Southern California Bancorp (“us,” “we,” “our,” or the “Company”)
(NASDAQ: BCAL), the holding company for Bank of Southern
California, N.A. (the “Bank”) announces its consolidated financial
results for the fourth quarter and full year of 2023.
Southern California Bancorp reported net income
of $4.4 million for the fourth quarter of 2023, or $0.24 per
diluted share, compared to net income of $8.5 million, or $0.46 per
diluted share in the fourth quarter of 2022, and net income of $6.6
million, or $0.35 per diluted share in the third quarter of 2023.
The Company reported net income of $25.9 million for the full year
of 2023, or $1.39 per diluted share, compared to net income of
$16.1 million, or $0.88 per diluted share for the full year of
2022.
“I’m pleased to report our 2023 full year
results show strong growth over 2022, with 2023 net income of $25.9
million increasing $9.8 million or 61% from the prior year, and
earnings per share of $1.39 increasing 57% over the prior year,”
said David Rainer, Chairman and CEO of Southern California Bancorp
and Bank of Southern California. “Our return on average assets of
1.12% grew significantly from 0.70% in the prior year and our net
interest margin expanded to 4.33% from 4.06%, despite pressure from
the industry-wide increase in the cost of funds, the effects of
which were somewhat offset by the Bank’s increased loan yield of
5.94% for 2023, up from 5.02% for the prior year.
“The highlights of our fourth quarter results
include total loan growth of $29.4 million and an increase in
tangible book value per share (non-GAAP1) of $0.48 to $13.56, an
increase of 3.7% from the prior quarter. Our fourth quarter results
were impacted by a $1 million pre-tax loss on the sale of
securities yielding 2.4%, the proceeds of which were redeployed
into securities yielding 4.7%, which will add to future interest
income and provide some protection if interest rates decrease. The
fourth quarter was also impacted by a $1.3 million charge-off for a
nonaccrual loan we reported in the prior quarter, which was the
result of a new appraisal of the collateral backing the loan.
“We are very excited about the merger with
California BanCorp and California Bank of Commerce, which was
jointly announced this morning. We believe it will be beneficial
for both companies’ shareholders, as well as our clients and
employees, and I look forward to working with California BanCorp
Chief Executive Officer Steven Shelton and his team as we integrate
our operations into one organization.”
Fourth Quarter 2023 Highlights
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Net income of $4.4 million, compared with
$6.6 million in the prior quarter |
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Diluted earnings per share of $0.24, compared
with $0.35 in the prior quarter |
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Net interest margin of 4.05%, compared with
4.23% in the prior quarter; average loan yield of 6.08% compared
with 5.97% in the prior quarter |
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Return on average assets of 0.75%, compared
with 1.12% in the prior quarter |
1 Reconciliations of the non–U.S. generally accepted
accounting principles (“GAAP”) measures are set forth at the end of
this press release.
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Return on average common equity of 6.21%,
compared with 9.38% in the prior quarter |
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Efficiency ratio
(non-GAAP1) of
68.3%, compared with 61.4% in the prior quarter |
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Tangible book value per common share (“TBV”)
(non-GAAP1) of
$13.56 at December 31, 2023, up $0.48 from $13.08 at September 30,
2023 |
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Total assets of $2.36 billion at December 31,
2023, compared with $2.31 billion at September 30, 2023 |
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Total loans, including loans held for sale of
$1.96 billion at December 31, 2023, compared with $1.94 billion at
September 30, 2023 |
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Nonperforming assets to total assets ratio of
0.55% at December 31, 2023, compared with 0.62% at September 30,
2023 |
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Total deposits of $1.94 billion at December
31, 2023, decreased $40.3 million or 2.0%, compared with $1.98
billion at September 30, 2023 |
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Noninterest-bearing demand deposits were
$675.1 million at December 31, 2023, representing 34.7% of total
deposits, compared with $736.0 million, or 37.1% of total deposits
at September 30, 2023 |
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Cost of deposits was 1.81%, compared with
1.56% in the prior quarter |
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Cost of funds was 1.95%, compared with 1.62%
in the prior quarter |
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Bank’s capital exceeds minimums to be
“well-capitalized,” the highest
regulatory capital category |
Full Year 2023 Highlights
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Net income increased to $25.9 million, up
$9.8 million, or 60.8% from the prior year |
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Diluted earnings per share of $1.39, up
$0.51, or 57.2% from the prior year |
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Total loan interest income increased to
$114.0 million, up $27.6 million or 31.9% from the prior year |
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Net interest margin of 4.33% for 2023,
compared with 4.06% in the prior year; average loan yield was
5.94%, up from 5.02% in the prior year |
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Efficiency ratio
(non-GAAP1) of
61.3%, improved from 69.5% in the prior year |
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Provision for credit losses of $915 thousand
under the Current Expected Credit Loss (“CECL”) model, the
provision was $6.0 million under the incurred loss model for the
year ended December 31, 2022 |
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Total assets of $2.36 billion, up $76.3
million or 3.3% from December 31, 2022 |
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Total loans, including loans held for sale,
increased to $1.96 billion, up $58.0 million from
December 31, 2022 |
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Total deposits of $1.94 billion, up $11.7
million from December 31, 2022 |
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Noninterest bearing demand deposits were
$675.1 million, representing 34.7% of total deposits, compared to
$923.9 million, or 47.8% of total deposits at December 31,
2022 |
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Cost of deposits was 1.37%, up from 0.23% in
the prior year |
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Tangible book value per common share (“TBV”)
(non-GAAP1) of
$13.56 at December 31, 2023, up $1.24 from December 31, 2022 |
Fourth Quarter Operating Results
Net Income
Net income for the fourth quarter of 2023 was
$4.4 million, or $0.24 per diluted share, compared with net income
of $6.6 million, or $0.35 per diluted share in the third quarter of
2023. Pre-tax, pre-provision income (non-GAAP) for the fourth
quarter was $7.1 million, a decrease of $2.2 million or 23.4% from
the prior quarter.
Net Interest Income and Net Interest
Margin
Net interest income for the fourth quarter of
2023 was $22.6 million, compared to $23.3 million in the prior
quarter. The decrease in net interest income was primarily due to a
$1.8 million increase in total interest expense, partially offset
by a $1.1 million increase in total interest and dividend income in
the fourth quarter of 2023 as compared to the prior quarter. During
the fourth quarter of 2023, loan interest income increased $1.0
million, total debt securities income increased $43 thousand, and
interest and dividend income from other financial institutions
increased $51 thousand. The increase in interest income was due to
a number of factors: a higher average total loan balance from
organic loan growth; a change in the interest-earning asset mix;
and higher loan yields resulting from the benefit of variable rate
interest-earning loans repricing for the first time since the start
of the rising interest rate environment. Additionally, in the prior
quarter we recorded a reversal of a non-accrual loan’s interest
income of $264 thousand for which there was no significant reversal
of interest income in the current quarter. Average interest-earning
assets increased $25.5 million, the result of a $30.0 million
increase in average total loans, a $5.9 million increase in average
deposits in other financial institutions, a $1.1 million increase
in average total debt securities, and a $29 thousand increase in
average restricted stock investments and other bank stock,
partially offset by a $11.6 million decrease in average Fed funds
sold/resale agreements. The increase in interest expense for the
fourth quarter of 2023 was primarily due to a $639 thousand
increase in interest expense on Federal Home Loan Bank (FHLB)
borrowings, and a $1.1 million increase in interest expense on
interest-bearing deposits, the result of a $27.6 million increase
in average interest-bearing deposits, coupled with a 31 basis point
increase in interest-bearing deposit costs.
Net interest margin for the fourth quarter of
2023 was 4.05%, compared with 4.23% in the prior quarter. The
decrease was primarily related to a 33 basis point increase in the
cost of funds, partially offset by a 13 basis point increase in the
total interest-earning assets yield, which was the result of higher
market interest rates and a change in the Bank’s average
interest-earning asset mix. The yield on total average earning
assets in the fourth quarter of 2023 was 5.85%, compared with 5.72%
in the prior quarter. The yield on average total loans in the
fourth quarter of 2023 was 6.08%, an increase of 11 basis points
from 5.97% in the prior quarter. The yield on average total loans
in the prior quarter included the impact of the reversal of a
non-accrual loan’s interest, which decreased the overall loan yield
by 5 basis points. There was no significant reversal of interest
income in the fourth quarter of 2023.
Cost of funds for the fourth quarter of 2023 was
195 basis points, an increase of 33 basis points from 162 basis
points in the prior quarter. The increase was primarily driven by a
31 basis point increase in the cost of interest-bearing deposits, a
13 basis point increase in the cost of FHLB borrowings, an increase
in average interest-bearing deposits, and a decrease in average
noninterest-bearing deposits. Average noninterest-bearing demand
deposits decreased $47.0 million to $721.2 million and represented
36.8% of total average deposits for the fourth quarter of 2023,
compared with $768.1 million and 38.8%, respectively, in the prior
quarter; average interest-bearing deposits increased $27.6 million
to $1.24 billion during the fourth quarter of 2023. The total cost
of deposits in the fourth quarter of 2023 was 181 basis points, an
increase of 25 basis points from 156 basis points in the prior
quarter.
Average total borrowings increased $44.7 million
to $74.2 million for the fourth quarter of 2023, primarily due to
an increase of $44.6 million in average FHLB borrowings during the
quarter. The average cost of total borrowings was 5.73% for the
fourth quarter of 2023, down from 5.82% in the prior quarter.
Provision for Credit Losses
The Company recorded a provision for credit
losses of $824 thousand in the fourth quarter of 2023, compared to
a reversal of provision for credit losses of $96 thousand in the
prior quarter. The provision for credit losses in the fourth
quarter of 2023 included a $307 thousand negative provision for
unfunded loan commitments primarily due to lower unfunded loan
commitments. Total unfunded loan commitments decreased $79.6
million to $410.8 million at December 31, 2023, from $490.4 million
at September 30, 2023. The provision for credit losses for the loan
portfolio in the fourth quarter of 2023 was $1.1 million, an
increase of $929 thousand from $202 thousand in the prior quarter.
The increase was driven primarily by an increase in net
charge-offs, loan growth, an increase in substandard accruing loans
and changes in the portfolio mix, partially offset by an
improvement in the reasonable and supportable forecast, primarily
related to the economic outlook from the Federal Reserve’s actions
to control inflation, and a decrease in special mention loans. The
Company’s management continues to monitor macroeconomic variables
related to increasing interest rates, inflation and the concerns of
an economic downturn, and believes it is appropriately provisioned
for the current environment.
Noninterest (Loss) Income
The Company recorded a loss on noninterest
income of $102 thousand in the fourth quarter of 2023, a decrease
of $917 thousand compared to total noninterest income of $815
thousand in the third quarter of 2023. In the fourth quarter of
2023, the Company recorded a loss on sale of available-for-sale
debt securities of $1.0 million in order to redeploy the proceeds
into higher-yielding available-for-sale debt securities, for which
there was no comparable transaction in the third quarter of 2023.
There was no gain on SBA 7A loan sales in the fourth quarter and
third quarter of 2023 primarily due to unattractive pricing in the
secondary market.
Noninterest Expense
Total noninterest expense for the fourth quarter
of 2023 was $15.3 million, an increase of $558 thousand from total
noninterest expense of $14.8 million in the prior quarter. In the
fourth quarter of 2023, occupancy and equipment expenses increased
by $99 thousand, legal, audit and professional fees increased by
$563 thousand, and other expenses increased by $125 thousand,
partially offset by decreases in salaries and employee benefits of
$138 thousand.
The $99 thousand increase in occupancy and
equipment expenses was due primarily to an impairment charge
related to the right-of-use asset associated with a Company lease.
The $563 thousand increase in legal, audit and professional fees
was due primarily to an increase in legal expenses and consulting
expenses related to compliance projects and loan review projects.
The $125 thousand increase in other expense was due primarily to
the increase in loan related expense. The $138 thousand decrease in
salaries and benefits was due primarily to a decrease in
stock-based compensation expense resulting from the forfeitures for
employee separation, partially offset by a decrease in the deferred
loan origination costs in the fourth quarter of 2023.
Efficiency ratio (non-GAAP1) for the fourth
quarter of 2023 was 68.3%, compared to 61.4% in the prior
quarter.
Income Tax
In the fourth quarter of 2023, the Company’s
income tax expense was $1.9 million, compared with $2.8 million in
the third quarter of 2023. The effective rate was 29.9% for the
fourth quarter of 2023 and 30.2% for the third quarter of 2023. The
effective rate was 29.7% for the year ended December 31, 2023. The
decrease in the effective tax rate for the fourth quarter of 2023
was primarily attributable to the impact of the vesting and
exercise of equity awards combined with changes in the Company’s
stock price over time, and other deferred tax related
adjustments.
Balance Sheet
Assets
Total assets at December 31, 2023 were $2.36
billion, an increase of $46.6 million or 2.0% from September 30,
2023. The increase in total assets from the prior quarter was
primarily related to a $29.4 million increase in total loans,
including loans held for sale, a $18.2 million increase in
available-for-sale debt securities, and a $9.9 million increase in
income tax receivable recorded in accrued interest and other
assets, partially offset by a $8.3 million decrease in cash and
cash equivalents, and a $1.4 million decrease in deferred taxes,
net.
Loans
Total loans held for investment were $1.96
billion at December 31, 2023, compared to $1.93 billion at
September 30, 2023, with fourth quarter of 2023 new originations of
$34.0 million and net advances of $40.1 million, partially offset
by payoffs of $45.9 million, and a charge-off of $1.3 million.
Total loans secured by real estate increased by $16.1 million, with
construction and land development loans increasing by $6.2 million,
commercial real estate and other loans increasing by $4.6 million,
and multifamily loans increasing by $3.1 million, 1-4 family
residential loans increasing by $2.2 million, and consumer loans
increasing by $1.6 million. The Company had $7.3 million in SBA 7A
loans held for sale at December 31, 2023, compared to $4.8 million
at September 30, 2023.
Deposits
Total deposits at December 31, 2023 were $1.94
billion, a decrease of $40.3 million from September 30, 2023.
Noninterest-bearing demand deposits at December 31, 2023, were
$675.1 million, or 34.7% of total deposits, compared with $736.0
million, or 37.1% of total deposits at September 30, 2023. At
December 31, 2023, total interest-bearing deposits were $1.27
billion, compared to $1.25 billion at September 30, 2023. At
December 31, 2023, total brokered time deposits were $107.8
million, compared to $84.5 million at September 30, 2023. Given the
nature of the Company’s commercial banking model, at December 31,
2023, approximately 42% of total deposits exceeded the FDIC
insurance limits. The Company offers the Insured Cash Sweep (ICS)
product, providing customers with FDIC insurance coverage at ICS
network institutions. At December 31, 2023, ICS deposits were
$274.1 million, or 14.1% of total deposits, compared to $252.7
million, or 12.7% of total deposits at September 30, 2023.
Federal Home Loan Bank (“FHLB”) and
Liquidity
At December 31, 2023, the Company had overnight
FHLB borrowings of $85.0 million, a $77.0 million increase from
September 30, 2023. There were no outstanding Federal Reserve
Discount Window borrowings at December 31, 2023 or September 30,
2023, and the Company has not participated in the Federal Reserve
Bank Term Funding Program.
At December 31, 2023, the Company had available
borrowing capacity from the FHLB secured line of credit of
approximately $339.2 million and available borrowing capacity from
the Federal Reserve Discount Window of approximately $141.6
million. The Company also had available borrowing capacity from
three unsecured credit lines from correspondent banks of
approximately $75.0 million at December 31, 2023, with no
outstanding borrowings. Total available borrowing capacity was
$555.8 million at December 31, 2023. Additionally, the Company had
unpledged liquid securities at fair value of approximately $130.0
million and cash and cash equivalents of $86.8 million at December
31, 2023.
Asset Quality
Total non-performing assets decreased to $13.0
million, or 0.55% of total assets at December 31, 2023, compared
with $14.3 million, or 0.62% of total assets at September 30, 2023.
The decrease from September 30, 2023, was primarily due to a $1.3
million charge-off for a non-accrual multifamily loan with a net
carrying value before charge-off of $14.3 million during the fourth
quarter of 2023. The non-accrual multifamily loan added to
non-accrual loans during the third quarter of 2023 is
collateralized by three investment multifamily properties located
in the city of Santa Monica, California. A court appointed receiver
is in place and the Company is aggressively pursuing the resolution
of this matter. During the fourth quarter of 2023, the Company
received the updated appraisals for the three multifamily
properties; the combined “As-Is” collateral value, after accounting
for estimated selling costs, the estimated net collateral value was
$1.3 million lower than the subject loan’s net carrying value
resulting in a partial charge-off in the fourth quarter of 2023.
Special mention loans decreased by $289 thousand during the fourth
quarter of 2023 to $3.0 million at December 31, 2023, due mostly to
two commercial and industrial loans from one relationship with a
net carrying value of $425 thousand that were upgraded from special
mention loans to pass loans. Substandard accruing loans increased
by $3.0 million during the fourth quarter of 2023 to $6.5 million
at December 31, 2023 due mostly to a commercial and industrial loan
from one relationship with a net carrying value of $3.1 million
that was downgraded from a pass loan, partially offset by payoffs
and net paydowns.
The Company had no loans over 90 days past due
that were accruing interest at December 31, 2023, and September 30,
2023.
There were $19 thousand of loan delinquencies
(30-89 days past due) related to a Paycheck Protection Program loan
at December 31, 2023, compared to $96 thousand loan delinquencies
(30-89 days past due) at September 30, 2023.
The allowance for credit losses, which is
comprised of allowance for loan losses (ALL) and reserve for
unfunded loan commitments, totaled $23.5 million, or 1.20% of total
loans held for investment at December 31, 2023, compared to $23.9
million, or 1.24% at September 30, 2023. The $443 thousand decrease
in the allowance included a $1.1 million provision for credit
losses for the loan portfolio, partially offset by a net charge-off
of $1.3 million, and a $307 thousand negative credit provision for
unfunded loan commitments for the quarter ended December 31,
2023.
The allowance for loan losses was $22.6 million,
or 1.15% of total loans held for investment at December 31, 2023,
compared to $22.7 million, or 1.18% at September 30, 2023.
Capital
Tangible book value (non-GAAP) per common share
at December 31, 2023, was $13.56, compared with $13.08 at September
30, 2023. In the fourth quarter of 2023, tangible book value was
primarily impacted by net income, stock-based compensation expense,
and a decrease in net of tax unrealized losses on
available-for-sale debt securities. Other comprehensive losses
related to unrealized losses, net of taxes, on available-for-sale
debt securities decreased by $4.7 million to $4.5 million at
December 31, 2023 from $9.2 million at September 30, 2023. The
decrease in the unrealized losses, net of taxes, on
available-for-sale debt securities was primarily attributable to
factors other than credit related, including changes in interest
rates driven by the Federal Reserve’s policy to fight inflation,
and general volatility in credit market conditions. Tangible common
equity (non-GAAP) as a percent of total tangible assets (non-GAAP)
at December 31, 2023 increased to 10.73% from 10.53% in the prior
quarter, and unrealized losses as a percent of tangible common
equity (non-GAAP) at December 31, 2023 decreased to 1.8% from 3.9%
in the prior quarter.
The Bank’s leverage capital ratio and total
risk-based capital ratio were 11.65% and 13.51%, respectively, at
December 31, 2023. The Bank elected the three-year phase-in period
under the regulatory capital rules, which allow a phase-in of the
Day 1 CECL transition adjustment to the regulatory capital at 25%
per year over a three-year transition period.
ABOUT SOUTHERN CALIFORNIA BANCORP AND
BANK OF SOUTHERN CALIFORNIA, N.A.
Southern California Bancorp (NASDAQ: BCAL) is a
registered bank holding company headquartered in San Diego,
California. Bank of Southern California, N.A., a national banking
association chartered under the laws of the United States (the
“Bank”) and regulated by the Office of Comptroller of the Currency,
is a wholly owned subsidiary of Southern California Bancorp.
Established in 2001 and headquartered in San Diego, California, the
Bank offers a range of financial products and services to
individuals, professionals, and small- to medium-sized businesses
through its 13 branch offices serving Orange, Los Angeles,
Riverside, San Diego, and Ventura counties, as well as the Inland
Empire. The Bank’s solutions-driven, relationship-based approach to
banking provides accessibility to decision makers and enhances
value through strong partnerships with its clients. Additional
information is available at www.banksocal.com.
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS
In addition to historical information, this
release includes 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
regarding expectations, plans or objectives for future operations,
products or services, loan recoveries and the proposed merger (the
“Merger”) of the Company and California
BanCorp (“CBC”), 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,” “projection,” “optimistic,” and “outlook,” and
variations of these words and similar expressions.
Some factors that could cause actual results to
differ materially from historical or expected results include,
among others: the risk factors discussed in the Company’s
Registration Statement on Form 10, as amended, filed with the
Securities and Exchange Commission (“SEC”); changes in real estate
markets and general economic conditions, either nationally or
locally in the areas in which the Company conducts business; the
impact on financial markets from geopolitical conflicts; inflation,
interest rate, market and monetary fluctuations; increases in
competitive pressures among financial institutions and businesses
offering similar products and services; higher than anticipated
defaults in the Company’s loan portfolio; changes in management’s
estimate of the adequacy of the allowance for credit losses;
legislative or regulatory changes or changes in accounting
principles, policies or guidelines; the impacts of recent bank
failures; the occurrence of any event, change or other
circumstances that could give rise to the right of the Company or
CBC to terminate their agreement with respect to the Merger; the
outcome of any legal proceedings that may be instituted against the
Company or CBC; delays in completing the Merger; the failure to
obtain necessary regulatory approvals (and the risk that such
approvals impose conditions that could adversely affect the
combined company or the expected benefits of the Merger); the
failure to obtain shareholder approvals or to satisfy any of the
other conditions to the Merger on a timely basis or at all; the
ability to complete the Merger and integration of the Company and
CBC successfully; costs being greater than anticipated; cost
savings being less than anticipated; the risk that the Merger
disrupts the business of the Company, CBC or both; difficulties in
retaining senior management, employees or customers; and other
factors that may affect the future results of the Company and
CBC.
Additional information regarding these and other
risks and uncertainties to which our business and future financial
performance are subject is contained in the Company’s Registration
Statement on Form 10, as amended and other documents the Company
files with the SEC from time to time.
Any forward-looking statement made in this
release is based only on information currently available to
management and speaks only as of the date on which it is made. The
Company does not undertake, and specifically disclaims any
obligation, to update any forward-looking statements to reflect
occurrences or unanticipated events or circumstances after the date
of such statements or to conform such forward-looking statements to
actual results or to changes in its opinions or expectations,
except as required by law.
ADDITIONAL INFORMATION AND WHERE TO FIND
IT
In connection with the Merger, the Company will
file with the SEC a Registration Statement on Form S-4 that will
include a joint proxy statement of the Company and CBC and a
prospectus of the Company, as well as other relevant documents
concerning the proposed transaction. Certain matters in respect of
the Merger will be submitted to the Company’s and CBC’s
shareholders for their consideration. This communication does not
constitute an offer to sell or the solicitation of an offer to buy
any securities or a solicitation of any vote or approval, nor shall
there be any sale of securities, in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such
jurisdiction.
INVESTORS AND SHAREHOLDERS ARE URGED TO READ THE
REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS
REGARDING THE MERGER WHEN THEY BECOME AVAILABLE AND ANY OTHER
RELEVANT DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE MERGER
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
Investors will be able to obtain a free copy of
the definitive joint proxy statement/prospectus, as well as other
filings containing information about the Company and CBC, without
charge, at the SEC’s website, www.sec.gov. Copies of the joint
proxy statement/prospectus and the filings with the SEC that will
be incorporated by reference in the joint proxy
statement/prospectus can also be obtained, without charge, in the
“Investor Relations” section of the Company’s website at
www.banksocal.com (for the Company’s filings) and in the “Investor
Relations” section of CBC’s website,
www.californiabankofcommerce.com (for CBC’s filings).
PARTICIPANTS IN THE
SOLICITATION
The Company, CBC and certain of their respective
directors and executive officers may be deemed to be participants
in the solicitation of proxies from the shareholders of the Company
and CBC in connection with the Merger. Information regarding the
Company’s directors and executive officers and their ownership of
Company common stock is available in the Company’s definitive proxy
statement for its 2023 annual meeting of shareholders filed with
the SEC on June 13, 2023 and other documents filed by the Company
with the SEC. Information regarding CBC’s directors and executive
officers and their ownership of CBC common stock is available in
CBC’s definitive proxy statement for its 2023 annual meeting of
shareholders filed with the SEC on April 20, 2023 and other
documents filed by CBC with the SEC. Other information regarding
the participants in the proxy solicitation and their ownership of
common stock will be contained in the joint proxy
statement/prospectus relating to the Merger. Free copies of these
documents may be obtained as described in the preceding
paragraph.
Southern California Bancorp and
SubsidiaryFinancial Highlights (Unaudited)
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At or for theThree Months
Ended |
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At or for theYear Ended |
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December 31,2023 |
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|
September 30,2023 |
|
|
December 31,2022 |
|
|
December 31,2023 |
|
|
December 31,2022 |
|
EARNINGS |
|
($ in thousands except share and per share data) |
|
Net interest income |
|
$ |
22,559 |
|
|
$ |
23,261 |
|
|
$ |
25,269 |
|
|
$ |
94,138 |
|
|
$ |
87,786 |
|
Provision for (reversal of) credit losses |
|
$ |
824 |
|
|
$ |
(96 |
) |
|
$ |
750 |
|
|
$ |
915 |
|
|
$ |
5,956 |
|
Noninterest (loss) income |
|
$ |
(102 |
) |
|
$ |
815 |
|
|
$ |
188 |
|
|
$ |
3,379 |
|
|
$ |
3,675 |
|
Noninterest expense |
|
$ |
15,339 |
|
|
$ |
14,781 |
|
|
$ |
13,112 |
|
|
$ |
59,746 |
|
|
$ |
63,522 |
|
Income tax expense |
|
$ |
1,882 |
|
|
$ |
2,835 |
|
|
$ |
3,121 |
|
|
$ |
10,946 |
|
|
$ |
5,870 |
|
Net income |
|
$ |
4,412 |
|
|
$ |
6,556 |
|
|
$ |
8,474 |
|
|
$ |
25,910 |
|
|
$ |
16,113 |
|
Pre-tax pre-provision income (1) |
|
$ |
7,118 |
|
|
$ |
9,295 |
|
|
$ |
12,345 |
|
|
$ |
37,771 |
|
|
$ |
27,939 |
|
Adjusted pre-tax pre-provision income (1) |
|
$ |
7,118 |
|
|
$ |
9,295 |
|
|
$ |
12,337 |
|
|
$ |
37,771 |
|
|
$ |
34,416 |
|
Diluted earnings per share |
|
$ |
0.24 |
|
|
$ |
0.35 |
|
|
$ |
0.46 |
|
|
$ |
1.39 |
|
|
$ |
0.88 |
|
Shares outstanding at period end |
|
|
18,369,115 |
|
|
|
18,309,282 |
|
|
|
17,940,283 |
|
|
|
18,369,115 |
|
|
|
17,940,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.75 |
% |
|
|
1.12 |
% |
|
|
1.46 |
% |
|
|
1.12 |
% |
|
|
0.70 |
% |
Adjusted return on average assets (1) |
|
|
0.75 |
% |
|
|
1.12 |
% |
|
|
1.45 |
% |
|
|
1.12 |
% |
|
|
0.90 |
% |
Return on average common equity |
|
|
6.21 |
% |
|
|
9.38 |
% |
|
|
13.21 |
% |
|
|
9.48 |
% |
|
|
6.44 |
% |
Adjusted return on average common equity (1) |
|
|
6.21 |
% |
|
|
9.38 |
% |
|
|
13.20 |
% |
|
|
9.48 |
% |
|
|
8.28 |
% |
Yield on total loans |
|
|
6.08 |
% |
|
|
5.97 |
% |
|
|
5.47 |
% |
|
|
5.94 |
% |
|
|
5.02 |
% |
Yield on interest earning assets |
|
|
5.85 |
% |
|
|
5.72 |
% |
|
|
5.14 |
% |
|
|
5.69 |
% |
|
|
4.33 |
% |
Cost of deposits |
|
|
1.81 |
% |
|
|
1.56 |
% |
|
|
0.51 |
% |
|
|
1.37 |
% |
|
|
0.23 |
% |
Cost of funds |
|
|
1.95 |
% |
|
|
1.62 |
% |
|
|
0.56 |
% |
|
|
1.46 |
% |
|
|
0.29 |
% |
Net interest margin |
|
|
4.05 |
% |
|
|
4.23 |
% |
|
|
4.62 |
% |
|
|
4.33 |
% |
|
|
4.06 |
% |
Efficiency ratio (1) |
|
|
68.30 |
% |
|
|
61.39 |
% |
|
|
51.51 |
% |
|
|
61.27 |
% |
|
|
69.45 |
% |
Adjusted efficiency ratio (1) |
|
|
68.30 |
% |
|
|
61.39 |
% |
|
|
51.54 |
% |
|
|
61.27 |
% |
|
|
62.37 |
% |
|
|
As of |
|
|
|
December 31,2023 |
|
|
September 30,2023 |
|
|
December 31,2022 |
|
CAPITAL |
|
|
($ in thousands except share and per share data) |
|
Tangible equity to tangible assets (1) |
|
|
10.73 |
% |
|
|
10.53 |
% |
|
|
9.84 |
% |
Book value (BV) per common share |
|
$ |
15.69 |
|
|
$ |
15.21 |
|
|
$ |
14.51 |
|
Tangible BV per common share (1) |
|
$ |
13.56 |
|
|
$ |
13.08 |
|
|
$ |
12.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses (ALL) |
|
$ |
22,569 |
|
|
$ |
22,705 |
|
|
$ |
17,099 |
|
Reserve for unfunded loan commitments |
|
$ |
933 |
|
|
$ |
1,240 |
|
|
$ |
1,310 |
|
Allowance for credit losses (ACL) |
|
$ |
23,502 |
|
|
$ |
23,945 |
|
|
$ |
18,409 |
|
ALL to total loans held for investment |
|
|
1.15 |
% |
|
|
1.18 |
% |
|
|
0.90 |
% |
ACL to total loans held for investment |
|
|
1.20 |
% |
|
|
1.24 |
% |
|
|
0.97 |
% |
Nonperforming loans |
|
$ |
13,004 |
|
|
$ |
14,272 |
|
|
$ |
41 |
|
Other real estate owned |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Nonperforming assets to total assets |
|
|
0.55 |
% |
|
|
0.62 |
% |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
END OF PERIOD
BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
Total loans, including loans held for sale |
|
$ |
1,964,791 |
|
|
$ |
1,935,364 |
|
|
$ |
1,906,800 |
|
Total assets |
|
$ |
2,360,252 |
|
|
$ |
2,313,649 |
|
|
$ |
2,283,927 |
|
Deposits |
|
$ |
1,943,556 |
|
|
$ |
1,983,857 |
|
|
$ |
1,931,905 |
|
Loans to deposits |
|
|
101.1 |
% |
|
|
97.6 |
% |
|
|
98.7 |
% |
Shareholders’ equity |
|
$ |
288,152 |
|
|
$ |
278,550 |
|
|
$ |
260,355 |
|
(1 |
) |
Non-GAAP measure. See – GAAP to
Non-GAAP reconciliation |
|
|
At or for theThree Months
Ended |
|
|
At or for theYear Ended |
|
ALLOWANCE for CREDIT
LOSSES |
|
December 31,2023 |
|
|
September 30,2023 |
|
|
December 31,2022 |
|
|
December 31,2023 |
|
|
December 31,2022 |
|
|
|
($ in thousands) |
|
Allowance for loan
losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period |
|
$ |
22,705 |
|
|
$ |
22,502 |
|
|
$ |
16,436 |
|
|
$ |
17,099 |
|
|
$ |
11,657 |
|
Adoption of ASU
2016-13 (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,027 |
|
|
|
— |
|
Provision for credit
losses |
|
|
1,131 |
|
|
|
202 |
|
|
|
650 |
|
|
|
1,731 |
|
|
|
5,450 |
|
Charge-offs |
|
|
(1,267 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,303 |
) |
|
|
(21 |
) |
Recoveries |
|
|
— |
|
|
|
1 |
|
|
|
13 |
|
|
|
15 |
|
|
|
13 |
|
Net (charge-offs)
recoveries |
|
|
(1,267 |
) |
|
|
1 |
|
|
|
13 |
|
|
|
(1,288 |
) |
|
|
(8 |
) |
Balance, end of period |
|
$ |
22,569 |
|
|
$ |
22,705 |
|
|
$ |
17,099 |
|
|
$ |
22,569 |
|
|
$ |
17,099 |
|
Reserve for unfunded
loan commitments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of
period |
|
$ |
1,240 |
|
|
$ |
1,538 |
|
|
$ |
1,210 |
|
|
$ |
1,310 |
|
|
$ |
804 |
|
Adoption of ASU
2016-13 (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
439 |
|
|
|
— |
|
(Reversal of) provision for
credit losses |
|
|
(307 |
) |
|
|
(298 |
) |
|
|
100 |
|
|
|
(816 |
) |
|
|
506 |
|
Balance, end of period |
|
|
933 |
|
|
|
1,240 |
|
|
|
1,310 |
|
|
|
933 |
|
|
|
1,310 |
|
Allowance for credit
losses |
|
$ |
23,502 |
|
|
$ |
23,945 |
|
|
$ |
18,409 |
|
|
$ |
23,502 |
|
|
$ |
18,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALL to total loans held for
investment |
|
|
1.15 |
% |
|
|
1.18 |
% |
|
|
0.90 |
% |
|
|
1.15 |
% |
|
|
0.90 |
% |
ACL to total loans held for
investment |
|
|
1.20 |
% |
|
|
1.24 |
% |
|
|
0.97 |
% |
|
|
1.20 |
% |
|
|
0.97 |
% |
(1 |
) |
Represents the impact of adopting ASU 2016-13, Financial
Instruments - Credit Losses on January 1, 2023. As a result of
adopting ASU 2016-13, our methodology to compute our allowance for
credit losses is based on a current expected credit loss
methodology, rather than the previously applied incurred loss
methodology. |
Southern California Bancorp and
SubsidiaryBalance Sheets (Unaudited)
|
|
December 31,2023 |
|
|
September 30,2023 |
|
|
December 31,2022 |
|
ASSETS |
|
|
($ in thousands) |
|
|
Cash and due from banks |
|
$ |
33,008 |
|
|
$ |
33,517 |
|
|
$ |
60,295 |
|
Federal funds sold &
interest-bearing balances |
|
|
53,785 |
|
|
|
61,604 |
|
|
|
26,465 |
|
Total cash and cash equivalents |
|
|
86,793 |
|
|
|
95,121 |
|
|
|
86,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available-for-sale,
at fair value |
|
|
130,035 |
|
|
|
111,840 |
|
|
|
112,580 |
|
Securities held-to-maturity,
at cost (fair value of $50,432 at December 31, 2023; $45,224 at
September 30, 2023; and $47,906 at December 31, 2022) |
|
|
53,616 |
|
|
|
53,699 |
|
|
|
53,946 |
|
Loans held for sale |
|
|
7,349 |
|
|
|
4,813 |
|
|
|
9,027 |
|
Loans held for
investment: |
|
|
|
|
|
|
|
|
|
|
|
|
Construction & land development |
|
|
243,521 |
|
|
|
237,320 |
|
|
|
239,067 |
|
1-4 family residential |
|
|
143,903 |
|
|
|
141,668 |
|
|
|
144,322 |
|
Multifamily |
|
|
221,247 |
|
|
|
218,170 |
|
|
|
218,606 |
|
Other commercial real estate |
|
|
1,024,243 |
|
|
|
1,019,647 |
|
|
|
958,676 |
|
Commercial & industrial |
|
|
320,142 |
|
|
|
310,990 |
|
|
|
331,644 |
|
Other consumer |
|
|
4,386 |
|
|
|
2,756 |
|
|
|
5,458 |
|
Total loans held for investment |
|
|
1,957,442 |
|
|
|
1,930,551 |
|
|
|
1,897,773 |
|
Allowance for credit losses - loans |
|
|
(22,569 |
) |
|
|
(22,705 |
) |
|
|
(17,099 |
) |
Total loans held for investment, net |
|
|
1,934,873 |
|
|
|
1,907,846 |
|
|
|
1,880,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted stock at cost |
|
|
16,055 |
|
|
|
16,027 |
|
|
|
14,543 |
|
Premises and equipment |
|
|
13,270 |
|
|
|
13,565 |
|
|
|
14,334 |
|
Right of use asset |
|
|
9,291 |
|
|
|
10,007 |
|
|
|
8,607 |
|
Goodwill |
|
|
37,803 |
|
|
|
37,803 |
|
|
|
37,803 |
|
Core deposit intangible |
|
|
1,195 |
|
|
|
1,275 |
|
|
|
1,584 |
|
Bank owned life insurance |
|
|
38,918 |
|
|
|
38,665 |
|
|
|
37,972 |
|
Deferred taxes, net |
|
|
11,137 |
|
|
|
12,542 |
|
|
|
10,699 |
|
Accrued interest and other
assets |
|
|
19,917 |
|
|
|
10,446 |
|
|
|
15,398 |
|
Total assets |
|
$ |
2,360,252 |
|
|
$ |
2,313,649 |
|
|
$ |
2,283,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
$ |
675,098 |
|
|
$ |
735,979 |
|
|
$ |
923,899 |
|
Interest-bearing NOW accounts |
|
|
381,943 |
|
|
|
354,489 |
|
|
|
209,625 |
|
Money market and savings accounts |
|
|
636,685 |
|
|
|
699,942 |
|
|
|
668,602 |
|
Time deposits |
|
|
249,830 |
|
|
|
193,447 |
|
|
|
129,779 |
|
Total deposits |
|
|
1,943,556 |
|
|
|
1,983,857 |
|
|
|
1,931,905 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
|
102,865 |
|
|
|
25,842 |
|
|
|
67,770 |
|
Operating lease liability |
|
|
12,117 |
|
|
|
12,657 |
|
|
|
11,055 |
|
Accrued interest and other
liabilities |
|
|
13,562 |
|
|
|
12,743 |
|
|
|
12,842 |
|
Total liabilities |
|
|
2,072,100 |
|
|
|
2,035,099 |
|
|
|
2,023,572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
Common stock - 50,000,000
shares authorized, no par value; issued and outstanding 18,369,115
at December 31, 2023; 18,309,282 at September 30, 2023 and
17,940,283 at December 31, 2022) |
|
|
222,036 |
|
|
|
221,632 |
|
|
|
218,280 |
|
Retained earnings |
|
|
70,575 |
|
|
|
66,163 |
|
|
|
48,516 |
|
Accumulated other
comprehensive loss - net of taxes |
|
|
(4,459 |
) |
|
|
(9,245 |
) |
|
|
(6,441 |
) |
Total shareholders’ equity |
|
|
288,152 |
|
|
|
278,550 |
|
|
|
260,355 |
|
Total liabilities and shareholders’ equity |
|
$ |
2,360,252 |
|
|
$ |
2,313,649 |
|
|
$ |
2,283,927 |
|
Southern California Bancorp and
SubsidiaryIncome Statements - Quarterly and
Year-to-Date (Unaudited)
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31,2023 |
|
|
September 30,2023 |
|
|
December 31,2022 |
|
|
December 31,2023 |
|
|
December 31,2022 |
|
|
|
($ in thousands except share and per share data) |
|
INTEREST AND DIVIDEND
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans |
|
$ |
29,968 |
|
|
$ |
28,977 |
|
|
$ |
25,781 |
|
|
$ |
113,951 |
|
|
$ |
86,366 |
|
Interest on debt
securities |
|
|
991 |
|
|
|
942 |
|
|
|
647 |
|
|
|
3,497 |
|
|
|
2,013 |
|
Interest on tax-exempted debt
securities |
|
|
353 |
|
|
|
359 |
|
|
|
488 |
|
|
|
1,655 |
|
|
|
1,372 |
|
Interest and dividends from
other institutions |
|
|
1,257 |
|
|
|
1,206 |
|
|
|
1,227 |
|
|
|
4,419 |
|
|
|
3,824 |
|
Total interest and dividend income |
|
|
32,569 |
|
|
|
31,484 |
|
|
|
28,143 |
|
|
|
123,522 |
|
|
|
93,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on NOW, savings, and
money market accounts |
|
|
6,606 |
|
|
|
5,922 |
|
|
|
2,096 |
|
|
|
20,161 |
|
|
|
3,793 |
|
Interest on time deposits |
|
|
2,331 |
|
|
|
1,867 |
|
|
|
463 |
|
|
|
6,704 |
|
|
|
797 |
|
Interest on borrowings |
|
|
1,073 |
|
|
|
434 |
|
|
|
315 |
|
|
|
2,519 |
|
|
|
1,199 |
|
Total interest expense |
|
|
10,010 |
|
|
|
8,223 |
|
|
|
2,874 |
|
|
|
29,384 |
|
|
|
5,789 |
|
Net interest income |
|
|
22,559 |
|
|
|
23,261 |
|
|
|
25,269 |
|
|
|
94,138 |
|
|
|
87,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for (reversal of)
credit losses (1) |
|
|
824 |
|
|
|
(96 |
) |
|
|
750 |
|
|
|
915 |
|
|
|
5,956 |
|
Net interest income after provision for credit losses |
|
|
21,735 |
|
|
|
23,357 |
|
|
|
24,519 |
|
|
|
93,223 |
|
|
|
81,830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST (LOSS)
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees on
deposit accounts |
|
|
507 |
|
|
|
470 |
|
|
|
456 |
|
|
|
1,946 |
|
|
|
1,796 |
|
(Loss) gain on sale of
loans |
|
|
— |
|
|
|
(54 |
) |
|
|
293 |
|
|
|
831 |
|
|
|
1,349 |
|
Bank owned life insurance
income |
|
|
253 |
|
|
|
238 |
|
|
|
221 |
|
|
|
946 |
|
|
|
1,490 |
|
Servicing and related income
on loans |
|
|
17 |
|
|
|
61 |
|
|
|
53 |
|
|
|
240 |
|
|
|
192 |
|
Loss on sale of debt
securities |
|
|
(1,008 |
) |
|
|
— |
|
|
|
(994 |
) |
|
|
(974 |
) |
|
|
(994 |
) |
Loss on sale of building and
related fixed assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(768 |
) |
Other charges and fees |
|
|
129 |
|
|
|
100 |
|
|
|
159 |
|
|
|
390 |
|
|
|
610 |
|
Total noninterest (loss) income |
|
|
(102 |
) |
|
|
815 |
|
|
|
188 |
|
|
|
3,379 |
|
|
|
3,675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
|
9,598 |
|
|
|
9,736 |
|
|
|
8,634 |
|
|
|
39,249 |
|
|
|
37,069 |
|
Occupancy and equipment
expenses |
|
|
1,678 |
|
|
|
1,579 |
|
|
|
1,458 |
|
|
|
6,231 |
|
|
|
6,210 |
|
Data processing |
|
|
1,158 |
|
|
|
1,144 |
|
|
|
1,089 |
|
|
|
4,534 |
|
|
|
4,609 |
|
Legal, audit and
professional |
|
|
1,161 |
|
|
|
598 |
|
|
|
487 |
|
|
|
3,211 |
|
|
|
2,597 |
|
Regulatory assessments |
|
|
320 |
|
|
|
369 |
|
|
|
345 |
|
|
|
1,508 |
|
|
|
1,550 |
|
Director and shareholder
expenses |
|
|
207 |
|
|
|
215 |
|
|
|
219 |
|
|
|
849 |
|
|
|
946 |
|
Merger and related (income)
expenses |
|
|
— |
|
|
|
— |
|
|
|
(8 |
) |
|
|
— |
|
|
|
1,177 |
|
Core deposit intangible
amortization |
|
|
80 |
|
|
|
128 |
|
|
|
140 |
|
|
|
389 |
|
|
|
438 |
|
Litigation settlements,
net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,525 |
|
Other expense |
|
|
1,137 |
|
|
|
1,012 |
|
|
|
748 |
|
|
|
3,775 |
|
|
|
3,401 |
|
Total noninterest expense |
|
|
15,339 |
|
|
|
14,781 |
|
|
|
13,112 |
|
|
|
59,746 |
|
|
|
63,522 |
|
Income before income taxes |
|
|
6,294 |
|
|
|
9,391 |
|
|
|
11,595 |
|
|
|
36,856 |
|
|
|
21,983 |
|
Income tax expense |
|
|
1,882 |
|
|
|
2,835 |
|
|
|
3,121 |
|
|
|
10,946 |
|
|
|
5,870 |
|
Net income |
|
$ |
4,412 |
|
|
$ |
6,556 |
|
|
$ |
8,474 |
|
|
$ |
25,910 |
|
|
$ |
16,113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share -
basic |
|
$ |
0.24 |
|
|
$ |
0.36 |
|
|
$ |
0.47 |
|
|
$ |
1.42 |
|
|
$ |
0.90 |
|
Net income per share -
diluted |
|
$ |
0.24 |
|
|
$ |
0.35 |
|
|
$ |
0.46 |
|
|
$ |
1.39 |
|
|
$ |
0.88 |
|
Weighted average common
share-diluted |
|
|
18,727,519 |
|
|
|
18,672,132 |
|
|
|
18,359,781 |
|
|
|
18,656,742 |
|
|
|
18,228,287 |
|
Pre-tax, pre-provision
income (2) |
|
$ |
7,118 |
|
|
$ |
9,295 |
|
|
$ |
12,345 |
|
|
$ |
37,771 |
|
|
$ |
27,939 |
|
(1 |
) |
Included (reversal of) provision for unfunded commitments of $(307)
thousand, $(298) thousand and $100 thousand for the three months
ended December 31, 2023, September 30, 2023 and December 31, 2022,
respectively; and $(816) thousand and $506 thousand for the year
ended December 31, 2023 and December 31, 2022, respectively. |
(2 |
) |
Non-GAAP measure. See – GAAP to
Non-GAAP reconciliation. |
Southern California Bancorp and
SubsidiaryAverage Balance Sheets and Yield
Analysis(Unaudited)
|
|
Three Months Ended |
|
|
|
December 31, 2023 |
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
|
|
Average Balance |
|
|
Income/Expense |
|
|
Yield/Cost |
|
|
Average Balance |
|
|
Income/Expense |
|
|
Yield/Cost |
|
|
Average Balance |
|
|
Income/Expense |
|
|
Yield/Cost |
|
Assets |
|
($ in thousands) |
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
$ |
1,954,396 |
|
|
$ |
29,968 |
|
|
|
6.08 |
% |
|
$ |
1,924,384 |
|
|
$ |
28,977 |
|
|
|
5.97 |
% |
|
$ |
1,870,705 |
|
|
$ |
25,781 |
|
|
|
5.47 |
% |
Taxable debt securities |
|
|
113,375 |
|
|
|
991 |
|
|
|
3.47 |
% |
|
|
111,254 |
|
|
|
942 |
|
|
|
3.36 |
% |
|
|
102,205 |
|
|
|
647 |
|
|
|
2.51 |
% |
Tax-exempt debt
securities (1) |
|
|
58,644 |
|
|
|
353 |
|
|
|
3.02 |
% |
|
|
59,630 |
|
|
|
359 |
|
|
|
3.02 |
% |
|
|
73,166 |
|
|
|
488 |
|
|
|
3.35 |
% |
Deposits in other financial
institutions |
|
|
56,313 |
|
|
|
759 |
|
|
|
5.35 |
% |
|
|
50,367 |
|
|
|
681 |
|
|
|
5.36 |
% |
|
|
40,781 |
|
|
|
347 |
|
|
|
3.38 |
% |
Fed funds sold/resale
agreements |
|
|
9,008 |
|
|
|
125 |
|
|
|
5.51 |
% |
|
|
20,653 |
|
|
|
283 |
|
|
|
5.44 |
% |
|
|
68,437 |
|
|
|
636 |
|
|
|
3.69 |
% |
Restricted stock investments
and other bank stock |
|
|
16,394 |
|
|
|
373 |
|
|
|
9.03 |
% |
|
|
16,365 |
|
|
|
242 |
|
|
|
5.87 |
% |
|
|
14,883 |
|
|
|
244 |
|
|
|
6.50 |
% |
Total interest-earning assets |
|
|
2,208,130 |
|
|
|
32,569 |
|
|
|
5.85 |
% |
|
|
2,182,653 |
|
|
|
31,484 |
|
|
|
5.72 |
% |
|
|
2,170,177 |
|
|
|
28,143 |
|
|
|
5.14 |
% |
Total noninterest-earning
assets |
|
|
137,193 |
|
|
|
|
|
|
|
|
|
|
|
131,288 |
|
|
|
|
|
|
|
|
|
|
|
139,205 |
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
2,345,323 |
|
|
|
|
|
|
|
|
|
|
$ |
2,313,941 |
|
|
|
|
|
|
|
|
|
|
$ |
2,309,382 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing NOW
accounts |
|
$ |
362,579 |
|
|
$ |
1,860 |
|
|
|
2.04 |
% |
|
$ |
353,714 |
|
|
$ |
1,706 |
|
|
|
1.91 |
% |
|
$ |
215,272 |
|
|
$ |
121 |
|
|
|
0.22 |
% |
Money market and savings
accounts |
|
|
669,391 |
|
|
|
4,746 |
|
|
|
2.81 |
% |
|
|
675,609 |
|
|
|
4,216 |
|
|
|
2.48 |
% |
|
|
700,544 |
|
|
|
1,975 |
|
|
|
1.12 |
% |
Time deposits |
|
|
208,700 |
|
|
|
2,331 |
|
|
|
4.43 |
% |
|
|
183,745 |
|
|
|
1,867 |
|
|
|
4.03 |
% |
|
|
123,524 |
|
|
|
463 |
|
|
|
1.49 |
% |
Total interest-bearing deposits |
|
|
1,240,670 |
|
|
|
8,937 |
|
|
|
2.86 |
% |
|
|
1,213,068 |
|
|
|
7,789 |
|
|
|
2.55 |
% |
|
|
1,039,340 |
|
|
|
2,559 |
|
|
|
0.98 |
% |
Borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLB advances |
|
|
56,380 |
|
|
|
802 |
|
|
|
5.64 |
% |
|
|
11,731 |
|
|
|
163 |
|
|
|
5.51 |
% |
|
|
3,696 |
|
|
|
44 |
|
|
|
4.72 |
% |
Subordinated debt |
|
|
17,854 |
|
|
|
271 |
|
|
|
6.02 |
% |
|
|
17,830 |
|
|
|
271 |
|
|
|
6.03 |
% |
|
|
17,759 |
|
|
|
271 |
|
|
|
6.05 |
% |
Total borrowings |
|
|
74,234 |
|
|
|
1,073 |
|
|
|
5.73 |
% |
|
|
29,561 |
|
|
|
434 |
|
|
|
5.82 |
% |
|
|
21,455 |
|
|
|
315 |
|
|
|
5.82 |
% |
Total interest-bearing
liabilities |
|
|
1,314,904 |
|
|
|
10,010 |
|
|
|
3.02 |
% |
|
|
1,242,629 |
|
|
|
8,223 |
|
|
|
2.63 |
% |
|
|
1,060,795 |
|
|
|
2,874 |
|
|
|
1.07 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits (2) |
|
|
721,169 |
|
|
|
|
|
|
|
|
|
|
|
768,148 |
|
|
|
|
|
|
|
|
|
|
|
970,908 |
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
27,178 |
|
|
|
|
|
|
|
|
|
|
|
25,722 |
|
|
|
|
|
|
|
|
|
|
|
23,199 |
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
282,072 |
|
|
|
|
|
|
|
|
|
|
|
277,442 |
|
|
|
|
|
|
|
|
|
|
|
254,480 |
|
|
|
|
|
|
|
|
|
Total Liabilities and
Shareholders’ Equity |
|
$ |
2,345,323 |
|
|
|
|
|
|
|
|
|
|
$ |
2,313,941 |
|
|
|
|
|
|
|
|
|
|
$ |
2,309,382 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
|
|
|
2.83 |
% |
|
|
|
|
|
|
|
|
|
|
3.09 |
% |
|
|
|
|
|
|
|
|
|
|
4.07 |
% |
Net interest income
and margin |
|
|
|
|
|
$ |
22,559 |
|
|
|
4.05 |
% |
|
|
|
|
|
$ |
23,261 |
|
|
|
4.23 |
% |
|
|
|
|
|
$ |
25,269 |
|
|
|
4.62 |
% |
Cost of deposits |
|
|
|
|
|
|
|
|
|
|
1.81 |
% |
|
|
|
|
|
|
|
|
|
|
1.56 |
% |
|
|
|
|
|
|
|
|
|
|
0.51 |
% |
Cost of funds |
|
|
|
|
|
|
|
|
|
|
1.95 |
% |
|
|
|
|
|
|
|
|
|
|
1.62 |
% |
|
|
|
|
|
|
|
|
|
|
0.56 |
% |
(1 |
) |
Tax-exempt debt securities yields
are presented on a tax equivalent basis using a 21% tax rate. |
(2 |
) |
Average noninterest-bearing deposits represent 36.76%, 38.77% and
48.30% of average total deposits for the three months ended
December 31, 2023, September 30, 2023 and December 31, 2022,
respectively. |
Southern California Bancorp and
SubsidiaryAverage Balance Sheets and Yield
Analysis(Unaudited)
|
|
Year Ended |
|
|
|
December 31, 2023 |
|
|
December 31, 2022 |
|
|
|
Average Balance |
|
|
Income/Expense |
|
|
Yield/Cost |
|
|
Average Balance |
|
|
Income/Expense |
|
|
Yield/Cost |
|
Assets |
|
($ in thousands) |
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
$ |
1,918,443 |
|
|
$ |
113,951 |
|
|
|
5.94 |
% |
|
$ |
1,720,560 |
|
|
$ |
86,366 |
|
|
|
5.02 |
% |
Taxable debt securities |
|
|
107,021 |
|
|
|
3,497 |
|
|
|
3.27 |
% |
|
|
96,357 |
|
|
|
2,013 |
|
|
|
2.09 |
% |
Tax-exempt debt
securities (1) |
|
|
65,674 |
|
|
|
1,655 |
|
|
|
3.19 |
% |
|
|
54,744 |
|
|
|
1,372 |
|
|
|
3.17 |
% |
Deposits in other financial
institutions |
|
|
46,826 |
|
|
|
2,434 |
|
|
|
5.20 |
% |
|
|
210,467 |
|
|
|
1,508 |
|
|
|
0.72 |
% |
Fed funds sold/resale
agreements |
|
|
18,114 |
|
|
|
923 |
|
|
|
5.10 |
% |
|
|
65,172 |
|
|
|
1,388 |
|
|
|
2.13 |
% |
Restricted stock investments
and other bank stock |
|
|
15,930 |
|
|
|
1,062 |
|
|
|
6.67 |
% |
|
|
14,668 |
|
|
|
928 |
|
|
|
6.33 |
% |
Total interest-earning assets |
|
|
2,172,008 |
|
|
|
123,522 |
|
|
|
5.69 |
% |
|
|
2,161,968 |
|
|
|
93,575 |
|
|
|
4.33 |
% |
Total noninterest-earning
assets |
|
|
134,225 |
|
|
|
|
|
|
|
|
|
|
|
139,450 |
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
2,306,233 |
|
|
|
|
|
|
|
|
|
|
$ |
2,301,418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing NOW
accounts |
|
$ |
308,537 |
|
|
$ |
5,161 |
|
|
|
1.67 |
% |
|
$ |
211,075 |
|
|
$ |
312 |
|
|
|
0.15 |
% |
Money market and savings
accounts |
|
|
673,176 |
|
|
|
15,000 |
|
|
|
2.23 |
% |
|
|
690,830 |
|
|
|
3,481 |
|
|
|
0.50 |
% |
Time deposits |
|
|
180,219 |
|
|
|
6,704 |
|
|
|
3.72 |
% |
|
|
100,746 |
|
|
|
797 |
|
|
|
0.79 |
% |
Total interest-bearing deposits |
|
|
1,161,932 |
|
|
|
26,865 |
|
|
|
2.31 |
% |
|
|
1,002,651 |
|
|
|
4,590 |
|
|
|
0.46 |
% |
Borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLB advances |
|
|
26,390 |
|
|
|
1,434 |
|
|
|
5.43 |
% |
|
|
932 |
|
|
|
43 |
|
|
|
4.61 |
% |
Subordinated debt |
|
|
17,818 |
|
|
|
1,085 |
|
|
|
6.09 |
% |
|
|
17,723 |
|
|
|
1,086 |
|
|
|
6.13 |
% |
TruPS |
|
|
— |
|
|
|
— |
|
|
|
— |
% |
|
|
1,239 |
|
|
|
70 |
|
|
|
5.65 |
% |
Total borrowings |
|
|
44,208 |
|
|
|
2,519 |
|
|
|
5.70 |
% |
|
|
19,894 |
|
|
|
1,199 |
|
|
|
6.03 |
% |
Total interest-bearing
liabilities |
|
|
1,206,140 |
|
|
|
29,384 |
|
|
|
2.44 |
% |
|
|
1,022,545 |
|
|
|
5,789 |
|
|
|
0.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits (2) |
|
|
801,882 |
|
|
|
|
|
|
|
|
|
|
|
1,006,795 |
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
24,865 |
|
|
|
|
|
|
|
|
|
|
|
22,024 |
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
273,346 |
|
|
|
|
|
|
|
|
|
|
|
250,054 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Shareholders’ Equity |
|
$ |
2,306,233 |
|
|
|
|
|
|
|
|
|
|
$ |
2,301,418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
|
|
|
3.25 |
% |
|
|
|
|
|
|
|
|
|
|
3.76 |
% |
Net interest income
and margin |
|
|
|
|
|
$ |
94,138 |
|
|
|
4.33 |
% |
|
|
|
|
|
$ |
87,786 |
|
|
|
4.06 |
% |
Cost of deposits |
|
|
|
|
|
|
|
|
|
|
1.37 |
% |
|
|
|
|
|
|
|
|
|
|
0.23 |
% |
Cost of funds |
|
|
|
|
|
|
|
|
|
|
1.46 |
% |
|
|
|
|
|
|
|
|
|
|
0.29 |
% |
(1 |
) |
Tax-exempt debt securities yields
are presented on a tax equivalent basis using a 21% tax rate. |
(2 |
) |
Average noninterest-bearing deposits represent 40.83%, and 50.10%
of average total deposits for the year ended December 31, 2023 and
December 31, 2022, respectively. |
Southern California Bancorp and SubsidiaryGAAP
to Non-GAAP Reconciliation(Unaudited)
The following tables present a reconciliation of
non-GAAP financial measures to GAAP measures for: (1) adjusted net
income, (2) efficiency ratio, (3) adjusted efficiency ratio, (4)
pre-tax pre-provision income, (5) adjusted pre-tax pre-provision
income, (6) average tangible common equity, (7) adjusted return on
average assets, (8) adjusted return on average equity, (9) return
on average tangible common equity, (10) adjusted return on average
tangible common equity, (11) tangible common equity, (12) tangible
assets, (13) tangible common equity to tangible asset ratio, and
(14) tangible book value per share. We believe the presentation of
certain non-GAAP financial measures provides useful information to
assess our consolidated financial condition and consolidated
results of operations and to assist investors in evaluating our
financial results relative to our peers. These non-GAAP financial
measures complement our GAAP reporting and are presented below to
provide investors and others with information that we use to manage
the business each period. Because not all companies use identical
calculations, the presentation of these non-GAAP financial measures
may not be comparable to other similarly titled measures used by
other companies. These non-GAAP measures should be taken together
with the corresponding GAAP measures and should not be considered a
substitute of the GAAP measures.
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31,2023 |
|
|
September 30,2023 |
|
|
December 31,2022 |
|
|
December 31,2023 |
|
|
December 31,2022 |
|
|
|
($ in thousands) |
|
Adjusted net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
4,412 |
|
|
$ |
6,556 |
|
|
$ |
8,474 |
|
|
$ |
25,910 |
|
|
$ |
16,113 |
|
(Deduct) add: After-tax merger
and related (income) expenses (1) |
|
|
— |
|
|
|
— |
|
|
|
(6 |
) |
|
|
— |
|
|
|
846 |
|
Add: After-tax litigation
settlements, net (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,734 |
|
Adjusted net income
(non-GAAP) |
|
$ |
4,412 |
|
|
$ |
6,556 |
|
|
$ |
8,468 |
|
|
$ |
25,910 |
|
|
$ |
20,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense |
|
$ |
15,339 |
|
|
$ |
14,781 |
|
|
$ |
13,112 |
|
|
$ |
59,746 |
|
|
$ |
63,522 |
|
(Add) deduct: Merger and
related (income) expenses |
|
|
— |
|
|
|
— |
|
|
|
(8 |
) |
|
|
— |
|
|
|
1,177 |
|
Deduct: Litigation
settlements, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,300 |
|
Adjusted noninterest
expense |
|
|
15,339 |
|
|
|
14,781 |
|
|
|
13,120 |
|
|
|
59,746 |
|
|
|
57,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
22,559 |
|
|
|
23,261 |
|
|
|
25,269 |
|
|
|
94,138 |
|
|
|
87,786 |
|
Noninterest (loss) income |
|
|
(102 |
) |
|
|
815 |
|
|
|
188 |
|
|
|
3,379 |
|
|
|
3,675 |
|
Total net interest income and
noninterest (loss) income |
|
$ |
22,457 |
|
|
$ |
24,076 |
|
|
$ |
25,457 |
|
|
$ |
97,517 |
|
|
$ |
91,461 |
|
Efficiency ratio
(non-GAAP) |
|
|
68.3 |
% |
|
|
61.4 |
% |
|
|
51.5 |
% |
|
|
61.3 |
% |
|
|
69.5 |
% |
Adjusted efficiency ratio
(non-GAAP) |
|
|
68.3 |
% |
|
|
61.4 |
% |
|
|
51.5 |
% |
|
|
61.3 |
% |
|
|
62.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax pre-provision income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
22,559 |
|
|
$ |
23,261 |
|
|
$ |
25,269 |
|
|
$ |
94,138 |
|
|
$ |
87,786 |
|
Noninterest (loss) income |
|
|
(102 |
) |
|
|
815 |
|
|
|
188 |
|
|
|
3,379 |
|
|
|
3,675 |
|
Total net interest income and
noninterest (loss) income |
|
|
22,457 |
|
|
|
24,076 |
|
|
|
25,457 |
|
|
|
97,517 |
|
|
|
91,461 |
|
Less: Noninterest expense |
|
|
15,339 |
|
|
|
14,781 |
|
|
|
13,112 |
|
|
|
59,746 |
|
|
|
63,522 |
|
Pre-tax pre-provision income
(non-GAAP) |
|
|
7,118 |
|
|
|
9,295 |
|
|
|
12,345 |
|
|
|
37,771 |
|
|
|
27,939 |
|
(Deduct) add: Merger and
related (income) expenses |
|
|
— |
|
|
|
— |
|
|
|
(8 |
) |
|
|
— |
|
|
|
1,177 |
|
Add: Litigation settlements,
net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,300 |
|
Adjusted pre-tax pre-provision
income (non-GAAP) |
|
$ |
7,118 |
|
|
$ |
9,295 |
|
|
$ |
12,337 |
|
|
$ |
37,771 |
|
|
$ |
34,416 |
|
(1 |
) |
After-tax merger and related
expenses and litigation settlements, net are presented using a
29.56% tax rate. |
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31,2023 |
|
|
September 30,2023 |
|
|
December 31,2022 |
|
|
December 31,2023 |
|
|
December 31,2022 |
|
Return on Average Assets, Equity, and Tangible
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
4,412 |
|
|
$ |
6,556 |
|
|
$ |
8,474 |
|
|
$ |
25,910 |
|
|
$ |
16,113 |
|
Adjusted net income
(non-GAAP) |
|
$ |
4,412 |
|
|
$ |
6,556 |
|
|
$ |
8,468 |
|
|
$ |
25,910 |
|
|
$ |
20,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
|
$ |
2,345,323 |
|
|
$ |
2,313,941 |
|
|
$ |
2,309,382 |
|
|
$ |
2,306,233 |
|
|
$ |
2,301,418 |
|
Average shareholders’
equity |
|
|
282,072 |
|
|
|
277,442 |
|
|
|
254,480 |
|
|
|
273,346 |
|
|
|
250,054 |
|
Less: Average intangible
assets |
|
|
39,035 |
|
|
|
39,158 |
|
|
|
39,475 |
|
|
|
39,195 |
|
|
|
38,960 |
|
Average tangible common equity
(non-GAAP) |
|
$ |
243,037 |
|
|
$ |
238,284 |
|
|
$ |
215,005 |
|
|
$ |
234,151 |
|
|
$ |
211,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.75 |
% |
|
|
1.12 |
% |
|
|
1.46 |
% |
|
|
1.12 |
% |
|
|
0.70 |
% |
Adjusted return on average
assets (non-GAAP) |
|
|
0.75 |
% |
|
|
1.12 |
% |
|
|
1.45 |
% |
|
|
1.12 |
% |
|
|
0.90 |
% |
Return on average equity |
|
|
6.21 |
% |
|
|
9.38 |
% |
|
|
13.21 |
% |
|
|
9.48 |
% |
|
|
6.44 |
% |
Adjusted return on average
equity (non-GAAP) |
|
|
6.21 |
% |
|
|
9.38 |
% |
|
|
13.20 |
% |
|
|
9.48 |
% |
|
|
8.28 |
% |
Return on average tangible
common equity (non-GAAP) |
|
|
7.20 |
% |
|
|
10.92 |
% |
|
|
15.64 |
% |
|
|
11.07 |
% |
|
|
7.63 |
% |
Adjusted return on average
tangible common equity (non-GAAP) |
|
|
7.20 |
% |
|
|
10.92 |
% |
|
|
15.63 |
% |
|
|
11.07 |
% |
|
|
9.80 |
% |
|
|
December 31,2023 |
|
|
September 30,2023 |
|
|
December 31,2022 |
|
|
|
($ in thousands except share and per share data) |
|
Tangible Common Equity
Ratio/Tangible Book Value Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
$ |
288,152 |
|
|
$ |
278,550 |
|
|
$ |
260,355 |
|
Less: Intangible assets |
|
|
38,998 |
|
|
|
39,078 |
|
|
|
39,387 |
|
Tangible common equity
(non-GAAP) |
|
$ |
249,154 |
|
|
$ |
239,472 |
|
|
$ |
220,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,360,252 |
|
|
$ |
2,313,649 |
|
|
$ |
2,283,927 |
|
Less: Intangible assets |
|
|
38,998 |
|
|
|
39,078 |
|
|
|
39,387 |
|
Tangible assets
(non-GAAP) |
|
$ |
2,321,254 |
|
|
$ |
2,274,571 |
|
|
$ |
2,244,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to asset ratio |
|
|
12.21 |
% |
|
|
12.04 |
% |
|
|
11.40 |
% |
Tangible common equity to
tangible asset ratio (non-GAAP) |
|
|
10.73 |
% |
|
|
10.53 |
% |
|
|
9.84 |
% |
Book value per share |
|
$ |
15.69 |
|
|
$ |
15.21 |
|
|
$ |
14.51 |
|
Tangible book value per share
(non-GAAP) |
|
$ |
13.56 |
|
|
$ |
13.08 |
|
|
$ |
12.32 |
|
Shares outstanding |
|
|
18,369,115 |
|
|
|
18,309,282 |
|
|
|
17,940,283 |
|
INVESTOR RELATIONS CONTACTKevin Mc CabeBank of
Southern Californiakmccabe@banksocal.com818.637.7065
Southern California Banc... (NASDAQ:BCAL)
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Southern California Banc... (NASDAQ:BCAL)
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