California BanCorp Reports Financial Results for the First Quarter Ended March 31, 2021

Oakland, California, UNITED STATES


OAKLAND, Calif., April 30, 2021 (GLOBE NEWSWIRE) -- California BanCorp (NASDAQ: CALB), whose subsidiary is California Bank of Commerce, announced today its financial results for the first quarter ended March 31, 2021.

The Company reported net income of $2.8 million for the first quarter of 2021, representing an increase of $1.0 million, or 57%, compared to $1.8 million for the fourth quarter of 2020 and an increase of $2.3 million, or 494%, compared to $473,000 in the first quarter of 2020.

Diluted per share earnings of $0.34 for the first quarter of 2021 compared to $0.22 for the fourth quarter of 2020 and $0.06 for the first quarter of 2020.

“We delivered a record quarter of earnings in the first quarter driven by our continued strong core loan and deposit growth, which we were able to generate while also helping clients access the Paycheck Protection Program (“PPP”) and originating a significant volume of loans in the second round of the program,” said Steven Shelton, President and CEO of California BanCorp. “The commercial banking platform we have built with highly experienced bankers offering sophisticated financial products and services through a relationship-based approach is enabling us to continue to take market share, win full banking relationships with high quality operating companies, and originate loans with attractive risk-adjusted yields that support our net interest margin. Our success in loan production and deposit gathering is resulting in strong balance sheet growth, improving operating leverage, and a higher level of profitability. During the first quarter, we saw balanced loan production across our commercial banking platform, as the investments we have made to expand our presence in key markets and develop expertise in niche lending areas continue to produce good results. Our new business pipeline remains healthy, which we believe positions us well to continue driving the growth in our balance sheet that will lead to further improvement in our profitability in the future.”

Financial Highlights:

Profitability - three months ended March 31, 2021 compared to December 31, 2020

  • Net income of $2.8 million and $0.34 per diluted share, compared to $1.8 million and $0.22 per share, respectively.
  • Revenue of $14.3 million increased $578,000, or 4%, compared to $13.7 million for the fourth quarter of 2020.
  • Provision for loan losses decreased $400,000 due to improved credit quality and continued adjustments in the 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 $11.6 million remained consistent with the fourth quarter of 2020 level of $11.6 million.

Financial Position – March 31, 2021 compared to December 31, 2020

  • Total assets increased by $41.8 million, or 2%, to $1.95 billion primarily as the result of loan growth during the quarter, which was funded by the growth in our deposit portfolio.
  • Total gross loans increased by $101.2 million, or 7%, to $1.47 billion. Excluding the impact of new PPP loans funded and certain PPP loans forgiven by the SBA, total gross loans increased during the first quarter by $54.2 million, or 5%, to $1.12 billion.
  • Total deposits increased by $97.5 million, or 6%, to $1.63 billion.
  • Total borrowings decreased by $54.2 million, or 29%, to $134.8 million due to repayment of borrowings under the Federal Reserve Paycheck Protection Program Liquidity Facility (“PPPLF”).
  • Capital ratios, including the impact of PPP loan activity, remain healthy with a tier-one leverage ratio of 7.46%, tier I capital ratio of 9.47% and total risk-based capital ratio of 12.34%.

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 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 $362.0 million in loan fundings. At March 31, 2021, approximately $130.2 million of these balances have been granted forgiveness by the SBA.  
    • Following the re-launch of the PPP program in January 2021, we processed 100% of the approximately 370 applications received and all of the applications we submitted to the SBA received approval, resulting in $117.3 million in additional loan fundings.
  • 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 March 31, 2021, four loans totaling $9.5 million were on a deferred status or have had a structure modification under the CARES Act guidelines.

Net Interest Income and Margin:

Net interest income for the quarter ended March 31, 2021 was $13.3 million, an increase of $573,000 or 4%, over $12.8 million for the three months ended December 31, 2020, and an increase of $3.2 million, or 31%, over $10.2 million for the quarter ended March 31, 2020. The increase in net interest income compared to the fourth quarter of 2020 was primarily attributable to the growth of the loan portfolio combined with a reduction in the average cost of deposits. Compared to the first quarter of 2020, the increase in net interest income resulted from growth in earning assets and amortization of fees received on PPP loans offset, in part, by the decline in short-term interest rates and higher liquidity.

The Company’s net interest margin for the quarter was 2.94%, compared to 2.66% for the fourth quarter of 2020 and 3.80% for the same period in 2020. The increase in margin compared to the prior quarter was primarily due to the growth of the loan portfolio combined with a reduction in the average cost of deposits. The decrease in margin from the same period last year was primarily the result of a decrease in short-term interest rates, partially offset by fees recognized on PPP loans.

Non-Interest Income:

The Company’s non-interest income for the quarters ended March 31, 2021, December 31, 2020, and March 31, 2020 was $921,000, $916,000 and $1.3 million, respectively. The decrease in noninterest income from the first quarter of 2020 was primarily due to a decrease in service charges and loan related fees.

Net interest income and non-interest income comprised total revenue of $14.3 million, $13.7 million, and $11.5 million for the quarters ended March 31, 2021, December 31, 2020, and March 31, 2020, respectively.

Non-Interest Expense:

The Company’s non-interest expense for the quarters ended March 31, 2021, December 31, 2020, and March 31, 2020 was $10.1 million, $10.4 million, and $10.4 million, respectively. The decrease in non-interest expense was primarily due to capitalized loan origination costs related to growth in the loan portfolio.

The Company’s efficiency ratio, the ratio of non-interest expense to revenues, was 70.70%, 76.15%, and 90.72% for the quarters ending March 31, 2021, December 31, 2020, and March 31, 2020, respectively.

Balance Sheet:

Total assets of $1.95 billion as of March 31, 2021, represented an increase of $41.8 million, or 2%, compared to $1.91 billion at December 31, 2020 and an increase of $740.1 million, or 61% compared to $1.21 billion at March 31, 2020.

Total loans increased by $101.2 million, or 7% to $1.47 billion at March 31, 2021, from $1.37 billion at December 31, 2021 and $501.4 million, or 52% compared to $968.9 million at March 31, 2020. Loan growth in the first quarter of 2021 compared to the fourth quarter of 2020 was centered in commercial loans and in commercial real estate loans of $24.5 million and $22.8 million, respectively, and an increase in SBA loans of $46.7 million due to additional net fundings of PPP loans.

Year-over-year loan growth was primarily due to the origination of $492.2 million in PPP loans as well as increases in commercial loans and commercial real estate of $22.7 million and $76.8 million, respectively. In addition, the Company purchased two portfolios of residential solar loans totaling $47.4 million. These increases were partially offset by approximately $130.2 million of PPP loans that were forgiven by the SBA.

Total deposits increased by $97.5 million, or 6% to $1.63 billion at March 31, 2021, from $1.53 billion at December 31, 2020 and $600.9 million, or 58% over $1.03 billion at March 31, 2020. The increase in total deposits from the end of the fourth quarter of 2020 was primarily due to growth of non-interest bearing demand deposits of $69.5 million and money market and savings deposits of $46.9 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 and organic growth. Non-interest bearing deposits, primarily commercial business operating accounts, represented 45.6% of total deposits at March 31, 2021, compared to 43.9% at December 31, 2020 and 39.2% at March 31, 2020.

Asset Quality:

The provision for credit losses decreased to $300,000 for the first quarter of 2021, compared to $700,000 for the fourth quarter of 2020 and $400,000 for the first quarter of 2020. Net loan recoveries in the first quarter of 2021 were $166,000 or 0.01% of gross loans, compared to net recoveries of $26,000, or 0.00%, in the fourth quarter of 2020 and net recoveries of $90,000, or 0.01%, in the first quarter of 2020.

Non-performing assets (“NPAs”) to total assets of 0.01% at March 31, 2021 and December 31, 2020, compared to 0.22% at March 31, 2020, with non-performing loans of $234,000, $234,000 and $2.7 million, respectively, on those dates.

The allowance for loan losses increased by $466,000, or 3% to $14.6 million, or 0.99% of total loans at March 31, 2021, compared to $14.1 million, or 1.03% at December 31, 2020 and $11.6 million, or 1.19% of total loans at March 31, 2020. The decrease in the allowance as a percentage of total loans at March 31, 2021 compared to December 31, 2020 and March 31, 2020 reflects the impact of PPP loans, which are guaranteed by the SBA.

Capital Adequacy:

At March 31, 2021, shareholders’ equity totaled $139.2 million compared to $136.4 million at December 31, 2020 and $131.2 million one year ago. As a result, the Company’s total risk-based capital ratio, tier one capital ratio and leverage ratio of 12.34%, 9.47%, and 7.46%, respectively, were all substantially above the regulatory standards for “well-capitalized” institutions of 10.00%, 8.00% and 5.00% respectively.

“We have seen meaningful progress on our goal of improving the operating leverage from last year’s balance sheet growth. Compared to the first quarter of last year our efforts increased quarterly revenue by $2.8 million while keeping noninterest expenses flat through an extremely challenging operating environment,” said Thomas A. Sa, Senior Executive Vice President, Chief Financial Officer and Chief Operating Officer of California BanCorp. “We also continue to see healthy asset quality and a low level of credit losses, as our borrowers continue to perform well despite the impact of the ongoing pandemic.”

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) 457-3615, 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 Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, which we expect to file with the SEC during the second 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.


CALIFORNIA BANCORP AND SUBSIDIARY
SELECTED FINANCIAL INFORMATION (UNAUDITED) - PROFITABILITY
(Dollars in Thousands, Except Per Share Data)
                
                
                
                
      Change    Change
QUARTERLY HIGHLIGHTS: Q1 2021 Q4 2020 $ %  Q1 2020 $ %
                
Interest income $15,032  $14,748  $284  2%  $12,303  $2,729  22%
Interest expense  1,696   1,985   (289) -15%   2,121   (425) -20%
Net interest income  13,336   12,763   573  4%   10,182   3,154  31%
                
Provision for loan losses  300   700   (400) -57%   400   (100) -25%
Net interest income after provision              
provision for loan losses  13,036   12,063   973  8%   9,782   3,254  33%
                
Non-interest income  921   916   5  1%   1,290   (369) -29%
Non-interest expense  10,080   10,416   (336) -3%   10,407   (327) -3%
Income before income taxes  3,877   2,563   1,314  51%   665   3,212  483%
                
Income tax expense  1,068   778   290  37%   192   876  456%
Net income $2,809  $1,785  $1,024  57%  $473  $2,336  494%
                
Diluted earnings per share $0.34  $0.22  $0.12  55%  $0.06  $0.28  467%
                
Net interest margin  2.94%  2.66% +28 Basis Points   3.80% -86 Basis Points
                
Efficiency ratio  70.70%  76.15% -545 Basis Points   90.72% -2,002 Basis Points
                



CALIFORNIA BANCORP AND SUBSIDIARY
SELECTED FINANCIAL INFORMATION (UNAUDITED) - FINANCIAL POSITION
(Dollars in Thousands, Except Per Share Data)
                
                
                
                
      Change    Change
PERIOD-END HIGHLIGHTS: Q1 2021 Q4 2020 $ %  Q1 2020 $ %
                
Total assets $1,947,588$1,905,779$41,809  2%  $1,207,482$740,106 61%
Gross loans  1,470,313   1,369,070   101,243  7%   968,945   501,368 52%
Deposits  1,629,715   1,532,206   97,509  6%   1,028,861   600,854 58%
Tangible equity  131,634   128,856   2,778  2%   123,608   8,026 6%
                
Tangible book value per share $16.07  $15.77  $0.30  2%  $15.22  $0.85 6%
                
Tangible equity / total assets  6.76%  6.76% N/A   10.24% -348 Basis Points
Gross loans / total deposits  90.22%  89.35% +87 Basis Points   94.18% -396 Basis Points
Noninterest-bearing deposits /           
total deposits  45.56%  43.93% +163 Basis Points   39.19% +637 Basis Points
                
                
                
                
                
                
QUATERLY AVERAGE     Change    Change
HIGHLIGHTS: Q1 2021 Q4 2020 $ %  Q1 2020 $ %
                
Total assets $1,922,739$1,993,661$(70,922) -4%  $1,167,803$754,936 65%
Total earning assets  1,839,437   1,910,656   (71,219) -4%   1,077,431   762,006 71%
Gross loans  1,415,506   1,375,664   39,842  3%   952,303   463,203 49%
Deposits  1,569,170   1,516,441   52,729  3%   999,984   569,186 57%
Tangible equity  129,865   127,981   1,884  1%   123,752   6,113 5%
                
Tangible equity / total assets  6.75%  6.42% +33 Basis Points   10.60% -385 Basis Points
Gross loans / total deposits  90.21%  90.72% -51 Basis Points   95.23% -502 Basis Points
Noninterest-bearing deposits /           
total deposits  43.97%  44.68% -71 Basis Points   37.50% +647 Basis Points
                
                



             
             
 CALIFORNIA BANCORP AND SUBSIDIARY 
 SELECTED INTERIM FINANCIAL INFORMATION (UNAUDITED) - ASSET QUALITY 
 (Dollars in Thousands) 
             
             
             
             
 ALLOWANCE FOR LOAN LOSSES: 03/31/21 12/31/20 09/30/20 06/30/20 03/31/20 
             
             
 Balance, beginning of period $14,111  $13,385  $12,524  $11,565  $11,075  
 Provision for loan losses, quarterly  300   700   850   2,930   400  
 Charge-offs, quarterly  -   -   -   (1,976)  -  
 Recoveries, quarterly  166   26   11   5   90  
 Balance, end of period $14,577  $14,111  $13,385  $12,524  $11,565  
             
             
             
             
             
             
 NONPERFORMING ASSETS: 03/31/21 12/31/20 09/30/20 06/30/20 03/31/20 
             
 Loans accounted for on a non-accrual basis $234  $234  $580  $1,243  $2,650  
 Loans with principal or interest contractually           
 past due 90 days or more and still accruing           
 interest  -   -   -   -   -  
 Nonperforming loans $234  $234  $580  $1,243  $2,650  
 Other real estate owned  -   -   -   -   -  
 Nonperforming assets $234  $234  $580  $1,243  $2,650  
             
 Loans restructured and in compliance with           
 modified terms  -   -   -   -   624  
 Nonperforming assets and restructured loans $234  $234  $580  $1,243  $3,274  
             
 Nonperforming loans by asset type:           
 Commercial  -   -   346   1,008   2,306  
 Real estate other  -   -   -   -   -  
 Real estate construction and land  -   -   -   -   -  
 SBA  234   234   234   235   344  
 Other  -   -   -   -   -  
 Nonperforming loans $234  $234  $580  $1,243  $2,650  
             
             
             
             
             
             
 ASSET QUALITY: 03/31/21 12/31/20 09/30/20 06/30/20 03/31/20 
             
 Allowance for loan losses / gross loans  0.99%  1.03%  0.99%  0.96%  1.19% 
 Allowance for loan losses / nonperforming loans  6229.49%  6030.34%  2307.76%  1007.56%  436.42% 
 Nonperforming assets / total assets  0.01%  0.01%  0.03%  0.07%  0.22% 
 Nonperforming loans / gross loans  0.02%  0.02%  0.04%  0.10%  0.27% 
 Net quarterly charge-offs / gross loans  -0.01%  -0.00%  -0.00%  0.15%  -0.01% 
             



          
          
 CALIFORNIA BANCORP AND SUBSIDIARY 
 INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) 
 (Dollars in Thousands, Except Per Share Data) 
          
          
          
          
      Three months ended
 
    03/31/21 12/31/20 03/31/20 
          
 INTEREST INCOME        
 Loans  $14,584  $14,305  $11,783  
 Federal funds sold   88   131   329  
 Investment securities   360   312   191  
 Total interest income   15,032   14,748   12,303  
          
 INTEREST EXPENSE        
 Deposits   1,191   1,359   1,994  
 Other   505   626   127  
 Total interest expense   1,696   1,985   2,121  
          
 Net interest income   13,336   12,763   10,182  
 Provision for loan losses   300   700   400  
 Net interest income after provision        
 for loan losses   13,036   12,063   9,782  
          
 NON-INTEREST INCOME        
 Service charges and other fees   641   662   970  
 Other non-interest income   280   254   320  
 Total non-interest income   921   916   1,290  
          
 NON-INTEREST EXPENSE        
 Salaries and benefits   6,367   7,072   6,477  
 Premises and equipment   1,197   1,125   1,139  
 Other   2,516   2,219   2,791  
 Total non-interest expense   10,080   10,416   10,407  
          
 Income before income taxes   3,877   2,563   665  
 Income taxes   1,068   778   192  
          
 NET INCOME  $2,809  $1,785  $473  
          
 EARNINGS PER SHARE        
 Basic earnings per share  $0.34  $0.22  $0.06  
 Diluted earnings per share  $0.34  $0.22  $0.06  
 Average common shares outstanding   8,179,667   8,152,052   8,103,248  
 Average common and equivalent        
 shares outstanding   8,242,467   8,203,931   8,169,898  
          
 PERFORMANCE MEASURES        
 Return on average assets   0.59%  0.36%  0.16% 
 Return on average equity   8.29%  5.25%  1.45% 
 Return on average tangible equity   8.77%  5.55%  1.54% 
 Efficiency ratio   70.70%  76.15%  90.72% 
          



            
 CALIFORNIA BANCORP AND SUBSIDIARY
 INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 (Dollars in Thousands)
            
            
            
            
   03/31/21 12/31/20 09/30/20 06/30/20 03/31/20
            
 ASSETS          
 Cash and due from banks $18,475  $22,485  $23,339  $22,246  $22,792 
 Federal funds sold  342,305   396,032   480,555   485,823   117,818 
 Investment securities  58,105   55,093   50,906   39,723   34,344 
 Loans:          
 Commercial  439,044   414,548   379,400   365,881   416,308 
 Real estate other  573,520   550,690   539,541   508,916   496,765 
 Real estate construction and land  45,550   37,193   36,596   49,524   41,697 
 SBA  364,273   317,564   373,921   373,429   12,797 
 Other  47,926   49,075   25,706   1,731   1,378 
 Loans, gross  1,470,313   1,369,070   1,355,164   1,299,481   968,945 
 Unearned fee income  (1,569)  523   (1,054)  (1,569)  2,902 
 Allowance for loan losses  (14,577)  (14,111)  (13,385)  (12,524)  (11,565)
 Loans, net  1,454,167   1,355,482   1,340,725   1,285,388   960,282 
 Premises and equipment, net  5,452   5,778   5,933   4,709   3,427 
 Bank owned life insurance  23,920   23,718   23,577   23,434   23,284 
 Goodwill and core deposit intangible  7,544   7,554   7,564   7,575   7,585 
 Accrued interest receivable and other assets 37,620   39,637   40,152   41,528   37,950 
 Total assets $1,947,588  $1,905,779  $1,972,751  $1,910,426  $1,207,482 
            
 LIABILITIES           
 Deposits:          
 Demand noninterest-bearing $742,574  $673,100  $633,726  $643,354  $403,248 
 Demand interest-bearing  33,022   34,869   32,680   28,769   21,083 
 Money market and savings  670,517   623,603   582,953   549,084   459,712 
 Time  183,602   200,634   187,873   164,495   144,818 
 Total deposits  1,629,715   1,532,206   1,437,232   1,385,702   1,028,861 
            
 Junior subordinated debt securities  24,999   24,994   24,990   4,986   4,981 
 Other borrowings  134,819   189,043   352,703   364,703   22,000 
 Accrued interest payable and other liabilities 18,877   23,126   23,231   21,370   20,447 
 Total liabilities  1,808,410   1,769,369   1,838,156   1,776,761   1,076,289 
            
 SHAREHOLDERS' EQUITY          
 Common stock  108,431   107,948   107,776   107,241   106,790 
 Retained earnings  30,629   27,821   26,036   25,541   23,991 
 Accumulated other comprehensive (loss)  118   641   783   883   412 
 Total shareholders' equity  139,178   136,410   134,595   133,665   131,193 
 Total liabilities and shareholders' equity $1,947,588  $1,905,779  $1,972,751  $1,910,426  $1,207,482 
    -   -   -   -   - 
 CAPITAL ADEQUACY          
 Tier I leverage ratio  7.46%  7.49%  7.84%  8.13%  10.66%
 Tier I risk-based capital ratio  9.47%  10.11%  10.57%  11.27%  10.62%
 Total risk-based capital ratio  12.34%  13.22%  13.80%  12.87%  12.07%
 Total equity/ total assets  7.15%  7.16%  6.82%  7.00%  10.87%
 Book value per share $16.99  $16.69  $16.52  $16.43  $16.15 
            
 Common shares outstanding  8,189,598   8,171,734   8,149,678   8,133,457   8,121,848 



               
 CALIFORNIA BANCORP AND SUBSIDIARY 
 INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED) 
 (Dollars in Thousands) 
               
               
               
               
     Three months ended March 31,
    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) $1,415,506 4.18% $14,584  $1,375,664 4.14% $14,305 
 Federal funds sold  369,223 0.10%  88   480,790 0.11%  131 
 Investment securities  54,708 2.67%  360   54,202 2.29%  312 
 Total interest earning assets  1,839,437 3.31%  15,032   1,910,656 3.07%  14,748 
              
 Noninterest-earning assets:             
 Cash and due from banks  23,033      20,616     
 All other assets (2)  60,269      62,389     
 TOTAL $1,922,739     $1,993,661     
               
 LIABILITIES AND             
 SHAREHOLDERS' EQUITY             
 Interest-bearing liabilities:             
 Deposits:             
 Demand $34,512 0.13% $11  $33,674 0.13% $11 
 Money market and savings  644,740 0.61%  972   604,578 0.74%  1,118 
 Time  199,953 0.42%  208   200,606 0.46%  230 
 Other  192,803 1.06%  505   318,570 0.78%  626 
 Total interest-bearing liabilities  1,072,008 0.64%  1,696   1,157,428 0.68%  1,985 
               
 Noninterest-bearing liabilities:             
 Demand deposits  689,965      677,583     
 Accrued expenses and             
 other liabilities  23,351      23,466     
 Shareholders' equity  137,415      135,184     
 TOTAL $1,922,739     $1,993,661     
               
 Net interest income and margin (3)   2.94% $13,336    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 deferred loan fees of $1.2 million and $1.0 million, respectively. 
 (2) Other noninterest-earning assets includes the allowance for loan losses of $14.2 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) 
               
               
               
               
        Three months ended March 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) $1,415,506 4.18% $14,584 $952,303 4.98% $11,783 
 Federal funds sold  369,223 0.10%  88  96,834 1.37%  329 
 Investment securities  54,708 2.67%  360  28,294 2.72%  191 
 Total interest earning assets  1,839,437 3.31%  15,032  1,077,431 4.59%  12,303 
              
 Noninterest-earning assets:             
 Cash and due from banks  23,033      21,729     
 All other assets (2)  60,269      68,643     
 TOTAL $1,922,739     $1,167,803     
               
 LIABILITIES AND             
   SHAREHOLDERS' EQUITY             
 Interest-bearing liabilities:             
 Deposits:             
 Demand $34,512 0.13% $11 $23,747 0.12% $7 
 Money market and savings  644,740 0.61%  972  476,493 1.19%  1,412 
 Time  199,953 0.42%  208  124,705 1.85%  575 
 Other  192,803 1.06%  505  15,070 3.39%  127 
 Total interest-bearing liabilities  1,072,008 0.64%  1,696  640,015 1.33%  2,121 
               
 Noninterest-bearing liabilities:             
 Demand deposits  689,965      375,039     
 Accrued expenses and             
 other liabilities  23,351      21,406     
 Shareholders' equity  137,415      131,343     
 TOTAL $1,922,739     $1,167,803     
               
 Net interest income and margin (3)   2.94% $13,336   3.80% $10,182 
               
               
               
               
 (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 $1.2 million and $(294,000), respectively.
 (2) Other noninterest-earning assets includes the allowance for loan losses of 14.2 million and $11.1 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: Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 
             
 Net interest income $13,336  $12,763 $11,188 $10,785 $10,182 
 Non-interest income  921   916  1,028  777  1,290 
 Total revenue $14,257  $13,679 $12,216 $11,562 $11,472 
             
             
             
             
             
             
 PPP RELATED DEFERRED FEES AND COSTS:      AmortizationDeferred 
   Deferred Balance at Origination of Deferred Balance 
   2020 Program2021 ProgramTotal Balance Remaining 
             
 PPP fees $9,086  $3,881 $12,967 $6,518 $6,449 
 PPP capitalized loan origination costs  2,451   536  2,987  1,679 $1,308 
 Net PPP fees $6,635  $3,345 $9,980 $4,839 $5,141 
             
             
             
 IMPACT OF PPP ACTIVITY REFLECTED IN Amortization of Deferred Balance  
     NET INTEREST INCOME: Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 
             
 PPP fees $2,222  $2,083 $1,114 $1,099 $- 
 PPP capitalized loan origination costs  633   527  266  253  - 
 Net PPP fees $1,589  $1,556 $848 $846 $- 
             
             
             
             
             
             
 NON-INTEREST EXPENSE: Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 
             
 Total non-interest expense $10,080  $10,416 $10,545 $6,440 $10,407 
 Total capitalized loan origination costs  1,513   1,198  986  4,797  912 
 Total operating expenses, before capitalization           
 of loan origination costs $11,593  $11,614 $11,531 $11,237 $11,319 
             
             
             
             
             
             
 GROSS LOANS: 03/31/21 12/31/20 09/30/20 06/30/20 03/31/20 
             
 Gross loans $1,470,313  $1,369,070 $1,355,164 $1,299,481 $968,945 
 PPP loans  353,426   306,373  362,088  361,632  - 
 Gross loans, excluding PPP loans $1,116,887  $1,062,697 $993,076 $937,849 $968,945