interest income | $ | 53,019 | $ | 49,078 | $ | 3,941 | 8 | % | |||||||||||||||||||
| Interest expense | 8,102 | 8,140 | (38 | ) | 0 | % | |||||||||||||||||||||
| Net interest income | 44,917 | 40,938 | 3,979 | 10 | % | ||||||||||||||||||||||
| Provision for credit losses | 4,880 | 2,326 | 2,554 | 110 | % | ||||||||||||||||||||||
| Net interest income after provision | |||||||||||||||||||||||||||
| for credit losses | 40,037 | 38,612 | 1,425 | 4 | % | ||||||||||||||||||||||
| Non-interest income | 4,012 | 4,248 | (236 | ) | -6 | % | |||||||||||||||||||||
| Operating expenses | 37,809 | 33,223 | 4,586 | 14 | % | ||||||||||||||||||||||
| Income before income taxes | 6,240 | 9,637 | (3,397 | ) | -35 | % | |||||||||||||||||||||
| Income tax expense | 1,937 | 2,636 | (699 | ) | -27 | % | |||||||||||||||||||||
| Net income | $ | 4,303 | $ | 7,001 | $ | (2,698 | ) | -39 | % | ||||||||||||||||||
| Diluted earnings per share | $ | 0.53 | $ | 0.86 | $ | (0.33 | ) | -38 | % | ||||||||||||||||||
| Net interest margin | 2.76 | % | 4.12 | % | -136 Basis Points | ||||||||||||||||||||||
| Efficiency ratio | 77.27 | % | 73.52 | % | +375 Basis Points | ||||||||||||||||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | ||||||||||||||||||||||||||
| SELECTED FINANCIAL INFORMATION (UNAUDITED) - FINANCIAL POSITION | ||||||||||||||||||||||||||
| (Dollars in Thousands, Except Per Share Data) | ||||||||||||||||||||||||||
| Change | Change | |||||||||||||||||||||||||
| PERIOD-END HIGHLIGHTS: | Q4 2020 | Q3 2020 | $ | % | Q4 2019 | $ | % | |||||||||||||||||||
| Total assets | $ | 1,905,779 | $ | 1,972,751 | $ | (66,972 | ) | -3 | % | $ | 1,152,034 | $ | 753,745 | 65 | % | |||||||||||
| Gross loans | 1,369,070 | 1,355,164 | 13,906 | 1 | % | 949,652 | 419,418 | 44 | % | |||||||||||||||||
| Deposits | 1,532,206 | 1,437,232 | 94,974 | 7 | % | 988,236 | 543,970 | 55 | % | |||||||||||||||||
| Tangible equity | 128,856 | 127,031 | 1,825 | 1 | % | 122,661 | 6,195 | 5 | % | |||||||||||||||||
| Tangible book value per share | $ | 15.77 | $ | 15.59 | $ | 0.18 | 1 | % | $ | 15.16 | $ | 0.61 | 4 | % | ||||||||||||
| Tangible equity / total assets | 6.76 | % | 6.44 | % | +32 Basis Points | 10.65 | % | -389 Basis Points | ||||||||||||||||||
| Gross loans / total deposits | 89.35 | % | 94.29 | % | -494 Basis Points | 96.10 | % | -6.75 Basis Points | ||||||||||||||||||
| Noninterest-bearing deposits / | ||||||||||||||||||||||||||
| total deposits | 43.93 | % | 44.09 | % | -16 Basis Points | 39.19 | % | +474 Basis Points | ||||||||||||||||||
| QUARTERLY AVERAGE | Change | Change | ||||||||||||||||||||||||
| HIGHLIGHTS: | Q4 2020 | Q3 2020 | $ | % | Q4 2019 | $ | % | |||||||||||||||||||
| Total assets | $ | 1,993,661 | $ | 1,923,001 | $ | 70,660 | 4 | % | $ | 1,156,611 | $ | 837,050 | 72 | % | ||||||||||||
| Total earning assets | 1,910,656 | 1,843,072 | 67,584 | 4 | % | 1,077,218 | 833,438 | 77 | % | |||||||||||||||||
| Gross loans | 1,375,664 | 1,313,082 | 62,582 | 5 | % | 937,973 | 437,691 | 47 | % | |||||||||||||||||
| Deposits | 1,516,441 | 1,397,280 | 119,161 | 9 | % | 994,122 | 522,319 | 53 | % | |||||||||||||||||
| Tangible equity | 127,981 | 126,670 | 1,311 | 1 | % | 122,684 | 5,297 | 4 | % | |||||||||||||||||
| Tangible equity / total assets | 6.42 | % | 6.59 | % | -19 Basis Points | 10.61 | % | -419 Basis Points | ||||||||||||||||||
| Gross loans / total deposits | 90.72 | % | 93.97 | % | -325 Basis Points | 94.35 | % | -363 Basis Points | ||||||||||||||||||
| Noninterest-bearing deposits / | ||||||||||||||||||||||||||
| total deposits | 44.68 | % | 43.60 | % | +108 Basis Points | 38.47 | % | +621 Basis Points | ||||||||||||||||||
| ANNUAL AVERAGE | Change | |||||||||||||||||||||||||
| HIGHLIGHTS: | FY 2020 | FY 2019 | $ | % | ||||||||||||||||||||||
| Total assets | $ | 1,713,416 | $ | 1,064,452 | $ | 648,964 | 61 | % | ||||||||||||||||||
| Total earning assets | 1,629,615 | 992,680 | 636,935 | 64 | % | |||||||||||||||||||||
| Gross loans | 1,219,324 | 903,922 | 315,402 | 35 | % | |||||||||||||||||||||
| Deposits | 1,308,564 | 893,893 | 414,671 | 46 | % | |||||||||||||||||||||
| Tangible equity | 126,343 | 119,176 | 7,167 | 6 | % | |||||||||||||||||||||
| Tangible equity / total assets | 7.37 | % | 11.20 | % | -383 Basis Points | |||||||||||||||||||||
| Gross loans / total deposits | 93.18 | % | 101.12 | % | -794 Basis Points | |||||||||||||||||||||
| Noninterest-bearing deposits / | ||||||||||||||||||||||||||
| total deposits | 43.31 | % | 38.34 | % | +497 Basis Points | |||||||||||||||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | ||||||||||||||||||||
| SELECTED INTERIM FINANCIAL INFORMATION (UNAUDITED) - ASSET QUALITY | ||||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||
| ALLOWANCE FOR CREDIT LOSSES: | 12-31-20 | 09-30-20 | 06-30-20 | 03-31-20 | 12-31-19 | |||||||||||||||
| Balance, beginning of period | $ | 13,385 | $ | 12,524 | $ | 11,565 | $ | 11,075 | $ | 10,413 | ||||||||||
| Provision for credit losses, quarterly | 700 | 850 | 2,930 | 400 | 1,000 | |||||||||||||||
| Charge-offs, quarterly | - | - | (1,976 | ) | - | (348 | ) | |||||||||||||
| Recoveries, quarterly | 26 | 11 | 5 | 90 | 10 | |||||||||||||||
| Balance, end of period | $ | 14,111 | $ | 13,385 | $ | 12,524 | $ | 11,565 | $ | 11,075 | ||||||||||
| NONPERFORMING ASSETS: | 12-31-20 | 09-30-20 | 06-30-20 | 03-31-20 | 12-31-19 | |||||||||||||||
| Loans accounted for on a non-accrual basis | $ | 234 | $ | 580 | $ | 1,243 | $ | 2,650 | $ | 2,753 | ||||||||||
| Loans with principal or interest contractually | ||||||||||||||||||||
| past due 90 days or more and still accruing | ||||||||||||||||||||
| interest | - | - | - | - | - | |||||||||||||||
| Nonperforming loans | $ | 234 | $ | 580 | $ | 1,243 | $ | 2,650 | $ | 2,753 | ||||||||||
| Other real estate owned | - | - | - | - | - | |||||||||||||||
| Nonperforming assets | $ | 234 | $ | 580 | $ | 1,243 | $ | 2,650 | $ | 2,753 | ||||||||||
| Loans restructured and in compliance with | ||||||||||||||||||||
| modified terms | - | - | - | 624 | 646 | |||||||||||||||
| Nonperforming assets and restructured loans | $ | 234 | $ | 580 | $ | 1,243 | $ | 3,274 | $ | 3,399 | ||||||||||
| Nonperforming loans by asset type: | ||||||||||||||||||||
| Commercial | - | 346 | 1,008 | 2,306 | 2,409 | |||||||||||||||
| Real estate other | - | - | - | - | - | |||||||||||||||
| Real estate construction and land | - | - | - | - | - | |||||||||||||||
| SBA | 234 | 234 | 235 | 344 | 344 | |||||||||||||||
| Other | - | - | - | - | - | |||||||||||||||
| Nonperforming loans | $ | 234 | $ | 580 | $ | 1,243 | $ | 2,650 | $ | 2,753 | ||||||||||
| ASSET QUALITY: | 12-31-20 | 09-30-20 | 06-30-20 | 03-31-20 | 12-31-19 | |||||||||||||||
| Allowance for credit losses / gross loans | 1.03 | % | 0.99 | % | 0.96 | % | 1.19 | % | 1.17 | % | ||||||||||
| Allowance for credit losses / nonperforming loans | 6030.34 | % | 2307.76 | % | 1007.56 | % | 436.42 | % | 402.29 | % | ||||||||||
| Nonperforming assets / total assets | 0.01 | % | 0.03 | % | 0.07 | % | 0.22 | % | 0.24 | % | ||||||||||
| Nonperforming loans / gross loans | 0.02 | % | 0.04 | % | 0.10 | % | 0.27 | % | 0.29 | % | ||||||||||
| Net quarterly charge-offs / gross loans | 0.00 | % | 0.00 | % | 0.15 | % | - | 0.04 | % | |||||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | ||||||||||||||||||||
| INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||||||
| (Dollars in Thousands, Except Per Share Data) | ||||||||||||||||||||
| Three months ended | Twelve months ended | |||||||||||||||||||
| 12-31-20 | 09-30-20 | 12-31-19 | 12-31-20 | 12-31-19 | ||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||
| Loans | $ | 14,305 | $ | 12,849 | $ | 12,132 | $ | 51,401 | $ | 46,915 | ||||||||||
| Federal funds sold | 131 | 117 | 443 | 685 | 999 | |||||||||||||||
| Investment securities | 312 | 222 | 231 | 933 | 1,164 | |||||||||||||||
| Total interest income | 14,748 | 13,188 | 12,806 | 53,019 | 49,078 | |||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||
| Deposits | 1,359 | 1,467 | 2,096 | 6,341 | 7,209 | |||||||||||||||
| Other | 626 | 533 | 126 | 1,761 | 931 | |||||||||||||||
| Total interest expense | 1,985 | 2,000 | 2,222 | 8,102 | 8,140 | |||||||||||||||
| Net interest income | 12,763 | 11,188 | 10,584 | 44,917 | 40,938 | |||||||||||||||
| Provision for credit losses | 700 | 850 | 1,000 | 4,880 | 2,326 | |||||||||||||||
| Net interest income after provision | ||||||||||||||||||||
| for credit losses | 12,063 | 10,338 | 9,584 | 40,037 | 38,612 | |||||||||||||||
| NON-INTEREST INCOME | ||||||||||||||||||||
| Service charges and other fees | 662 | 779 | 852 | 2,949 | 3,003 | |||||||||||||||
| Gain on sale of SBA loans | - | - | 17 | - | 253 | |||||||||||||||
| Other non-interest income | 254 | 249 | 277 | 1,063 | 992 | |||||||||||||||
| Total non-interest income | 916 | 1,028 | 1,146 | 4,012 | 4,248 | |||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||
| Salaries and benefits | 7,072 | 6,452 | 5,769 | 22,122 | 20,674 | |||||||||||||||
| Premises and equipment | 1,125 | 1,359 | 1,159 | 4,755 | 3,502 | |||||||||||||||
| Other | 2,219 | 2,734 | 2,897 | 10,932 | 9,047 | |||||||||||||||
| Total operating expenses | 10,416 | 10,545 | 9,825 | 37,809 | 33,223 | |||||||||||||||
| Income before income taxes | 2,563 | 821 | 905 | 6,240 | 9,637 | |||||||||||||||
| Income taxes | 778 | 326 | 327 | 1,937 | 2,636 | |||||||||||||||
| NET INCOME | $ | 1,785 | $ | 495 | $ | 578 | $ | 4,303 | $ | 7,001 | ||||||||||
| EARNINGS PER SHARE | ||||||||||||||||||||
| Basic earnings per share | $ | 0.22 | $ | 0.06 | $ | 0.07 | $ | 0.53 | $ | 0.87 | ||||||||||
| Diluted earnings per share | $ | 0.22 | $ | 0.06 | $ | 0.07 | $ | 0.53 | $ | 0.86 | ||||||||||
| Average common shares outstanding | 8,152,052 | 8,141,807 | 8,074,285 | 8,131,325 | 8,048,793 | |||||||||||||||
| Average common and equivalent | ||||||||||||||||||||
| shares outstanding | 8,203,931 | 8,169,334 | 8,162,585 | 8,169,082 | 8,132,093 | |||||||||||||||
| PERFORMANCE MEASURES | ||||||||||||||||||||
| Return on average assets | 0.36 | % | 0.10 | % | 0.20 | % | 0.25 | % | 0.66 | % | ||||||||||
| Return on average equity | 5.25 | % | 1.47 | % | 1.76 | % | 3.22 | % | 5.52 | % | ||||||||||
| Return on average tangible equity | 5.55 | % | 1.55 | % | 1.87 | % | 3.41 | % | 5.87 | % | ||||||||||
| Efficiency ratio | 76.15 | % | 86.32 | % | 83.76 | % | 77.27 | % | 73.52 | % | ||||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | ||||||||||||||||||||
| INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||
| 12-31-20 | 09-30-02 | 06-30-20 | 03-31-20 | 12-31-19 | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 22,485 | $ | 23,339 | $ | 22,246 | $ | 22,792 | $ | 19,579 | ||||||||||
| Federal funds sold | 396,032 | 480,555 | 485,823 | 117,818 | 94,763 | |||||||||||||||
| Investment securities | 55,093 | 50,906 | 39,723 | 34,344 | 28,555 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial | 414,548 | 379,400 | 365,881 | 416,308 | 389,746 | |||||||||||||||
| Real estate other | 550,690 | 539,541 | 508,916 | 496,765 | 502,929 | |||||||||||||||
| Real estate construction and land | 37,193 | 36,596 | 49,524 | 41,697 | 42,519 | |||||||||||||||
| SBA | 317,564 | 373,921 | 373,429 | 12,797 | 12,830 | |||||||||||||||
| Other | 49,075 | 25,706 | 1,731 | 1,378 | 1,628 | |||||||||||||||
| Loans, gross | 1,369,070 | 1,355,164 | 1,299,481 | 968,945 | 949,652 | |||||||||||||||
| Unearned fee income | 523 | (1,054 | ) | (1,569 | ) | 2,902 | 2,555 | |||||||||||||
| Allowance for credit losses | (14,111 | ) | (13,385 | ) | (12,524 | ) | (11,565 | ) | (11,075 | ) | ||||||||||
| Loans, net | 1,355,482 | 1,340,725 | 1,285,388 | 960,282 | 941,132 | |||||||||||||||
| Premises and equipment, net | 5,778 | 5,933 | 4,709 | 3,427 | 3,668 | |||||||||||||||
| Bank owned life insurance | 23,718 | 23,577 | 23,434 | 23,284 | 22,316 | |||||||||||||||
| Goodwill and core deposit intangible | 7,554 | 7,564 | 7,575 | 7,585 | 7,595 | |||||||||||||||
| Accrued interest receivable and other assets | 39,637 | 40,152 | 41,528 | 37,950 | 34,426 | |||||||||||||||
| Total assets | $ | 1,905,779 | $ | 1,972,751 | $ | 1,910,426 | $ | 1,207,482 | $ | 1,152,034 | ||||||||||
| LIABILITIES | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Demand noninterest-bearing | $ | 673,100 | $ | 633,726 | $ | 643,354 | $ | 403,248 | $ | 387,267 | ||||||||||
| Demand interest-bearing | 34,869 | 32,680 | 28,769 | 21,083 | 25,178 | |||||||||||||||
| Money market and savings | 623,603 | 582,953 | 549,084 | 459,712 | 455,436 | |||||||||||||||
| Time | 200,634 | 187,873 | 164,495 | 144,818 | 120,355 | |||||||||||||||
| Total deposits | 1,532,206 | 1,437,232 | 1,385,702 | 1,028,861 | 988,236 | |||||||||||||||
| Junior subordinated debt securities | 24,994 | 24,990 | 4,986 | 4,981 | 4,977 | |||||||||||||||
| Other borrowings | 189,043 | 352,703 | 364,703 | 22,000 | 10,000 | |||||||||||||||
| Accrued interest payable and other liabilities | 23,126 | 23,231 | 21,370 | 20,447 | 18,565 | |||||||||||||||
| Total liabilities | 1,769,369 | 1,838,156 | 1,776,761 | 1,076,289 | 1,021,778 | |||||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||||||||||
| Common stock | 107,947 | 107,776 | 107,241 | 106,790 | 106,427 | |||||||||||||||
| Retained earnings | 27,822 | 26,036 | 25,541 | 23,991 | 23,518 | |||||||||||||||
| Accumulated other comprehensive (loss) | 641 | 783 | 883 | 412 | 311 | |||||||||||||||
| Total shareholders' equity | 136,410 | 134,595 | 133,665 | 131,193 | 130,256 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,905,779 | $ | 1,972,751 | $ | 1,910,426 | $ | 1,207,482 | $ | 1,152,034 | ||||||||||
| CAPITAL ADEQUACY | ||||||||||||||||||||
| Tier I leverage ratio | 7.49 | % | 7.84 | % | 8.13 | % | 10.66 | % | 10.64 | % | ||||||||||
| Tier I risk-based capital ratio | 10.11 | % | 10.57 | % | 11.27 | % | 10.62 | % | 10.58 | % | ||||||||||
| Total risk-based capital ratio | 13.22 | % | 13.80 | % | 12.87 | % | 12.07 | % | 11.99 | % | ||||||||||
| Total equity/ total assets | 7.16 | % | 6.82 | % | 7.00 | % | 10.87 | % | 11.31 | % | ||||||||||
| Book value per share | $ | 16.69 | $ | 16.52 | $ | 16.43 | $ | 16.15 | $ | 16.09 | ||||||||||
| Common shares outstanding | 8,171,734 | 8,149,678 | 8,133,457 | 8,121,848 | 8,092,966 | |||||||||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | ||||||||||||||||||
| INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED) | ||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||
| Three months ended December 31, | Three months ended September 30, | |||||||||||||||||
| 2020 | 2020 | |||||||||||||||||
| Yields | Interest | Yields | Interest | |||||||||||||||
| Average | or | Income/ | Average | or | Income/ | |||||||||||||
| Balance | Rates | Expense | Balance | Rates | Expense | |||||||||||||
| ASSETS | ||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||
| Loans (1) | $ | 1,375,664 | 4.14 | % | $ | 14,305 | $ | 1,313,092 | 3.89 | % | $ | 12,849 | ||||||
| Federal funds sold | 480,790 | 0.11 | % | 131 | 490,409 | 0.09 | % | 117 | ||||||||||
| Investment securities | 54,202 | 2.29 | % | 312 | 39,571 | 2.23 | % | 222 | ||||||||||
| Total interest earning assets | 1,910,656 | 3.07 | % | 14,748 | 1,843,072 | 2.85 | % | 13,188 | ||||||||||
| Noninterest-earning assets: | ||||||||||||||||||
| Cash and due from banks | 20,616 | 19,789 | ||||||||||||||||
| All other assets (2) | 62,389 | 60,140 | ||||||||||||||||
| TOTAL | $ | 1,993,661 | $ | 1,923,001 | ||||||||||||||
| LIABILITIES AND | ||||||||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Deposits: | ||||||||||||||||||
| Demand | $ | 33,674 | 0.13 | % | $ | 11 | $ | 30,877 | 0.14 | % | $ | 11 | ||||||
| Money market and savings | 604,578 | 0.74 | % | 1,118 | 582,694 | 0.81 | % | 1,190 | ||||||||||
| Time | 200,606 | 0.46 | % | 230 | 174,436 | 0.61 | % | 266 | ||||||||||
| Other | 318,570 | 0.78 | % | 626 | 369,764 | 0.57 | % | 533 | ||||||||||
| Total interest-bearing liabilities | 1,157,428 | 0.68 | % | 1,985 | 1,157,771 | 0.69 | % | 2,000 | ||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||
| Demand deposits | 677,583 | 609,273 | ||||||||||||||||
| Accrued expenses and | ||||||||||||||||||
| other liabilities | 23,466 | 21,717 | ||||||||||||||||
| Shareholders' equity | 135,184 | 134,240 | ||||||||||||||||
| TOTAL | $ | 1,993,661 | $ | 1,923,001 | ||||||||||||||
| Net interest income and margin (3) | 2.66 | % | $ | 12,763 | 2.41 | % | $ | 11,188 | ||||||||||
| (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees of | ||||||||||||||||||
| (2) Other noninterest-earning assets includes the allowance for credit losses of | ||||||||||||||||||
| (3) Net interest margin is net interest income divided by total interest-earning assets. | ||||||||||||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | ||||||||||||||||||
| INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED) | ||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||
| Three months ended December 31, | ||||||||||||||||||
| 2020 | 2019 | |||||||||||||||||
| Yields | Interest | Yields | Interest | |||||||||||||||
| Average | or | Income/ | Average | or | Income/ | |||||||||||||
| Balance | Rates | Expense | Balance | Rates | Expense | |||||||||||||
| ASSETS | ||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||
| Loans (1) | $ | 1,375,664 | 4.14 | % | $ | 14,305 | $ | 937,973 | 5.13 | % | $ | 12,132 | ||||||
| Federal funds sold | 480,790 | 0.11 | % | 131 | 107,089 | 1.64 | % | 443 | ||||||||||
| Investment securities | 54,202 | 2.29 | % | 312 | 32,156 | 2.85 | % | 231 | ||||||||||
| Total interest earning assets | 1,910,656 | 3.07 | % | 14,748 | 1,077,218 | 4.72 | % | 12,806 | ||||||||||
| Noninterest-earning assets: | ||||||||||||||||||
| Cash and due from banks | 20,616 | 22,680 | ||||||||||||||||
| All other assets (2) | 62,389 | 56,713 | ||||||||||||||||
| TOTAL | $ | 1,993,661 | $ | 1,156,611 | ||||||||||||||
| LIABILITIES AND | ||||||||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Deposits: | ||||||||||||||||||
| Demand | $ | 33,674 | 0.13 | % | $ | 11 | $ | 23,563 | 0.10 | % | $ | 6 | ||||||
| Money market and savings | 604,578 | 0.74 | % | 1,118 | 459,697 | 1.25 | % | 1,444 | ||||||||||
| Time | 200,606 | 0.46 | % | 230 | 128,436 | 2.00 | % | 646 | ||||||||||
| Other | 318,570 | 0.78 | % | 626 | 14,976 | 3.34 | % | 126 | ||||||||||
| Total interest-bearing liabilities | 1,157,428 | 0.68 | % | 1,985 | 626,672 | 1.41 | % | 2,222 | ||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||
| Demand deposits | 677,583 | 382,426 | ||||||||||||||||
| Accrued expenses and | ||||||||||||||||||
| other liabilities | 23,466 | 17,289 | ||||||||||||||||
| Shareholders' equity | 135,184 | 130,224 | ||||||||||||||||
| TOTAL | $ | 1,993,661 | $ | 1,156,611 | ||||||||||||||
| Net interest income and margin (3) | 2.66 | % | $ | 12,763 | 3.90 | % | $ | 10,584 | ||||||||||
| (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees (costs) of | ||||||||||||||||||
| (2) Other noninterest-earning assets includes the allowance for credit losses of 13.4 million and | ||||||||||||||||||
| (3) Net interest margin is net interest income divided by total interest-earning assets. | ||||||||||||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | ||||||||||||||||||
| INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED) | ||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||
| Twelve months ended December 31, | ||||||||||||||||||
| 2020 | 2019 | |||||||||||||||||
| Yields | Interest | Yields | Interest | |||||||||||||||
| Average | or | Income/ | Average | or | Income/ | |||||||||||||
| Balance | Rates | Expense | Balance | Rates | Expense | |||||||||||||
| ASSETS | ||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||
| Loans (1) | $ | 1,219,324 | 4.22 | % | $ | 51,401 | $ | 903,922 | 5.19 | % | $ | 46,915 | ||||||
| Federal funds sold | 371,476 | 0.18 | % | 685 | 50,891 | 1.96 | % | 999 | ||||||||||
| Investment securities | 38,815 | 2.40 | % | 933 | 37,867 | 3.07 | % | 1,164 | ||||||||||
| Total interest earning assets | 1,629,615 | 3.25 | % | 53,019 | 992,680 | 4.94 | % | 49,078 | ||||||||||
| Noninterest-earning assets: | ||||||||||||||||||
| Cash and due from banks | 20,810 | 19,663 | ||||||||||||||||
| All other assets (2) | 62,991 | 52,109 | ||||||||||||||||
| TOTAL | $ | 1,713,416 | $ | 1,064,452 | ||||||||||||||
| LIABILITIES AND | ||||||||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Deposits: | ||||||||||||||||||
| Demand | $ | 28,559 | 0.13 | % | $ | 36 | $ | 24,451 | 0.10 | % | $ | 24 | ||||||
| Money market and savings | 547,592 | 0.88 | % | 4,795 | 411,745 | 1.17 | % | 4,806 | ||||||||||
| Time | 165,630 | 0.91 | % | 1,510 | 114,977 | 2.07 | % | 2,379 | ||||||||||
| Other | 249,474 | 0.71 | % | 1,761 | 29,717 | 3.13 | % | 931 | ||||||||||
| Total interest-bearing liabilities | 991,255 | 0.82 | % | 8,102 | 580,890 | 1.40 | % | 8,140 | ||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||
| Demand deposits | 566,783 | 342,720 | ||||||||||||||||
| Accrued expenses and | ||||||||||||||||||
| other liabilities | 21,843 | 14,125 | ||||||||||||||||
| Shareholders' equity | 133,535 | 126,717 | ||||||||||||||||
| TOTAL | $ | 1,713,416 | $ | 1,064,452 | ||||||||||||||
| Net interest income and margin (3) | 2.76 | % | $ | 44,917 | 4.12 | % | $ | 40,938 | ||||||||||
| (1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of yields. Interest income on loans includes amortization of deferred loan fees (costs) of | ||||||||||||||||||
| (2) Other noninterest-earning assets includes the allowance for credit losses of | ||||||||||||||||||
| (3) Net interest margin is net interest income divided by total interest-earning assets. | ||||||||||||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | |||||||||||||||
| INTERIM CONSOLIDATED NON GAAP DATA (UNAUDITED) | |||||||||||||||
| (Dollars in Thousands) | |||||||||||||||
| REVENUE: | 12-31-20 | 09-30-20 | 06-30-20 | 03-31-20 | 12-31-19 | ||||||||||
| Net interest income | $ | 12,763 | $ | 11,188 | $ | 10,785 | $ | 10,182 | $ | 10,584 | |||||
| Non-interest income | 916 | 1,028 | 777 | 1,290 | 1,146 | ||||||||||
| Total revenue | $ | 13,679 | $ | 12,216 | $ | 11,562 | $ | 11,472 | $ | 11,730 | |||||
| Deferred | Deferred | ||||||||||||||
| IMPACT OF PPP ACTIVITY REFLECTED IN | Amortization of Deferred Balance | Balance at | Balance | ||||||||||||
| NET INTEREST INCOME: | 12-31-20 | 09-30-20 | 06-30-20 | Origination | Remaining | ||||||||||
| PPP fees | $ | 2,083 | $ | 1,114 | $ | 1,099 | $ | 9,086 | $ | 4,790 | |||||
| PPP capitalized loan origination costs | 527 | 266 | 253 | 2,451 | 1,405 | ||||||||||
| Net PPP fees | $ | 1,556 | $ | 848 | $ | 846 | $ | 6,635 | $ | 3,385 | |||||
| OPERATING EXPENSES: | 12-31-20 | 09-30-20 | 06-30-20 | 03-31-20 | 12-31-19 | ||||||||||
| Total operating expenses | $ | 10,416 | $ | 10,545 | $ | 6,440 | $ | 10,447 | $ | 9,825 | |||||
| Capitalized loan origination costs | 1,277 | 986 | 4,797 | 912 | 1,136 | ||||||||||
| Total operating expenses, before capitalization | |||||||||||||||
| of deferred loan origination costs | $ | 11,693 | $ | 11,531 | $ | 11,237 | $ | 11,359 | $ | 10,961 | |||||
| GROSS LOANS: | 12-31-20 | 09-30-20 | 06-30-20 | 03-31-20 | 12-31-19 | ||||||||||
| Gross loans | $ | 1,369,070 | $ | 1,355,164 | $ | 1,299,481 | $ | 968,945 | $ | 949,652 | |||||
| PPP loans | 306,373 | 362,088 | 361,632 | - | - | ||||||||||
| Gross loans, excluding PPP loans | $ | 1,062,697 | $ | 993,076 | $ | 937,849 | $ | 968,945 | $ | 949,652 | |||||
FAQ
What were California BanCorp's financial results for Q4 2020?
How did California BanCorp's net income change in 2020?
What is the diluted EPS for California BanCorp for the fourth quarter of 2020?
How have total loans and deposits changed for California BanCorp?
What is the status of California BanCorp's asset quality?
