California BanCorp Reports Financial Results for the Fourth Quarter and Twelve Months Ended December 31, 2021

Rhea-AI Summary

California BanCorp (CALB) reported a net income of $3.2 million for Q4 2021, marking a 78% increase from Q4 2020. For the year, net income reached $13.4 million, up 211% year-over-year. Diluted EPS stood at $0.38 for Q4 and $1.61 for the year, reflecting strong performance despite a 2% decrease in total assets to $2.02 billion. Loan growth was a highlight, with a 33% annualized increase in new loans. The company anticipates continued growth in 2022, supported by healthy markets and increasing loan demand.

Positive

• Net income of $13.4 million for 2021, up 211% from 2020.
• Diluted EPS increased to $1.61 from $0.53 in the previous year.
• 33% annualized loan growth in Q4 2021.
• Total assets grew by 6% year-over-year despite a 2% quarterly decrease.

Negative

• Total deposits decreased by 4% to $1.68 billion in Q4 2021.
• Revenue of $15.0 million in Q4 2021 decreased by $182,000 from Q3 2021.

OAKLAND, Calif., Jan. 27, 2022 (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, 2021.

The Company reported net income of $3.2 million for the fourth quarter of 2021, which was consistent with the third quarter of 2021 and represented an increase of $1.4 million, or 78%, compared to $1.8 million for the fourth quarter of 2020. For the twelve months ended December 31, 2021, net income was $13.4 million which represented an increase of $9.1 million, or 211%, compared to $4.3 million for the same period in 2020.

Diluted earnings per share of $0.38 for the fourth quarter of 2021 compared to $0.39 for the third quarter of 2021 and $0.22 for the fourth quarter of 2020. For the twelve months ended December 31, 2021, diluted earnings per share of $1.61 compared to $0.53 for the same period in 2020.

“Our fourth quarter performance completed a year in which we delivered on all of the goals we set to continue enhancing the value of our franchise,” Steven Shelton, President and CEO of California BanCorp. “Our successful new business development efforts enabled us to surpass $2 billion in total assets during 2021 despite the runoff of PPP loans. Our balance sheet growth produced a strong increase in revenue that enabled us to continue realizing more operating leverage, improve our level of profitability, and grow our book value per share by 10% in 2021. During the fourth quarter, we had 33% annualized loan growth, excluding PPP loans, which was our highest level of growth in 2021 and reflects our continued success in taking market share in our targeted industries and asset classes. We believe we are very well positioned to deliver another strong performance in 2022. Our markets are healthy and showing increasing loan demand, our business development efforts continue to generate consistent growth in loans and low-cost deposits, and the composition of our balance sheet with a high percentage of noninterest-bearing deposits, variable rate loans, and cash and cash equivalents positions us well to benefit from higher interest rates. We believe that the combination of our continued balance sheet growth, asset sensitivity, and improving operating efficiencies should result in further improvement in our core earnings power and profitability in 2022.”

“We continue to strike an effective balance between new business development and prudent risk management, as we are generating strong balance sheet growth while maintaining outstanding asset quality and our targeted level of interest rate sensitivity,” said Thomas A. Sa, Senior Executive Vice President, Chief Financial Officer and Chief Operating Officer of California BanCorp. “As we start 2022, we continue to have strong capital and liquidity positions to support the profitable growth of the Company.”

Financial Highlights:

Profitability - three months ended December 31, 2021 compared to September 30, 2021

• Net income of $3.2 million and $0.38 per diluted share, compared to $3.2 million and $0.39 per diluted share, respectively.
• Revenue of $15.0 million decreased $182,000, or 1%, compared to $15.1 million for the third quarter of 2021.
• Net fees from Paycheck Protection Program (“PPP”) loans contributed $708,000 to net interest income compared to $1.6 million for the third quarter of 2021.
• Provision for loan losses of $504,000 increased $204,000, or 68%, primarily as a result of growth in the loan portfolio.
• Non-interest expense, excluding capitalized loan origination costs, of $11.6 million decreased $100,000, or 1%, compared to $11.7 million for the third quarter of 2021 primarily due to lower headcount during the quarter resulting from the impact of the current competitive labor market.
  

Profitability - twelve months ended December 31, 2021 compared to December 31, 2020

• Net income of $13.4 million and $1.61 per diluted share, compared to $4.3 million and $0.53 per diluted share, respectively.
• Revenue of $58.9 million increased $10.0 million, or 20%, compared to $48.9 million in the prior year.
• Net fees from PPP loans contributed $5.5 million to net interest income compared to $3.3 million in the prior year.
• Provision for loan losses decreased $4.9 million primarily due to a charge-off recognized in the second quarter of 2020 related to a legacy problem loan as well as our continued assessment of qualitative reserves regarding the general macroeconomic changes related to COVID-19 as it pertains to our overall loan portfolio.
• Non-interest expense, excluding capitalized loan origination costs, of $46.0 million compared to $45.7 million for the same period in the prior year.
  

Financial Position – December 31, 2021 compared to September 30, 2021

• Total assets decreased by $34.1 million, or 2%, to $2.02 billion.
• Total gross loans increased by $74.7 million, or 6% to $1.38 billion. Excluding the impact of PPP loans forgiven by the SBA, total gross loans increased during the fourth quarter by $99.6 million, or 8%, to $1.30 billion.
• Total deposits decreased by $61.9 million, or 4%, to $1.68 billion. Average deposits increased $41.1 million, or 2%, to $1.76 billion.
• Borrowing arrangements increased by $21.9 million, or 16%, to $160.4 million.
• Capital ratios remained strong with a Tier 1 leverage ratio of 7.23%, Tier 1 capital ratio of 8.62% and total risk-based capital ratio of 12.75%.
  

Net Interest Income and Margin:

Net interest income for the quarter ended December 31, 2021 was $14.0 million, an increase of $126,000, or 1%, over $13.8 million for the three months ended September 30, 2021, and an increase of $1.2 million, or 9%, over $12.8 million for the quarter ended December 31, 2020. The increase in net interest income compared to the fourth quarter of 2020 was primarily attributable to a higher yield on loans as a result of new loan originations replacing the PPP loans that were forgiven during the current quarter, combined with growth in other earning assets due to excess liquidity.

Net interest income for the twelve months ended December 31, 2021 was $54.7 million, an increase of $9.8 million, or 22% over $44.9 million for the twelve months ended December 31, 2020. The increase in net interest income was primarily attributable to an increase in interest income as the result of growth in earning assets and amortization of fees received on PPP loans offset, in part, by a decline in short-term interest rates and higher liquidity.

The Company’s net interest margin for the fourth quarter of 2021 was 2.81% compared to 2.87% for the third quarter of 2021 and 2.66% for the fourth quarter of 2020. The decrease in margin compared to the prior quarter was primarily due to excess liquidity and a decline in accelerated deferred fees on PPP loans granted forgiveness by the SBA. The increase in margin compared to the fourth quarter one year ago was primarily due to higher recognition of accelerated deferred fees on PPP loans granted forgiveness by the SBA, offset in part by a decrease in short-term interest rates.

The Company’s net interest margin for the twelve months ended December 31, 2021 was 2.89% compared to 2.76% for the same period in 2020. The increase in margin compared to the prior year was primarily due to an increase in fees recognized on PPP loans, partially offset by a decrease in short-term interest rates and higher liquidity.

Non-Interest Income:

The Company’s non-interest income for the quarters ended December 31, 2021, September 30, 2021, and December 31, 2020 was $994,000, $1.3 million and $916,000, respectively. The decrease in noninterest income from the prior quarter was primarily due to prepayment penalties on loans recognized during the third quarter of 2021, partially offset by an increase in service charges and other fees.

For the twelve months ended December 31, 2021, non-interest income was $4.2 million compared to $4.0 million for the same period of 2020. The increase in non-interest income from the prior year was primarily the result of an increase in service charges and loan related fees.

Net interest income and non-interest income comprised total revenue of $15.0 million, $15.1 million, and $13.7 million for the quarters ended December 31, 2021, September 30, 2021, and December 31, 2020, respectively. Total revenue for the twelve months ended December 31, 2021 and 2020 was $58.9 million and $48.9 million, respectively.

Non-Interest Expense:

The Company’s non-interest expense for the quarters ended December 31, 2021, September 30, 2021, and December 31, 2020 was $10.0 million, $10.5 million, and $10.4 million, respectively. The decrease in non-interest expense during the fourth quarter of 2021 was primarily a result of increased deferred loan origination costs associated with the growth in the loan portfolio. Excluding capitalized loan origination costs, non-interest expenses for the fourth and third quarters of 2021 and the fourth quarter of 2020 were $11.6 million, $11.7 million, and $11.6 million, respectively.

Non-interest expense of $40.4 million for the twelve months ended December 31, 2021 compared to $37.8 million for the same period of 2020. Excluding capitalized loan origination costs, non-interest expense was $46.0 million for the twelve months ended December 31, 2021 and $45.7 million for the same period in 2020 which reflects the Company’s continued focus on managing expenses and leveraging the recent investment in infrastructure to support the continued growth of the Company.

The Company’s efficiency ratio, the ratio of non-interest expense to revenues, was 66.90%, 69.42%, and 76.15% for the quarters ended December 31, 2021, September 30, 2021, and December 31, 2020, respectively. For the twelve months ended December 31, 2021 and 2020, the Company’s efficiency ratio was 68.65% and 77.27%, respectively.

Balance Sheet:

Total assets of $2.02 billion as of December 31, 2021, represented a decrease of $34.1 million, or 2%, compared to $2.05 billion at September 30, 2021 and an increase of $109.2 million, or 6%, compared to $1.91 billion at December 31, 2020. The decrease in total assets from the third quarter of 2021 was primarily due to a reduction in liquidity resulting from the seasonal outflow of deposits related to tax planning distributions made by certain commercial clients, partially offset by growth in the loan and investment portfolios. The year-over-year increase in total assets was primarily due to excess liquidity generated from growth in the deposit portfolio as the result of funding additional PPP loans combined with organic growth.

Total gross loans increased by $74.7 million, or 6%, to $1.38 billion at December 31, 2021 compared to $1.30 billion at September 30, 2021 and increased by $7.6 million, or 1%, compared to $1.37 billion at December 31, 2020.

During the fourth quarter of 2021, commercial and real estate other loans increased by $46.1 million and $33.0 million, respectively, due to organic growth. Additionally, during the fourth quarter of 2021 the Company purchased, net of discount, $22.7 million of residential solar loans. Partially offsetting these increases within the total loan portfolio, SBA loans decreased by $25.7 million primarily due to PPP loan forgiveness.

Year-over-year, commercial and real estate other loans increased by $59.7 million and $146.5 million, respectively, due to organic growth. The Company also purchased two portfolios of residential solar loans totaling approximately $42.7 million, net of discount. Partially offsetting these increases within the total loan portfolio, SBA loans decreased by $236.2 million primarily due to PPP loan forgiveness.

As a result of the CARES Act PPP, which was launched in April 2020 and re-launched in January 2021, the Company funded approximately $491.3 million in loans. Approximately $418.8 million of those balances have been granted forgiveness by the SBA as of December 31, 2021.

Total deposits decreased by $61.9 million, or 4%, to $1.68 billion at December 31, 2021, from $1.74 billion at September 30, 2021 and increased by $147.9 million, or 10%, over $1.53 billion at December 31, 2020. The decrease in total deposits from the end of the third quarter of 2021 was primarily due to a reduction in noninterest- bearing demand deposits of $19.4 million and a reduction in money market and savings deposits of $32.6 million.

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 combined with organic growth. Noninterest-bearing deposits, consisting primarily of commercial business operating accounts, represented 46% of total deposits at December 31, 2021, compared to 45% at September 30, 2021 and 44% at December 31, 2020.

As of December 31, 2021, the Company had borrowing arrangements, excluding junior subordinated debt securities, of $106.4 million compared to $79.5 million at September 30, 2021 and $189.0 million as of December 31, 2020. The increase in borrowings during the fourth quarter of 2021 was comprised primarily of a $50.0 million short-term FHLB advance, partially offset by a $23.1 million reduction in PPPLF activity.

Asset Quality:

The provision for loan losses increased to $504,000 for the fourth quarter of 2021 compared to $300,000 for the third quarter of 2021 and decreased from $700,000 for the fourth quarter of 2020. Net loan recoveries in the fourth quarter of 2021 were $6,000, or 0.00% of gross loans, compared to net recoveries of $31,000, or 0.00% of gross loans, in the third quarter of 2021 and net recoveries of $26,000, or 0.00% of gross loans, in the fourth quarter 2020.

Non-performing assets (“NPAs”) to total assets of 0.01% at December 31, 2021 compared to 0.06% at September 30, 2021 and 0.01% at December 31, 2020, with non-performing loans of $232,000, $1.2 million, and $234,000 respectively, on those dates. The decrease in NPAs at December 31, 2021 compared to the September 30, 2021 primarily related to one commercial real estate loan that was paid off in full by the borrower.

The allowance for loan losses increased by $510,000 to $14.1 million, or 1.02% of total loans, at December 31, 2021, compared to $13.6 million, or 1.04% of total loans, at September 30, 2021 and decreased by $30,000 compared to $14.1 million, or 1.03% of total loans, at December 31, 2020. The increase in the allowance for loan losses in the quarter ended December 31, 2021 compared to the quarter ended September 30, 2021 was primarily the result of growth in the loan portfolio throughout the core segments of our business. The allowance as a percentage of total loans in the quarters ended December 31, 2021, September 30, 2021, and December 31, 2020 remained consistent and reflects the Company’s continued assessment of the qualitative reserves in response to general macroeconomic impacts related to COVID-19 combined with continued strong credit quality.

Capital Adequacy:

At December 31, 2021, shareholders’ equity totaled $150.8 million compared to $147.2 million at September 30, 2021 and $136.4 million one year ago. As a result, the Company’s total risk-based capital ratio, Tier 1 capital ratio and Tier 1 leverage ratio of 12.75%, 8.62%, and 7.23%, respectively, were all substantially above the regulatory standards for “well-capitalized” institutions of 10.00%, 8.00% and 5.00% respectively.

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
President and Chief Executive Officer
seshelton@bankcbc.com

Thomas A. Sa, (510) 457-3775
Senior Executive Vice President
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, 2020 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, 2021, which we expect to file with the SEC during the first quarter of 2022, 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 law.

FINANCIAL TABLES FOLLOW

CALIFORNIA BANCORP AND SUBSIDIARY
SELECTED FINANCIAL INFORMATION (UNAUDITED) - PROFITABILITY
(Dollars in Thousands, Except Per Share Data)
										Change												Change
QUARTERLY HIGHLIGHTS:		Q4 2021				Q3 2021				$				%				Q4 2020				$				%
Interest income		$	15,543			$	15,539			$	4			0	%			$	14,748			$	795			5	%
Interest expense			1,576				1,698				(122	)		-7	%				1,985				(409	)		-21	%
Net interest income			13,967				13,841				126			1	%				12,763				1,204			9	%
Provision for loan losses			504				300				204			68	%				700				(196	)		-28	%
Net interest income after provision for loan losses			13,463				13,541				(78	)		-1	%				12,063				1,400			12	%
Non-interest income			994				1,302				(308	)		-24	%				916				78			9	%
Non-interest expense			10,009				10,513				(504	)		-5	%				10,416				(407	)		-4	%
Income before income taxes			4,448				4,330				118			3	%				2,563				1,885			74	%
Income tax expense			1,267				1,114				153			14	%				778				489			63	%
Net income		$	3,181			$	3,216			$	(35	)		-1	%			$	1,785			$	1,396			78	%
Diluted earnings per share		$	0.38			$	0.39			$	(0.01	)		-3	%			$	0.22			$	0.16			73	%
Net interest margin			2.81	%			2.87	%		-6 Basis Points									2.66	%		+15 Basis Points
Efficiency ratio			66.90	%			69.42	%		-252 Basis Points									76.15	%		-925 Basis Points
										Change
YEAR-TO-DATE HIGHLIGHTS:			2021				2020			$				%
Interest income		$	61,293			$	53,019			$	8,274			16	%
Interest expense			6,563				8,102				(1,539	)		-19	%
Net interest income			54,730				44,917				9,813			22	%
Provision for loan losses			4				4,880				(4,876	)		-100	%
Net interest income after provision for loan losses			54,726				40,037				14,689			37	%
Non-interest income			4,173				4,012				161			4	%
Non-interest expense			40,437				37,809				2,628			7	%
Income before income taxes			18,462				6,240				12,222			196	%
Income tax expense			5,094				1,937				3,157			163	%
Net income		$	13,368			$	4,303			$	9,065			211	%
Diluted earnings per share		$	1.61			$	0.53			$	1.08			204	%
Net interest margin			2.89	%			2.76	%		+13 Basis Points
Efficiency ratio			68.65	%			77.27	%		-862 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 2021				Q3 2021				$				%				Q4 2020				$				%
Total assets		$	2,014,996			$	2,049,079			$	(34,083	)		-2	%			$	1,905,779			$	109,217			6	%
Gross loans			1,376,649				1,301,972				74,677			6	%				1,369,070				7,579			1	%
Deposits			1,680,138				1,742,054				(61,916	)		-4	%				1,532,206				147,932			10	%
Tangible equity			143,241				139,715				3,526			3	%				128,856				14,385			11	%
Tangible book value per share		$	17.37			$	16.93			$	0.44			3	%			$	15.77			$	1.60			10	%
Tangible equity / total assets			7.11	%			6.82	%		+29 Basis Points									6.76	%		+35 Basis Points
Gross loans / total deposits			81.94	%			74.74	%		+720 Basis Points									89.35	%		-741 Basis Points
Noninterest-bearing deposits / total deposits			45.90	%			45.39	%		+51 Basis Points									43.93	%		+197 Basis Points
QUARTERLY AVERAGE										Change												Change
HIGHLIGHTS:		Q4 2021				Q3 2021				$				%				Q4 2020				$				%
Total assets		$	2,054,490			$	1,985,894			$	68,596			3	%			$	1,993,661			$	60,829			3	%
Total earning assets			1,971,558				1,912,697				58,861			3	%				1,910,656				60,902			3	%
Gross loans			1,330,044				1,316,080				13,964			1	%				1,375,664				(45,620	)		-3	%
Deposits			1,759,592				1,718,525				41,067			2	%				1,516,441				243,151			16	%
Tangible equity			142,118				138,833				3,285			2	%				127,981				14,137			11	%
Tangible equity / total assets			6.92	%			6.99	%		-7 Basis Points									6.42	%		+50 Basis Points
Gross loans / total deposits			75.59	%			76.58	%		-99 Basis Points									90.72	%		-1,513 Basis Points
Noninterest-bearing deposits / total deposits			45.24	%			45.17	%		+7 Basis Points									44.68	%		+56 Basis Points
YEAR-TO-DATE AVERAGE										Change
HIGHLIGHTS:			2021				2020			$				%
Total assets		$	1,968,884			$	1,713,416			$	255,468			15	%
Total earning assets			1,891,234				1,629,615				261,619			16	%
Gross loans			1,368,960				1,219,324				149,636			12	%
Deposits			1,664,352				1,308,564				355,788			27	%
Tangible equity			136,623				126,343				10,280			8	%
Tangible equity / total assets			6.94	%			7.37	%		-43 Basis Points
Gross loans / total deposits			82.25	%			93.18	%		-1,093 Basis Points
Noninterest-bearing deposits / total deposits			44.93	%			43.31	%		+162 Basis Points

CALIFORNIA BANCORP AND SUBSIDIARY
SELECTED INTERIM FINANCIAL INFORMATION (UNAUDITED) - ASSET QUALITY
(Dollars in Thousands)
ALLOWANCE FOR LOAN LOSSES:		12/31/21				09/30/21				06/30/21				03/31/21				12/31/20
Balance, beginning of period		$	13,571			$	13,240			$	14,577			$	14,111			$	13,385
Provision for loan losses, quarterly			504				300				(1,100	)			300				700
Charge-offs, quarterly			-				-				(278	)			-				-
Recoveries, quarterly			6				31				41				166				26
Balance, end of period		$	14,081			$	13,571			$	13,240			$	14,577			$	14,111
NONPERFORMING ASSETS:		12/31/21				09/30/21				06/30/21				03/31/21				12/31/20
Loans accounted for on a non-accrual basis		$	232			$	1,233			$	1,234			$	234			$	234
Loans with principal or interest contractually past due 90 days or more and still accruing interest			-				-				-				-				-
Nonperforming loans		$	232			$	1,233			$	1,234			$	234			$	234
Other real estate owned			-				-				-				-				-
Nonperforming assets		$	232			$	1,233			$	1,234			$	234			$	234
Loans restructured and in compliance with modified terms			-				-				-				-				-
Nonperforming assets and restructured loans		$	232			$	1,233			$	1,234			$	234			$	234
Nonperforming loans by asset type:
Commercial		$	-			$	-			$	-			$	-			$	-
Real estate other			-				1,000				1,000				-				-
Real estate construction and land			-				-				-				-				-
SBA			232				233				234				234				234
Other			-				-				-				-				-
Nonperforming loans		$	232			$	1,233			$	1,234			$	234			$	234
ASSET QUALITY:		12/31/21				09/30/21				06/30/21				03/31/21				12/31/20
Allowance for loan losses / gross loans			1.02	%			1.04	%			0.98	%			0.99	%			1.03	%
Allowance for loan losses / nonperforming loans			6069.40	%			1100.65	%			1072.93	%			6229.49	%			6030.34	%
Nonperforming assets / total assets			0.01	%			0.06	%			0.07	%			0.01	%			0.01	%
Nonperforming loans / gross loans			0.02	%			0.09	%			0.09	%			0.02	%			0.02	%
Net quarterly charge-offs / gross loans			-0.00	%			-0.00	%			0.02	%			-0.01	%			-0.00	%

CALIFORNIA BANCORP AND SUBSIDIARY
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands, Except Per Share Data)
		Three months ended												Twelve months ended
		12/31/21				09/30/21				12/31/20				12/31/21				12/31/20
INTEREST INCOME
Loans		$	14,520			$	14,870			$	14,305			$	58,677			$	51,401
Federal funds sold			216				199				131				587				685
Investment securities			807				470				312				2,029				933
Total interest income			15,543				15,539				14,748				61,293				53,019
INTEREST EXPENSE
Deposits			937				1,152				1,359				4,418				6,341
Other			639				546				626				2,145				1,761
Total interest expense			1,576				1,698				1,985				6,563				8,102
Net interest income			13,967				13,841				12,763				54,730				44,917
Provision for loan losses			504				300				700				4				4,880
Net interest income after provision for loan losses			13,463				13,541				12,063				54,726				40,037
NON-INTEREST INCOME
Service charges and other fees			1,038				905				662				3,222				2,949
Other non-interest income			(44	)			397				254				951				1,063
Total non-interest income			994				1,302				916				4,173				4,012
NON-INTEREST EXPENSE
Salaries and benefits			6,370				6,920				7,072				26,031				22,122
Premises and equipment			1,320				1,372				1,125				5,098				4,755
Other			2,319				2,221				2,219				9,308				10,932
Total non-interest expense			10,009				10,513				10,416				40,437				37,809
Income before income taxes			4,448				4,330				2,563				18,462				6,240
Income taxes			1,267				1,114				778				5,094				1,937
NET INCOME		$	3,181			$	3,216			$	1,785			$	13,368			$	4,303
EARNINGS PER SHARE
Basic earnings per share		$	0.39			$	0.39			$	0.22			$	1.63			$	0.53
Diluted earnings per share		$	0.38			$	0.39			$	0.22			$	1.61			$	0.53
Average common shares outstanding			8,255,340				8,244,154				8,152,052				8,222,749				8,131,325
Average common and equivalent shares outstanding			8,342,032				8,310,799				8,203,931				8,292,942				8,169,082
PERFORMANCE MEASURES
Return on average assets			0.61	%			0.64	%			0.36	%			0.68	%			0.25	%
Return on average equity			8.43	%			8.72	%			5.25	%			9.27	%			3.22	%
Return on average tangible equity			8.88	%			9.19	%			5.55	%			9.78	%			3.41	%
Efficiency ratio			66.90	%			69.42	%			76.15	%			68.65	%			77.27	%

CALIFORNIA BANCORP AND SUBSIDIARY
INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
		12/31/21				09/30/21				06/30/21				03/31/21				12/31/20
ASSETS
Cash and due from banks		$	4,539			$	22,424			$	26,159			$	18,475			$	22,485
Federal funds sold			465,917				578,626				366,347				342,305				396,032
Investment securities			103,278				82,108				61,142				58,105				55,093
Loans:
Commercial			474,281				428,169				425,643				439,044				414,548
Real estate other			697,212				664,202				616,451				573,520				550,690
Real estate construction and land			43,194				41,312				41,558				45,550				37,193
SBA			81,403				107,096				204,734				364,273				317,564
Other			80,559				61,193				64,253				47,926				49,075
Loans, gross			1,376,649				1,301,972				1,352,639				1,470,313				1,369,070
Unearned fee income			1,688				760				(629	)			(1,569	)			523
Allowance for loan losses			(14,081	)			(13,571	)			(13,240	)			(14,577	)			(14,111	)
Loans, net			1,364,256				1,289,161				1,338,770				1,454,167				1,355,482
Premises and equipment, net			4,405				4,227				5,089				5,452				5,778
Bank owned life insurance			24,412				24,247				24,085				23,920				23,718
Goodwill and core deposit intangible			7,513				7,524				7,534				7,544				7,554
Accrued interest receivable and other assets			40,676				40,762				39,937				37,620				39,637
Total assets		$	2,014,996			$	2,049,079			$	1,869,063			$	1,947,588			$	1,905,779
LIABILITIES
Deposits:
Demand noninterest-bearing		$	771,205			$	790,646			$	791,580			$	742,574			$	673,100
Demand interest-bearing			37,250				39,679				36,268				33,022				34,869
Money market and savings			717,480				750,112				674,390				670,517				623,603
Time			154,203				161,617				177,534				183,602				200,634
Total deposits			1,680,138				1,742,054				1,679,772				1,629,715				1,532,206
Junior subordinated debt securities			54,028				59,009				24,745				24,729				24,994
Other borrowings			106,387				79,536				-				134,819				189,043
Accrued interest payable and other liabilities			23,689				21,241				20,805				19,147				23,126
Total liabilities			1,864,242				1,901,840				1,725,322				1,808,410				1,769,369
SHAREHOLDERS' EQUITY
Common stock			109,473				109,009				108,417				108,430				107,948
Retained earnings			41,189				38,008				34,792				30,630				27,821
Accumulated other comprehensive (loss)			92				222				532				118				641
Total shareholders' equity			150,754				147,239				143,741				139,178				136,410
Total liabilities and shareholders' equity		$	2,014,996			$	2,049,079			$	1,869,063			$	1,947,588			$	1,905,779
			-				-				-				-				-
CAPITAL ADEQUACY
Tier I leverage ratio			7.23	%			7.29	%			7.53	%			7.46	%			7.49	%
Tier I risk-based capital ratio			8.62	%			9.17	%			9.35	%			9.47	%			10.11	%
Total risk-based capital ratio			12.75	%			13.92	%			11.93	%			12.34	%			13.22	%
Total equity/ total assets			7.48	%			7.19	%			7.69	%			7.15	%			7.16	%
Book value per share		$	18.28			$	17.85			$	17.47			$	16.99			$	16.69
Common shares outstanding			8,246,300				8,250,109				8,229,116				8,189,598				8,171,734

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,
		2021											2021
						Yields			Interest								Yields			Interest
		Average				or			Income/				Average				or			Income/
		Balance				Rates			Expense				Balance				Rates			Expense
ASSETS
Interest earning assets:
Loans (1)		$	1,330,044			4.33	%		$	14,520			$	1,316,080			4.48	%		$	14,870
Federal funds sold			536,503			0.16	%			216				530,806			0.15	%			199
Investment securities			105,011			3.05	%			807				65,811			2.83	%			470
Total interest earning assets			1,971,558			3.13	%			15,543				1,912,697			3.22	%			15,539
Noninterest-earning assets:
Cash and due from banks			18,886											18,627
All other assets (2)			64,046											54,570
TOTAL		$	2,054,490										$	1,985,894
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits:
Demand		$	37,379			0.10	%		$	9			$	36,696			0.09	%		$	8
Money market and savings			766,826			0.40	%			769				735,785			0.52	%			961
Time			159,420			0.40	%			159				169,849			0.43	%			183
Other			122,722			2.07	%			639				102,287			2.12	%			546
Total interest-bearing liabilities			1,086,347			0.58	%			1,576				1,044,617			0.64	%			1,698
Noninterest-bearing liabilities:
Demand deposits			795,967											776,195
Accrued expenses and other liabilities			22,539											18,719
Shareholders' equity			149,637											146,363
TOTAL		$	2,054,490										$	1,985,894
Net interest income and margin (3)						2.81	%		$	13,967							2.87	%		$	13,841
(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 net deferred loan fees of $125,000 and $1.0 million, respectively.
(2) Other noninterest-earning assets includes the allowance for loan losses of $13.6 million and $13.3 million, respectively.
(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,
		2021											2020
						Yields			Interest								Yields			Interest
		Average				or			Income/				Average				or			Income/
		Balance				Rates			Expense				Balance				Rates			Expense
ASSETS
Interest earning assets:
Loans (1)		$	1,330,044			4.33	%		$	14,520			$	1,375,664			4.14	%		$	14,305
Federal funds sold			536,503			0.16	%			216				480,790			0.11	%			131
Investment securities			105,011			3.05	%			807				54,202			2.29	%			312
Total interest earning assets			1,971,558			3.13	%			15,543				1,910,656			3.07	%			14,748
Noninterest-earning assets:
Cash and due from banks			18,886											20,616
All other assets (2)			64,046											62,389
TOTAL		$	2,054,490										$	1,993,661
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits:
Demand		$	37,379			0.10	%		$	9			$	33,674			0.13	%		$	11
Money market and savings			766,826			0.40	%			769				604,578			0.74	%			1,118
Time			159,420			0.40	%			159				200,606			0.46	%			230
Other			122,722			2.07	%			639				318,570			0.78	%			626
Total interest-bearing liabilities			1,086,347			0.58	%			1,576				1,157,428			0.68	%			1,985
Noninterest-bearing liabilities:
Demand deposits			795,967											677,583
Accrued expenses and other liabilities			22,539											23,466
Shareholders' equity			149,637											135,184
TOTAL		$	2,054,490										$	1,993,661
Net interest income and margin (3)						2.81	%		$	13,967							2.66	%		$	12,763
(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 net deferred loan fees of $125,000 and $494,000, respectively.
(2) Other noninterest-earning assets includes the allowance for loan losses of 13.6 million and $13.4 million, respectively.
(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,
		2021											2020
						Yields			Interest								Yields			Interest
		Average				or			Income/				Average				or			Income/
		Balance				Rates			Expense				Balance				Rates			Expense
ASSETS
Interest earning assets:
Loans (1)		$	1,368,960			4.29	%		$	58,677			$	1,219,324			4.22	%		$	51,401
Federal funds sold			450,898			0.13	%			587				371,476			0.18	%			685
Investment securities			71,376			2.84	%			2,029				38,815			2.40	%			933
Total interest earning assets			1,891,234			3.24	%			61,293				1,629,615			3.25	%			53,019
Noninterest-earning assets:
Cash and due from banks			17,642											20,810
All other assets (2)			60,008											62,991
TOTAL		$	1,968,884										$	1,713,416
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits:
Demand		$	35,623			0.11	%		$	38			$	28,559			0.13	%		$	36
Money market and savings			705,621			0.51	%			3,627				547,592			0.88	%			4,795
Time			175,240			0.43	%			753				165,630			0.91	%			1,510
Other			139,011			1.54	%			2,145				249,474			0.71	%			1,761
Total interest-bearing liabilities			1,055,495			0.62	%			6,563				991,255			0.82	%			8,102
Noninterest-bearing liabilities:
Demand deposits			747,868											566,783
Accrued expenses and other liabilities			21,363											21,843
Shareholders' equity			144,158											133,535
TOTAL		$	1,968,884										$	1,713,416
Net interest income and margin (3)						2.89	%		$	54,730							2.76	%		$	44,917
(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 net deferred loan fees of $3.4 million and $1.6 million, respectively.
(2) Other noninterest-earning assets includes the allowance for loan losses of $13.9 million and $12.3 million, respectively.
(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:		Q4 2021				Q3 2021				Q2 2021				Q1 2021				Q4 2020
Net interest income		$	13,967			$	13,841			$	13,586			$	13,336			$	12,763
Non-interest income			994				1,302				956				921				916
Total revenue		$	14,961			$	15,143			$	14,542			$	14,257			$	13,679
PPP RELATED DEFERRED FEES														Amortization				Deferred
AND COSTS:		Deferred Balance at Origination												of Deferred				Balance
		2021 Program				2020 Program				Total				Balance				Remaining
PPP fees		$	4,479			$	9,086			$	13,565			$	11,429			$	2,136
PPP capitalized loan origination costs			540				2,451				2,991				2,650			$	341
Net PPP fees		$	3,939			$	6,635			$	10,574			$	8,779			$	1,795
IMPACT OF PPP ACTIVITY REFLECTED		Amortization of Deferred Balance
IN NET INTEREST INCOME:		Q4 2021				Q3 2021				Q2 2021				Q1 2021				Q4 2020
PPP fees		$	817			$	1,909			$	2,185			$	2,222			$	2,083
PPP capitalized loan origination costs			109				348				514				633				527
Net PPP fees		$	708			$	1,561			$	1,671			$	1,589			$	1,556
NON-INTEREST EXPENSE:		Q4 2021				Q3 2021				Q2 2021				Q1 2021				Q4 2020
Total non-interest expense		$	10,009			$	10,513			$	9,835			$	10,080			$	10,416
Total capitalized loan origination costs			1,601				1,197				1,217				1,513				1,198
Total operating expenses, before capitalization of loan origination costs		$	11,610			$	11,710			$	11,052			$	11,593			$	11,614
GROSS LOANS:		12/31/21				09/30/21				06/30/21				03/31/21				12/31/20
Gross loans		$	1,376,649			$	1,301,972			$	1,352,639			$	1,470,313			$	1,369,070
PPP loans			72,527				97,451				194,472				353,426				306,373
Gross loans, excluding PPP loans		$	1,304,122			$	1,204,521			$	1,158,167			$	1,116,887			$	1,062,697

FAQ

What were California BanCorp's financial results for Q4 2021?

California BanCorp reported a net income of $3.2 million for Q4 2021, consistent with Q3 2021, and diluted earnings per share of $0.38.

How much did California BanCorp's net income increase in 2021?

Net income for California BanCorp increased by 211% in 2021, reaching $13.4 million compared to $4.3 million in 2020.

What is the loan growth percentage for California BanCorp in Q4 2021?

The company experienced an annualized loan growth of 33% in Q4 2021.

What is California BanCorp's diluted EPS for the year 2021?

California BanCorp's diluted earnings per share for 2021 was $1.61, up from $0.53 in 2020.

What is the total assets figure for California BanCorp as of December 31, 2021?

As of December 31, 2021, California BanCorp reported total assets of $2.02 billion.