California BanCorp Reports $16.9 Million Net Income in Latest Quarterly Filing

California BanCorp reported significant financial performance improvements in its latest quarterly filing, with net income for the three months ended March 31, 2025, reaching $16.9 million, or $0.52 per diluted share. This marks a substantial increase from the $4.9 million, or $0.26 per diluted share, reported in the same period last year. The company's net interest income also saw a notable rise, totaling $42.3 million, compared to $20.5 million in the prior year, driven by higher average interest-earning assets following the merger with California Bank of Commerce (CALB) in July 2024.

In comparison to the previous fiscal period, California BanCorp's total assets decreased slightly to $3.98 billion from $4.03 billion at the end of December 2024. This decline was primarily attributed to a reduction in loans, which fell by $82.9 million, partially offset by an increase in cash and cash equivalents. Total liabilities also decreased to $3.45 billion, down from $3.52 billion, largely due to a $56.3 million drop in total deposits. However, shareholders' equity increased to $531.4 million, up from $511.8 million, reflecting the company's strong earnings and a decrease in unrealized losses on available-for-sale debt securities.

Strategically, the merger with CALB has expanded California BanCorp's footprint into Northern California, enhancing its market share and operational scale. The merger added one full-service bank branch and four loan production offices to the existing network, which now comprises 14 branches. The company has also been actively managing its loan portfolio, with a focus on commercial real estate, which represented 57.0% of total loans as of March 31, 2025. The allowance for credit losses (ACL) decreased to $48.3 million, reflecting improved credit quality and a reversal of credit losses during the quarter.

Operationally, California BanCorp reported a total of 290 full-time equivalent employees, an increase from 200 in the previous year, driven by the merger. The company also experienced a decrease in nonperforming loans, which fell to $22.8 million from $26.5 million at the end of December 2024. The efficiency ratio improved to 55.6%, down from 68.4% in the same quarter last year, indicating enhanced operational efficiency.

Looking ahead, California BanCorp remains cautiously optimistic about its growth prospects, despite potential economic headwinds such as rising interest rates and inflation. The company is focused on maintaining a strong capital position and managing its liquidity effectively. The management continues to monitor macroeconomic variables and is prepared to adapt its strategies in response to changing market conditions.