California BanCorp reported a net income of $15.7 million, or $0.48 per diluted share, for the third quarter of 2025, a significant recovery from a net loss of $16.5 million, or $(0.59) per diluted share, in the same quarter of the previous year. This turnaround was largely attributed to a $5.6 million increase in net interest income, driven by higher average interest-earning assets following the merger with California Bank of Commerce (CALB) in July 2024. For the nine months ended September 30, 2025, net income reached $46.6 million, compared to a net loss of $11.3 million for the same period in 2024.
The company’s total assets increased to $4.10 billion as of September 30, 2025, up from $4.03 billion at the end of 2024. This growth was primarily fueled by a $171.1 million increase in cash and cash equivalents and a $67.4 million rise in available-for-sale debt securities. However, loans held for investment decreased by $159.4 million to $2.99 billion, reflecting the company's strategy to reduce exposure to criticized loans and improve credit quality. The allowance for loan losses also decreased to $41.3 million from $50.5 million at year-end 2024, indicating improved asset quality.
In terms of operational metrics, California BanCorp's total deposits rose to $3.46 billion, an increase of $60.9 million from December 31, 2024. The bank's noninterest-bearing demand deposits represented 35.8% of total deposits, while the cost of deposits remained stable at 1.59%. The company also reported a decrease in nonperforming loans to $15.6 million, down from $26.4 million at the end of 2024, reflecting effective management of credit risk.
Strategically, the merger with CALB has expanded California BanCorp's footprint into Northern California, enhancing its market share and operational scale. The company retained all banking offices from both institutions, adding CALB's full-service branch and loan production offices to its existing network. Looking ahead, management remains cautious about potential economic challenges, including interest rate volatility and inflation, but believes the bank is well-positioned to navigate these uncertainties while maintaining a strong capital position. The company’s leverage capital ratio stood at 11.17%, and its total risk-based capital ratio was 14.74% as of September 30, 2025, indicating compliance with regulatory capital requirements.
About California BanCorp CA
California Bancorp is a community-focused bank holding company that operates California Bank of Commerce, offering commercial and retail banking services. Its core activities include providing loans (real estate, construction, C&I, SBA, consumer), deposit products, and treasury services to small and medium-sized businesses and individuals. The company emphasizes personalized relationship banking, community engagement, and strategic growth through acquisitions and branch expansion across California.
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