California BanCorp Q2 2024: Assets Top $2B

TL;DR

CALB Q2: Assets hit $2.05B, Net Interest Income $15.5M. Deposits $1.79B.

AI Summary

California BanCorp reported its Q2 2024 results, with total assets reaching $2.05 billion as of June 30, 2024. Net interest income for the quarter ending June 30, 2024, was $15.5 million. The company also noted total deposits of $1.79 billion as of the same date.

Why It Matters

This filing provides insight into the financial health and performance of California BanCorp, a regional bank, which can impact its customers and the local economy.

Risk Assessment

Risk Level: medium — As a financial institution, California BanCorp is subject to market fluctuations, interest rate changes, and regulatory oversight, which can pose medium-level risks.

Key Numbers

• $2.05B — Total Assets (As of June 30, 2024, indicating the bank's overall size.)
• $15.5M — Net Interest Income (For the quarter ending June 30, 2024, reflecting core profitability from lending and borrowing.)
• $1.79B — Total Deposits (As of June 30, 2024, representing the bank's funding base.)

Key Players & Entities

• California BanCorp (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• $2.05 billion (dollar_amount) — Total assets as of June 30, 2024
• $15.5 million (dollar_amount) — Net interest income for the quarter ending June 30, 2024
• $1.79 billion (dollar_amount) — Total deposits as of June 30, 2024

FAQ

Filing Documents

• bcal-20240630.htm (10-Q) — 4186KB
• bcalq2-2024exhibit311.htm (EX-31.1) — 10KB
• bcalq2-2024exhibit312.htm (EX-31.2) — 10KB
• bcalq2-2024exhibit320.htm (EX-32.0) — 6KB
• 0001795815-24-000014.txt ( ) — 17917KB
• bcal-20240630.xsd (EX-101.SCH) — 62KB
• bcal-20240630_cal.xml (EX-101.CAL) — 129KB
• bcal-20240630_def.xml (EX-101.DEF) — 447KB
• bcal-20240630_lab.xml (EX-101.LAB) — 943KB
• bcal-20240630_pre.xml (EX-101.PRE) — 745KB
• bcal-20240630_htm.xml (XML) — 3934KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 6 Consolidated Balance Sheets 6 Consolidated Statements of Income 7 Consolidated Statements of Comprehensive Income (Loss) 8 Consolidated Statements of Changes in Shareholders' Equity 9 Consolidated Statements of Cash Flows 11

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 13

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 53

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 93

Controls and Procedures

Item 4. Controls and Procedures 95

— OTHER INFORMATION

PART II — OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 95

Risk Factors

Item 1A. Risk Factors 95

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 95

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 96

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 96

Other Information

Item 5. Other Information 96

Exhibits

Item 6. Exhibits 96 SIGNATURES 98 2 Table of Contents Cautionary Note Regarding Forward-Looking Statements In this quarterly report on Form 10-Q, the words "we," "us," "our," "BCAL," or the "Company" refer to California BanCorp, formerly known as Southern California Bancorp, and California Bank of Commerce, N.A., formerly know as Bank of Southern California, N.A. collectively and on a consolidated basis. The words "Southern California Bancorp," "California BanCorp," or the "holding company" refer to California BanCorp on a stand-alone basis. References to the "Bank" refer to California Bank of Commerce, N.A. The statements in this quarterly report include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and other matters that are not historical facts. Examples of forward-looking statements include, among others, statements made about the Company's prospects and results following the merger of the former California BanCorp into the Company and the merger of California Bank of Commerce into the Bank on July 31, 2024 (collectively, the "Merger", as well as forecasts relating to financial and operating results or other measures of economic performance. Forward-looking statements reflect management's current view about future events and involve risks and uncertainties that may cause actual results to differ from those expressed in the forward-looking statement or historical results. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and often include the words or phrases such as "aim," "can," "may," "could," "predict," "should," "will," "would," "believe," "anticipate," "estimate," "expect," "hope," "intend," "plan," "potential," "project," "will likely result," "continue," "seek," "shall," "possible," "projec

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

— FINANCIAL STATEMENTS

ITEM 1 — FINANCIAL STATEMENTS CALIFORNIA BANCORP (FORMERLY SOUTHERN CALIFORNIA BANCORP) AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (dollars in thousands, except share data) (Unaudited) June 30, 2024 December 31, 2023 ASSETS Cash and due from banks $ 29,153 $ 33,008 Federal funds and interest-bearing balances 75,580 53,785 Total cash and cash equivalents 104,733 86,793 Debt securities available-for-sale, at fair value (amortized cost of $ 132,862 and $ 136,366 at June 30, 2024 and December 31, 2023) 123,653 130,035 Debt securities held-to-maturity, at amortized cost (fair value of $ 48,476 and $ 50,432 at June 30, 2024 and December 31, 2023) 53,449 53,616 Loans held for sale, at lower of cost or fair value 6,982 7,349 Loans held for investment 1,877,617 1,957,442 Allowance for credit losses on loans ( 23,788 ) ( 22,569 ) Loans held for investment, net 1,853,829 1,934,873 Restricted stock, at cost 16,898 16,055 Premises and equipment, net 12,741 13,270 Right-of-use asset 8,298 9,291 Goodwill 37,803 37,803 Core deposit intangible, net 1,065 1,195 Bank owned life insurance 39,445 38,918 Deferred taxes, net 11,080 11,137 Accrued interest receivable and other assets 23,717 19,917 Total assets $ 2,293,693 $ 2,360,252 LIABILITIES Noninterest-bearing demand $ 666,606 $ 675,098 Interest-bearing NOW accounts 355,994 381,943 Money market and savings accounts 660,808 636,685 Time deposits 252,454 249,830 Total deposits 1,935,862 1,943,556 Borrowings 42,913 102,865 Operating lease liability 10,931 12,117 Accrued interest payable and other liabilities 10,768 13,562 Total liabilities 2,000,474 2,072,100 Commitments and contingencies (Note 11) SHAREHOLDERS' EQUITY Preferred stock - 50,000,000 shares authorized, no par value; no shares issued and outstanding at June 30, 2024 and December 31, 2023 — — Common stock - 50,000,000 shares authorized, no par value; issued and outstanding 18,547,352 and 18,369,115 at June 30, 2024 and December 31, 20

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2024 NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations California BanCorp (formerly Southern California Bancorp) is a California corporation incorporated on October 2, 2019 and is registered with the Board of Governors of the Federal Reserve System as a bank holding company for California Bank of Commerce, N.A. (formerly Bank of Southern California, N.A.) under the Bank Holding Company Act of 1956, as amended. On May 15, 2020, the California BanCorp (formerly Southern California Bancorp) completed a reorganization whereby California Bank of Commerce, N.A. became a wholly-owned subsidiary of the Company. California Bank of Commerce, N.A. began business operations in December 2001 under the name Ramona National Bank. The Bank changed its name to First Business Bank, N.A. in 2006, to Bank of Southern California, N.A. in 2010. Bank of Southern California, N.A. and to California Bank of Commerce, N.A. on July 31, 2024. California Bank of Commerce, N.A. has a wholly-owned subsidiary, BCAL OREO1, LLC, which was incorporated on February 14, 2024. BCAL OREO1, LLC is used for holding other real estate owned and other assets acquired by foreclosure. The Bank operates under a federal charter and its primary regulator is the Office of the Comptroller of the Currency ("OCC"). The words "we," "us," "our," or the "Company" refer to the new California BanCorp and California Bank of Commerce, N.A. collectively and on a consolidated basis. References herein to "California BanCorp," or the "holding company" refer to California BanCorp on a stand-alone basis. References to the "Bank" refer to California Bank of Commerce, N.A. As a relationship-focused community bank, the Bank offers a range of financial products and services to individuals, professionals, and small- to medium-sized businesses through its 14 branch offices serving Southern and Northern California. Many of the banki

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