OAKLAND, Calif., Oct. 27, 2022 (GLOBE NEWSWIRE) — California BanCorp (NASDAQ: CALB), whose subsidiary is California Bank of Commerce, announced today its financial results for the third quarter and nine months ended September 30, 2022.
The Company reported net income of $5.5 million for the third quarter of 2022, representing an increase of $1.3 million, or 30%, compared to $4.2 million for the second quarter of 2022 and an increase of $2.3 million, or 72%, compared to $3.2 million in the third quarter of 2021. For the nine months ended September 30, 2022, net income was $13.4 million, representing an increase of $3.2 million, or 32%, compared to $10.2 million for the same period in 2021.
Diluted earnings per share of $0.66 for the third quarter of 2022 compared to $0.51 for the second quarter of 2022 and $0.39 for the third quarter of 2021. For the nine months ended September 30, 2022, diluted earnings per share of $1.60 compared to $1.23 for the same period in 2021.
“The consistent progress we have made on executing our strategic plan to generate profitable growth resulted in further improvement in our level of profitability and enabled the Company to reach a significant milestone with our return on average assets exceeding 1.00% in the third quarter,” said Steven Shelton, Chief Executive Officer of California BanCorp. “We continue to add new clients each quarter and generate strong, quality balance sheet growth including a further increase in our noninterest-bearing deposits and 23% annualized growth in total loans, which is driving a significant increase in revenue that enabled us to realize more operating leverage and a higher level of efficiencies. With the diverse lending platform we have built, we are seeing well balanced loan production, which combined with an increase in line utilization, resulted in growth in both our commercial and commercial real estate portfolios during the third quarter. Our high level of asset sensitivity and effective management of our deposit costs resulted in our net interest margin expanding by 29 basis points in the third quarter, which was another contributor to our increased profitability. While we continue to see healthy economic conditions in our markets, given the potential for a material slowdown and our conservative approach to risk management, we are becoming more selective in our new loan production. It is likely that this will result in a moderation in our level of loan growth and margin expansion in the near-term, although we believe we are well positioned to continue generating strong financial results for our shareholders while effectively managing through a more challenging operating environment.”
“Our strong financial performance and effective balance sheet management resulted in further growth in tangible book value per share, which increased 3.4% during the third quarter,” said Thomas A. Sa, President, Chief Financial Officer and Chief Operating Officer of California BanCorp. “Over the past few years, we have maintained conservative underwriting criteria as we have grown our loan portfolio and generated the higher level of revenue that has led to our increasing profitability. As a result, we continue to see very low levels of problem loans and expect to maintain strong asset quality even if we see a deterioration in economic conditions.”
Financial Highlights:
Profitability – three months ended September 30, 2022 compared to June 30, 2022
- Net income of $5.5 million and $0.66 per diluted share, compared to $4.2 million and $0.51 per share, respectively.
- Revenue of $19.8 million increased $2.2 million, or 13%, compared to $17.6 million for the second quarter of 2022.
- Net fees from Paycheck Protection Program (“PPP”) loans contributed $278,000 to net interest income, compared to $667,000 for the second quarter of 2022.
- Provision for loan losses of $800,000 decreased $125,000, or 14%, primarily as a result of continued adjustments in the qualitative reserve assessment in response to general macroeconomic changes, partially offset by growth in the commercial and real estate other loan portfolios.
- Non-interest income of $1.5 million increased $90,000, or 6%, primarily due to service charges and other fees related to loan and deposit growth.
- Non-interest expense, excluding capitalized loan origination costs, of $12.3 million increased $427,000, or 4%, compared to $11.9 million for the second quarter of 2022, primarily as a result of increased salary and benefit expense related to the continued growth of the Company.
Profitability – nine months ended September 30, 2022 compared to September 30, 2021
- Net income of $13.4 million and $1.60 per diluted share, compared to $10.2 million and $1.23 per diluted share, respectively.
- Revenue of $54.5 million increased $10.6 million, or 24%, compared to $43.9 million in the prior year.
- Net fees from PPP loans contributed $1.7 million to net interest income, compared to $4.8 million in the prior year.
- Provision for loan losses increased $3.2 million primarily due to growth in the loan portfolio combined with a release of reserves in 2021 as a result of the continued assessment of qualitative reserves regarding the general macroeconomic changes related to COVID-19 as it pertained to our overall loan portfolio.
- Non-interest income of $5.4 million increased $2.2 million, or 70%, primarily due to a gain recognized on the sale of a portion of our solar loan portfolio during the first quarter of 2022 combined with an increase in service charges and other fees resulting from growth in the Company’s client base.
- Non-interest expense, excluding capitalized loan origination costs, of $36.1 million compared to $34.4 million for the same period in the prior year, reflecting the Company’s investment in infrastructure to support the continued growth of the Company.
Financial Position – September 30, 2022 compared to June 30, 2022
- Total assets increased by $163.1 million, or 9%, to $2.05 billion.
- Total gross loans increased by $87.5 million, or 6%, to $1.59 billion.
- Total deposits increased by $156.9 million, or 10%, to $1.71 billion.
- Total borrowings at September 30, 2022 remained unchanged from June 30, 2022.
- Tangible book value per share of $18.80 increased by $0.62, or 3%.
Net Interest Income and Margin:
Net interest income for the quarter ended September 30, 2022 was $18.3 million, an increase of $2.1 million, or 13%, from $16.2 million for the three months ended June 30, 2022, and an increase of $4.5 million, or 33%, from $13.8 million for the quarter ended September 30, 2021. The increase in net interest income compared to the second quarter of 2022 was primarily attributable to growth of the loan portfolio and an increase in net interest margin related to the rising interest rate environment. Compared to the third quarter of 2021, the increase in net interest income resulted from a more favorable mix of earning assets, partially offset by a reduction in the amortization of net fees received on PPP loans.
Net interest income for the nine months ended September 30, 2022 was $49.1 million, an increase of $8.3 million, or 20%, over $40.8 million for the nine months ended September 30, 2021. The increase in net interest income was primarily attributable to an increase in interest income as the result of a more favorable mix of earning assets combined with higher yields on those assets.
The Company’s net interest margin for the third quarter of 2022 was 3.94%, compared to 3.65% for the second quarter of 2022 and 2.87% for the same period in 2021. The increase in margin compared to the prior quarter and the third quarter of 2021 was primarily due to growth in the loan portfolio and increased yields on earning assets, partially offset by an increase in the cost of deposits and other borrowings combined with a reduction of net fees recognized on PPP loans.
The Company’s net interest margin for the nine months ended September 30, 2022 was 3.60%, compared to 2.92% for the same period in 2021. The increase in margin compared to prior year was primarily due to a more favorable mix of higher yielding earning assets, partially offset by higher borrowing costs.
Non-Interest Income:
The Company’s non-interest income for the quarters ended September 30, 2022, June 30, 2022, and September 30, 2021 was $1.5 million, $1.4, million and $1.3 million, respectively. The increase in non-interest income from the prior periods was primarily due to an increase in service charges and other fee income related to loan and deposit growth.
For the nine months ended September 30, 2022, non-interest income of $5.4 million compared to $3.2 million for the same period of 2021. The increase in non-interest income from prior year was the result of an increase in service charges and loan related fees and a gain recognized on the sale of a portion of our solar loan portfolio.
Net interest income and non-interest income comprised total revenue of $19.8 million, $17.6 million, and $15.1 million for the quarters ended September 30, 2022, June 30, 2022, and September 30, 2021, respectively. Total revenue for the nine months ended September 30, 2022 and 2021 was $54.5 million and $43.9 million, respectively.
Non-Interest Expense:
The Company’s non-interest expense for the quarters ended September 30, 2022, June 30, 2022, and September 30, 2021 was $11.2 million, $10.8 million, and $10.5 million, respectively. The increase in non-interest expense from the prior periods was primarily due to an increase in salaries and benefits related to investments to support the continued growth of the business. Excluding capitalized loan origination costs, non-interest expense for the third quarter of 2022, the second quarter of 2022 and the third quarter of 2021 was $12.3 million, $11.9 million, and $11.7 million, respectively.
Non-interest expense of $33.0 million for the nine months ended September 30, 2022 compared to $30.4 million for the same period of 2021. Excluding capitalized loan origination costs, non-interest expense was $36.1 million for the nine months ended September 30, 2022 and $34.4 million for the same period in 2021 which reflects the Company’s investment in infrastructure to support the continued growth of the Company.
The Company’s efficiency ratio, the ratio of non-interest expense to revenues, was 56.52%, 61.41%, and 69.42% for the quarters ended September 30, 2022, June 30, 2022, and September 30, 2021, respectively. For the nine months ended September 30, 2022 and 2021, the Company’s efficiency ratio was 60.44% and 69.25%, respectively.
Balance Sheet:
Total assets of $2.05 billion as of September 30, 2022, represented an increase of $163.1 million, or 9%, compared to $1.89 billion at June 30, 2022 and remained consistent with total assets of $2.05 million at September 30, 2021. The increase in total assets from the prior quarter was primarily due to continued loan growth, combined with increased liquidity related to brokered deposits. Compared to the same period in the prior year, the Company had strong loan growth in the commercial and real estate other portfolios, which was offset by decreased liquidity resulting from the outflow of deposits related to forgiveness of PPP loans.
Total gross loans increased by $87.5 million, or 6%, to $1.59 billion at September 30, 2022, from $1.50 billion at June 30, 2022 and increased by $285.9 million, or 22%, compared to $1.30 billion at September 30, 2021.
During the third quarter of 2022, commercial and real estate other loans increased by $53.6 million and $30.4 million, respectively, due to organic growth. Year-over-year, commercial and real estate other loans increased by $215.0 million and $160.7 million, respectively, also due to organic growth. These increases were partially offset by a decrease in SBA loans of $98.5 million primarily due to PPP loan forgiveness.
As a result of the CARES Act PPP, which was launched in April 2020 and re-launched in January 2021, the Company funded approximately $491.3 million in loans. Approximately $487.5 million of those balances have been granted forgiveness by the SBA as of September 30, 2022.
Total deposits increased by $156.9 million, or 10%, to $1.71 billion at September 30, 2022 from $1.55 billion at June 30, 2022, and decreased by $33.0 million, or 2%, from $1.74 billion at September 30, 2021. The increase in total deposits from the end of the second quarter of 2022 was primarily due to an increase in non-interest bearing demand deposits of $43.3 million and time deposits of $152.9 million, partially offset by a decrease in interest-bearing demand deposits of $10.3 million and money market and savings deposits of $28.9 million.
Compared to the same period last year, the decrease in total deposits was primarily concentrated in non-interest bearing demand deposits and money market and savings deposits as a result of outflows related to forgiveness of PPP loans, offset by an increase in time deposits. Non-interest bearing deposits, primarily commercial business operating accounts, represented 44.4% of total deposits at September 30, 2022, compared to 46.1% at June 30, 2022 and 46.7% at September 30, 2021.
As of September 30, 2022, the Company had outstanding borrowings, excluding junior subordinated debt securities, of $100.0 million, and remained unchanged from the outstanding borrowings as of June 30, 2022. The Company had outstanding borrowings of $79.5 million at September 30, 2021.
Asset Quality:
The provision for credit losses decreased to $800,000 for the third quarter of 2022 compared to $925,000 for the second quarter of 2022, and increased from $300,000 for the third quarter of 2021. The Company had a loan charge-off of $202,000, or 0.01% of gross loans, and no loan recoveries during the third quarter of 2022. The Company did not have any loan charge-offs or recoveries during the second quarter of 2022 and had a loan recovery of $31,000 during the third quarter of 2021.
Non-performing assets (“NPAs”) to total assets were 0.01% at September 30, 2022, compared to 0.03% at June 30, 2022 and 0.06% at September 30, 2021, with non-performing loans of $182,000, $549,000 and $1.2 million, respectively, on those dates.
The allowance for loan losses was $16.6 million, or 1.04% of total loans, at September 30, 2022, compared to $16.0 million, or 1.06% of total loans, at June 30, 2022 and $13.6 million, or 1.04% of total loans at September 30, 2021.
Capital Adequacy:
At September 30, 2022, shareholders’ equity totaled $164.1 million compared to $158.7 million at June 30, 2022 and $147.2 million one year ago. Additionally, at September 30, 2022, the Company’s total risk-based capital ratio and its leverage ratio were 11.57% and 8.21%, respectively; both of which were above the regulatory standards of 10.00% and 5.00%, respectively, for “well-capitalized” institutions.
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) 457-3751, or visit us at www.californiabankofcommerce.com.
Contacts:
Steven E. Shelton, (510) 457-3751
Chief Executive Officer
seshelton@bankcbc.com
Thomas A. Sa, (510) 457-3775
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; uncertainties related to the coronavirus pandemic; the impact of higher inflation rates; 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, loan demand, 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, 2021 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 September 30, 2022, which we expect to file with the SEC during the fourth quarter of 2022, and readers of this release are urged to review the additional information that will be contained in that report.
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 law.
FINANCIAL TABLES FOLLOW
| CALIFORNIA BANCORP AND SUBSIDIARY | ||||||||||||||||||||||||||
| SELECTED FINANCIAL INFORMATION (UNAUDITED) – PROFITABILITY | ||||||||||||||||||||||||||
| (Dollars in Thousands, Except Per Share Data) | ||||||||||||||||||||||||||
| Change | Change | |||||||||||||||||||||||||
| QUARTERLY HIGHLIGHTS: | Q3 2022 | Q2 2022 | $ | % | Q3 2021 | $ | % | |||||||||||||||||||
| Interest income | $ | 21,168 | $ | 17,706 | $ | 3,462 | 20 | % | $ | 15,539 | $ | 5,629 | 36 | % | ||||||||||||
| Interest expense | 2,805 | 1,483 | 1,322 | 89 | % | 1,698 | 1,107 | 65 | % | |||||||||||||||||
| Net interest income | 18,363 | 16,223 | 2,140 | 13 | % | 13,841 | 4,522 | 33 | % | |||||||||||||||||
| Provision for loan losses | 800 | 925 | (125 | ) | -14 | % | 300 | 500 | 167 | % | ||||||||||||||||
| Net interest income after | ||||||||||||||||||||||||||
| provision for loan losses | 17,563 | 15,298 | 2,265 | 15 | % | 13,541 | 4,022 | 30 | % | |||||||||||||||||
| Non-interest income | 1,484 | 1,394 | 90 | 6 | % | 1,302 | 182 | 14 | % | |||||||||||||||||
| Non-interest expense | 11,217 | 10,819 | 398 | 4 | % | 10,513 | 704 | 7 | % | |||||||||||||||||
| Income before income taxes | 7,830 | 5,873 | 1,957 | 33 | % | 4,330 | 3,500 | 81 | % | |||||||||||||||||
| Income tax expense | 2,308 | 1,629 | 679 | 42 | % | 1,114 | 1,194 | 107 | % | |||||||||||||||||
| Net income | $ | 5,522 | $ | 4,244 | $ | 1,278 | 30 | % | $ | 3,216 | $ | 2,306 | 72 | % | ||||||||||||
| Diluted earnings per share | $ | 0.66 | $ | 0.51 | $ | 0.15 | 29 | % | $ | 0.39 | $ | 0.27 | 69 | % | ||||||||||||
| Net interest margin | 3.94 | % | 3.65 | % | +29 Basis Points | 2.87 | % | +107 Basis Points | ||||||||||||||||||
| Efficiency ratio | 56.52 | % | 61.41 | % | -489 Basis Points | 69.42 | % | -1290 Basis Points | ||||||||||||||||||
| Change | ||||||||||||||||||||||||||
| YEAR-TO-DATE HIGHLIGHTS: | Q3 2022 | Q3 2021 | $ | % | ||||||||||||||||||||||
| Interest income | $ | 54,798 | $ | 45,750 | $ | 9,048 | 20 | % | ||||||||||||||||||
| Interest expense | 5,686 | 4,987 | 699 | 14 | % | |||||||||||||||||||||
| Net interest income | 49,112 | 40,763 | 8,349 | 20 | % | |||||||||||||||||||||
| Provision for loan losses | 2,675 | (500 | ) | 3,175 | 635 | % | ||||||||||||||||||||
| Net interest income after | ||||||||||||||||||||||||||
| provision for loan losses | 46,437 | 41,263 | 5,174 | 13 | % | |||||||||||||||||||||
| Non-interest income | 5,412 | 3,179 | 2,233 | 70 | % | |||||||||||||||||||||
| Non-interest expense | 32,952 | 30,428 | 2,524 | 8 | % | |||||||||||||||||||||
| Income before income taxes | 18,897 | 14,014 | 4,883 | 35 | % | |||||||||||||||||||||
| Income tax expense | 5,458 | 3,827 | 1,631 | 43 | % | |||||||||||||||||||||
| Net income | $ | 13,439 | $ | 10,187 | $ | 3,252 | 32 | % | ||||||||||||||||||
| Diluted earnings per share | $ | 1.60 | $ | 1.23 | $ | 0.37 | 30 | % | ||||||||||||||||||
| Net interest margin | 3.60 | % | 2.92 | % | +68 Basis Points | |||||||||||||||||||||
| Efficiency ratio | 60.44 | % | 69.25 | % | -881 Basis Points | |||||||||||||||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | |||||||||||||||||||||||||||
| SELECTED FINANCIAL INFORMATION (UNAUDITED) – FINANCIAL POSITION | |||||||||||||||||||||||||||
| (Dollars in Thousands, Except Per Share Data) | |||||||||||||||||||||||||||
| Change | Change | ||||||||||||||||||||||||||
| PERIOD-END HIGHLIGHTS: | Q3 2022 | Q2 2022 | $ | % | Q3 2021 | $ | % | ||||||||||||||||||||
| Total assets | $ | 2,048,501 | $ | 1,885,352 | $ | 163,149 | 9 | % | $ | 2,049,079 | $ | (578 | ) | -0 | % | ||||||||||||
| Gross loans | 1,587,901 | 1,500,379 | 87,522 | 6 | % | 1,301,972 | 285,929 | 22 | % | ||||||||||||||||||
| Deposits | 1,709,078 | 1,552,139 | 156,939 | 10 | % | 1,742,054 | (32,976 | ) | -2 | % | |||||||||||||||||
| Tangible equity | 156,575 | 151,251 | 5,324 | 4 | % | 139,715 | 16,860 | 12 | % | ||||||||||||||||||
| Tangible book value per share | $ | 18.80 | $ | 18.19 | $ | 0.62 | 3 | % | $ | 16.93 | $ | 1.87 | 11 | % | |||||||||||||
| Tangible equity / total assets | 7.64 | % | 8.02 | % | -38 Basis Points | 6.82 | % | +82 Basis Points | |||||||||||||||||||
| Gross loans / total deposits | 92.91 | % | 96.67 | % | -376 Basis Points | 74.74 | % | +1817 Basis Points | |||||||||||||||||||
| Noninterest-bearing deposits / | |||||||||||||||||||||||||||
| total deposits | 44.39 | % | 46.09 | % | -170 Basis Points | 45.39 | % | -100 Basis Points | |||||||||||||||||||
| QUARTERLY AVERAGE | Change | Change | |||||||||||||||||||||||||
| HIGHLIGHTS: | Q3 2022 | Q2 2022 | $ | % | Q3 2021 | $ | % | ||||||||||||||||||||
| Total assets | $ | 1,930,227 | $ | 1,864,196 | $ | 66,031 | 4 | % | $ | 1,985,894 | $ | (55,667 | ) | -3 | % | ||||||||||||
| Total earning assets | 1,849,242 | 1,783,017 | 66,225 | 4 | % | 1,912,697 | (63,455 | ) | -3 | % | |||||||||||||||||
| Gross loans | 1,523,442 | 1,464,922 | 58,520 | 4 | % | 1,316,080 | 207,362 | 16 | % | ||||||||||||||||||
| Deposits | 1,592,096 | 1,567,412 | 24,684 | 2 | % | 1,718,525 | (126,429 | ) | -7 | % | |||||||||||||||||
| Tangible equity | 155,448 | 150,176 | 5,272 | 4 | % | 138,833 | 16,615 | 12 | % | ||||||||||||||||||
| Tangible equity / total assets | 8.05 | % | 8.06 | % | -1 Basis Points | 6.99 | % | +106 Basis Points | |||||||||||||||||||
| Gross loans / total deposits | 95.69 | % | 93.46 | % | +223 Basis Points | 76.58 | % | +1911 Basis Points | |||||||||||||||||||
| Noninterest-bearing deposits / | |||||||||||||||||||||||||||
| total deposits | 46.41 | % | 46.86 | % | -45 Basis Points | 45.17 | % | +124 Basis Points | |||||||||||||||||||
| YEAR-TO-DATE AVERAGE | Change | ||||||||||||||||||||||||||
| HIGHLIGHTS: | Q3 2022 | Q3 2021 | $ | % | |||||||||||||||||||||||
| Total assets | $ | 1,907,661 | $ | 1,940,035 | $ | (32,374 | ) | -2 | % | ||||||||||||||||||
| Total earning assets | 1,826,172 | 1,864,166 | (37,994 | ) | -2 | % | |||||||||||||||||||||
| Gross loans | 1,453,741 | 1,382,074 | 71,667 | 5 | % | ||||||||||||||||||||||
| Deposits | 1,603,620 | 1,632,257 | (28,637 | ) | -2 | % | |||||||||||||||||||||
| Tangible equity | 150,587 | 134,771 | 15,816 | 12 | % | ||||||||||||||||||||||
| Tangible equity / total assets | 7.89 | % | 6.95 | % | +94 Basis Points | ||||||||||||||||||||||
| Gross loans / total deposits | 90.65 | % | 84.67 | % | +598 Basis Points | ||||||||||||||||||||||
| Noninterest-bearing deposits / | |||||||||||||||||||||||||||
| total deposits | 46.04 | % | 44.82 | % | +122 Basis Points | ||||||||||||||||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | ||||||||||||||||||||
| SELECTED INTERIM FINANCIAL INFORMATION (UNAUDITED) – ASSET QUALITY | ||||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES: | 09/30/22 | 06/30/22 | 03/31/22 | 12/31/21 | 09/30/21 | |||||||||||||||
| Balance, beginning of period | $ | 15,957 | $ | 15,032 | $ | 14,081 | $ | 13,571 | $ | 13,240 | ||||||||||
| Provision for loan losses, quarterly | 800 | 925 | 950 | 504 | 300 | |||||||||||||||
| Charge-offs, quarterly | (202 | ) | – | – | – | – | ||||||||||||||
| Recoveries, quarterly | – | – | 1 | 6 | 31 | |||||||||||||||
| Balance, end of period | $ | 16,555 | $ | 15,957 | $ | 15,032 | $ | 14,081 | $ | 13,571 | ||||||||||
| NONPERFORMING ASSETS: | 09/30/22 | 06/30/22 | 03/31/22 | 12/31/21 | 09/30/21 | |||||||||||||||
| Loans accounted for on a non-accrual basis | $ | 182 | $ | 549 | $ | 549 | $ | 232 | $ | 1,233 | ||||||||||
| Loans with principal or interest contractually | ||||||||||||||||||||
| past due 90 days or more and still accruing | ||||||||||||||||||||
| interest | – | – | – | – | – | |||||||||||||||
| Nonperforming loans | $ | 182 | $ | 549 | $ | 549 | $ | 232 | $ | 1,233 | ||||||||||
| Other real estate owned | – | – | – | – | – | |||||||||||||||
| Nonperforming assets | $ | 182 | $ | 549 | $ | 549 | $ | 232 | $ | 1,233 | ||||||||||
| Loans restructured and in compliance with | ||||||||||||||||||||
| modified terms | – | – | – | – | – | |||||||||||||||
| Nonperforming assets and restructured loans | $ | 182 | $ | 549 | $ | 549 | $ | 232 | $ | 1,233 | ||||||||||
| Nonperforming loans by asset type: | ||||||||||||||||||||
| Commercial | $ | – | $ | – | $ | – | $ | – | $ | – | ||||||||||
| Real estate other | – | – | – | – | 1,000 | |||||||||||||||
| Real estate construction and land | – | – | – | – | – | |||||||||||||||
| SBA | 182 | 549 | 549 | 232 | 233 | |||||||||||||||
| Other | – | – | – | – | – | |||||||||||||||
| Nonperforming loans | $ | 182 | $ | 549 | $ | 549 | $ | 232 | $ | 1,233 | ||||||||||
| ASSET QUALITY: | 09/30/22 | 06/30/22 | 03/31/22 | 12/31/21 | 09/30/21 | |||||||||||||||
| Allowance for loan losses / gross loans | 1.04 | % | 1.06 | % | 1.07 | % | 1.02 | % | 1.04 | % | ||||||||||
| Allowance for loan losses / nonperforming loans | 9096.15 | % | 2906.56 | % | 2738.07 | % | 6069.40 | % | 1100.65 | % | ||||||||||
| Nonperforming assets / total assets | 0.01 | % | 0.03 | % | 0.03 | % | 0.01 | % | 0.06 | % | ||||||||||
| Nonperforming loans / gross loans | 0.01 | % | 0.04 | % | 0.04 | % | 0.02 | % | 0.09 | % | ||||||||||
| Net quarterly charge-offs / gross loans | 0.01 | % | 0.00 | % | -0.00 | % | -0.00 | % | -0.00 | % | ||||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | ||||||||||||||||||||
| INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||||||
| (Dollars in Thousands, Except Per Share Data) | ||||||||||||||||||||
| Three months ended |
Nine months ended |
|||||||||||||||||||
| 09/30/22 | 06/30/22 | 09/30/21 | 09/30/22 | 09/30/21 | ||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||
| Loans | $ | 19,084 | $ | 16,298 | $ | 14,870 | $ | 50,268 | $ | 44,157 | ||||||||||
| Federal funds sold | 867 | 280 | 199 | 1,283 | 371 | |||||||||||||||
| Investment securities | 1,217 | 1,128 | 470 | 3,247 | 1,222 | |||||||||||||||
| Total interest income | 21,168 | 17,706 | 15,539 | 54,798 | 45,750 | |||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||
| Deposits | 1,672 | 796 | 1,152 | 3,274 | 3,481 | |||||||||||||||
| Other | 1,133 | 687 | 546 | 2,412 | 1,506 | |||||||||||||||
| Total interest expense | 2,805 | 1,483 | 1,698 | 5,686 | 4,987 | |||||||||||||||
| Net interest income | 18,363 | 16,223 | 13,841 | 49,112 | 40,763 | |||||||||||||||
| Provision for loan losses | 800 | 925 | 300 | 2,675 | (500 | ) | ||||||||||||||
| Net interest income after provision | ||||||||||||||||||||
| for loan losses | 17,563 | 15,298 | 13,541 | 46,437 | 41,263 | |||||||||||||||
| NON-INTEREST INCOME | ||||||||||||||||||||
| Service charges and other fees | 1,237 | 1,134 | 905 | 3,260 | 2,184 | |||||||||||||||
| Gain on sale of loans | – | – | – | 1,393 | – | |||||||||||||||
| Other non-interest income | 247 | 260 | 397 | 759 | 995 | |||||||||||||||
| Total non-interest income | 1,484 | 1,394 | 1,302 | 5,412 | 3,179 | |||||||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||||||||
| Salaries and benefits | 7,415 | 7,146 | 6,920 | 21,654 | 19,661 | |||||||||||||||
| Premises and equipment | 1,275 | 1,267 | 1,372 | 3,844 | 3,778 | |||||||||||||||
| Other | 2,527 | 2,406 | 2,221 | 7,454 | 6,989 | |||||||||||||||
| Total non-interest expense | 11,217 | 10,819 | 10,513 | 32,952 | 30,428 | |||||||||||||||
| Income before income taxes | 7,830 | 5,873 | 4,330 | 18,897 | 14,014 | |||||||||||||||
| Income taxes | 2,308 | 1,629 | 1,114 | 5,458 | 3,827 | |||||||||||||||
| NET INCOME | $ | 5,522 | $ | 4,244 | $ | 3,216 | $ | 13,439 | $ | 10,187 | ||||||||||
| EARNINGS PER SHARE | ||||||||||||||||||||
| Basic earnings per share | $ | 0.66 | $ | 0.51 | $ | 0.39 | $ | 1.62 | $ | 1.24 | ||||||||||
| Diluted earnings per share | $ | 0.66 | $ | 0.51 | $ | 0.39 | $ | 1.60 | $ | 1.23 | ||||||||||
| Average common shares outstanding | 8,322,529 | 8,295,014 | 8,244,154 | 8,298,269 | 8,211,907 | |||||||||||||||
| Average common and equivalent | ||||||||||||||||||||
| shares outstanding | 8,405,669 | 8,395,701 | 8,310,799 | 8,394,439 | 8,283,683 | |||||||||||||||
| PERFORMANCE MEASURES | ||||||||||||||||||||
| Return on average assets | 1.13 | % | 0.91 | % | 0.64 | % | 0.94 | % | 0.70 | % | ||||||||||
| Return on average equity | 13.45 | % | 10.80 | % | 8.72 | % | 11.37 | % | 9.57 | % | ||||||||||
| Return on average tangible equity | 14.09 | % | 11.34 | % | 9.19 | % | 11.93 | % | 10.11 | % | ||||||||||
| Efficiency ratio | 56.52 | % | 61.41 | % | 69.42 | % | 60.44 | % | 69.25 | % | ||||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | ||||||||||||||||||||
| INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||
| 09/30/22 | 06/30/22 | 03/31/22 | 12/31/21 | 09/30/21 | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 24,709 | $ | 20,378 | $ | 18,228 | $ | 4,539 | $ | 22,424 | ||||||||||
| Federal funds sold | 216,345 | 138,057 | 206,305 | 465,917 | 578,626 | |||||||||||||||
| Investment securities | 157,531 | 165,309 | 171,764 | 103,278 | 82,108 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial | 643,131 | 589,562 | 522,808 | 474,281 | 428,169 | |||||||||||||||
| Real estate other | 824,867 | 794,504 | 741,651 | 697,212 | 664,202 | |||||||||||||||
| Real estate construction and land | 71,523 | 63,189 | 51,204 | 43,194 | 41,312 | |||||||||||||||
| SBA | 8,565 | 13,310 | 44,040 | 81,403 | 107,096 | |||||||||||||||
| Other | 39,815 | 39,814 | 40,771 | 80,559 | 61,193 | |||||||||||||||
| Loans, gross | 1,587,901 | 1,500,379 | 1,400,474 | 1,376,649 | 1,301,972 | |||||||||||||||
| Unamortized net deferred loan costs (fees) | 1,902 | 2,570 | 2,434 | 1,688 | 760 | |||||||||||||||
| Allowance for loan losses | (16,555 | ) | (15,957 | ) | (15,032 | ) | (14,081 | ) | (13,571 | ) | ||||||||||
| Loans, net | 1,573,248 | 1,486,992 | 1,387,876 | 1,364,256 | 1,289,161 | |||||||||||||||
| Premises and equipment, net | 3,382 | 3,736 | 4,047 | 4,405 | 4,227 | |||||||||||||||
| Bank owned life insurance | 24,955 | 24,788 | 24,614 | 24,412 | 24,247 | |||||||||||||||
| Goodwill and core deposit intangible | 7,483 | 7,493 | 7,503 | 7,513 | 7,524 | |||||||||||||||
| Accrued interest receivable and other assets | 40,848 | 38,599 | 39,258 | 40,676 | 40,762 | |||||||||||||||
| Total assets | $ | 2,048,501 | $ | 1,885,352 | $ | 1,859,595 | $ | 2,014,996 | $ | 2,049,079 | ||||||||||
| LIABILITIES | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Demand noninterest-bearing | $ | 758,716 | $ | 715,432 | $ | 746,673 | $ | 771,205 | $ | 790,646 | ||||||||||
| Demand interest-bearing | 35,183 | 45,511 | 36,419 | 37,250 | 39,679 | |||||||||||||||
| Money market and savings | 597,244 | 626,156 | 686,781 | 717,480 | 750,112 | |||||||||||||||
| Time | 317,935 | 165,040 | 130,649 | 154,203 | 161,617 | |||||||||||||||
| Total deposits | 1,709,078 | 1,552,139 | 1,600,522 | 1,680,138 | 1,742,054 | |||||||||||||||
| Junior subordinated debt securities | 54,117 | 54,097 | 54,063 | 54,028 | 59,009 | |||||||||||||||
| Other borrowings | 100,000 | 100,000 | 32,166 | 106,387 | 79,536 | |||||||||||||||
| Accrued interest payable and other liabilities | 21,248 | 20,372 | 18,273 | 23,689 | 21,241 | |||||||||||||||
| Total liabilities | 1,884,443 | 1,726,608 | 1,705,024 | 1,864,242 | 1,901,840 | |||||||||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
| Common stock | 110,786 | 110,289 | 109,815 | 109,473 | 109,009 | |||||||||||||||
| Retained earnings | 54,628 | 49,106 | 44,862 | 41,189 | 38,008 | |||||||||||||||
| Accumulated other comprehensive (loss) | (1,356 | ) | (651 | ) | (106 | ) | 92 | 222 | ||||||||||||
| Total shareholders’ equity | 164,058 | 158,744 | 154,571 | 150,754 | 147,239 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 2,048,501 | $ | 1,885,352 | $ | 1,859,595 | $ | 2,014,996 | $ | 2,049,079 | ||||||||||
| – | – | – | – | – | ||||||||||||||||
| CAPITAL ADEQUACY | ||||||||||||||||||||
| Tier I leverage ratio | 8.21 | % | 8.27 | % | 7.84 | % | 7.23 | % | 7.29 | % | ||||||||||
| Tier I risk-based capital ratio | 7.98 | % | 8.09 | % | 8.49 | % | 8.62 | % | 9.17 | % | ||||||||||
| Total risk-based capital ratio | 11.57 | % | 11.84 | % | 12.49 | % | 12.75 | % | 13.92 | % | ||||||||||
| Total equity/ total assets | 8.01 | % | 8.42 | % | 8.31 | % | 7.48 | % | 7.19 | % | ||||||||||
| Book value per share | $ | 19.70 | $ | 19.09 | $ | 18.69 | $ | 18.24 | $ | 17.85 | ||||||||||
| Common shares outstanding | 8,327,781 | 8,317,161 | 8,270,901 | 8,264,300 | 8,250,109 | |||||||||||||||
| CALIFORNIA BANCORP AND SUBSIDIARY | ||||||||||||||||||
| INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED) | ||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||
| Three months ended September 30, |
Three months ended June 30, | |||||||||||||||||
| 2022 |
2022 |
|||||||||||||||||
| Yields | Interest | Yields | Interest | |||||||||||||||
| Average | or | Income/ | Average | or | Income/ | |||||||||||||
| Balance | Rates | Expense | Balance | Rates | Expense | |||||||||||||
| ASSETS | ||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||
| Loans (1) | $ | 1,523,442 | 4.97 | % | $ | 19,084 | $ | 1,464,922 | 4.46 | % | $ | 16,298 | ||||||
| Federal funds sold | 162,314 | 2.12 | % | 867 | 145,329 | 0.77 | % | 280 | ||||||||||
| Investment securities | 163,486 | 2.95 | % | 1,217 | 172,766 | 2.62 | % | 1,128 | ||||||||||
| Total interest earning assets | 1,849,242 | 4.54 | % | 21,168 | 1,783,017 | 3.98 | % | 17,706 | ||||||||||
| Noninterest-earning assets: | ||||||||||||||||||
| Cash and due from banks | 20,153 | 19,735 | ||||||||||||||||
| All other assets (2) | 60,832 | 61,444 | ||||||||||||||||
| TOTAL | $ | 1,930,227 | $ | 1,864,196 | ||||||||||||||
| LIABILITIES AND | ||||||||||||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Deposits: | ||||||||||||||||||
| Demand | $ | 40,044 | 0.08 | % | $ | 8 | $ | 42,380 | 0.08 | % | $ | 8 | ||||||
| Money market and savings | 600,100 | 0.62 | % | 938 | 636,692 | 0.37 | % | 582 | ||||||||||
| Time | 213,001 | 1.35 | % | 726 | 153,859 | 0.54 | % | 206 | ||||||||||
| Other | 154,101 | 2.92 | % | 1,133 | 119,970 | 2.30 | % | 687 | ||||||||||
| Total interest-bearing liabilities | 1,007,246 | 1.10 | % | 2,805 | 952,901 | 0.62 | % | 1,483 | ||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||
| Demand deposits | 738,951 | 734,481 | ||||||||||||||||
| Accrued expenses and | ||||||||||||||||||
| other liabilities | 21,094 | 19,139 | ||||||||||||||||
| Shareholders’ equity | 162,936 | 157,675 | ||||||||||||||||
| TOTAL | $ | 1,930,227 | $ | 1,864,196 | ||||||||||||||
| Net interest income and margin (3) | 3.94 | % | $ | 18,363 | 3.65 | % | $ | 16,223 | ||||||||||
| (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 net deferred loan fees of $100,000 and $83,000, respectively. | ||||||||||||||||||
| (2) Other noninterest-earning assets includes the allowance for loan losses of $16.0 million and $15.0 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 September 30, |
||||||||||||||||||
| 2022 | 2021 | |||||||||||||||||
| Yields | Interest | Yields | Interest | |||||||||||||||
| Average | or | Income/ | Average | or | Income/ | |||||||||||||
| Balance | Rates | Expense | Balance | Rates | Expense | |||||||||||||
| ASSETS | ||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||
| Loans (1) | $ | 1,523,442 | 4.97 | % | $ | 19,084 | $ | 1,316,080 | 4.48 | % | $ | 14,870 | ||||||
| Federal funds sold | 162,314 | 2.12 | % | 867 | 530,806 | 0.15 | % | 199 | ||||||||||
| Investment securities | 163,486 | 2.95 | % | 1,217 | 65,811 | 2.83 | % | 470 | ||||||||||
| Total interest earning assets | 1,849,242 | 4.54 | % | 21,168 | 1,912,697 | 3.22 | % | 15,539 | ||||||||||
| Noninterest-earning assets: | ||||||||||||||||||
| Cash and due from banks | 20,153 | 18,627 | ||||||||||||||||
| All other assets (2) | 60,832 | 54,570 | ||||||||||||||||
| TOTAL | $ | 1,930,227 | $ | 1,985,894 | ||||||||||||||
| LIABILITIES AND | ||||||||||||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Deposits: | ||||||||||||||||||
| Demand | $ | 40,044 | 0.08 | % | $ | 8 | $ | 36,696 | 0.09 | % | $ | 8 | ||||||
| Money market and savings | 600,100 | 0.62 | % | 938 | 735,785 | 0.52 | % | 961 | ||||||||||
| Time | 213,001 | 1.35 | % | 726 | 169,849 | 0.43 | % | 183 | ||||||||||
| Other | 154,101 | 2.92 | % | 1,133 | 102,287 | 2.12 | % | 546 | ||||||||||
| Total interest-bearing liabilities | 1,007,246 | 1.10 | % | 2,805 | 1,044,617 | 0.64 | % | 1,698 | ||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||
| Demand deposits | 738,951 | 776,195 | ||||||||||||||||
| Accrued expenses and | ||||||||||||||||||
| other liabilities | 21,094 | 18,719 | ||||||||||||||||
| Shareholders’ equity | 162,936 | 146,363 | ||||||||||||||||
| TOTAL | $ | 1,930,227 | $ | 1,985,894 | ||||||||||||||
| Net interest income and margin (3) | 3.94 | % | $ | 18,363 | 2.87 | % | $ | 13,841 | ||||||||||
| (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 net deferred loan fees of $100,000 and $1.0 million, respectively. | ||||||||||||||||||
| (2) Other noninterest-earning assets includes the allowance for loan losses of $16.0 million and $13.3 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) | ||||||||||||||||||
| Nine months ended September 30, | ||||||||||||||||||
| 2022 | 2021 | |||||||||||||||||
| Yields | Interest | Yields | Interest | |||||||||||||||
| Average | or | Income/ | Average | or | Income/ | |||||||||||||
| Balance | Rates | Expense | Balance | Rates | Expense | |||||||||||||
| ASSETS | ||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||
| Loans (1) | $ | 1,453,741 | 4.62 | % | $ | 50,268 | $ | 1,382,074 | 4.27 | % | $ | 44,157 | ||||||
| Federal funds sold | 217,008 | 0.79 | % | 1,283 | 422,050 | 0.12 | % | 371 | ||||||||||
| Investment securities | 155,423 | 2.79 | % | 3,247 | 60,042 | 2.72 | % | 1,222 | ||||||||||
| Total interest earning assets | 1,826,172 | 4.01 | % | 54,798 | 1,864,166 | 3.28 | % | 45,750 | ||||||||||
| Noninterest-earning assets: | ||||||||||||||||||
| Cash and due from banks | 19,550 | 17,223 | ||||||||||||||||
| All other assets (2) | 61,939 | 58,646 | ||||||||||||||||
| TOTAL | $ | 1,907,661 | $ | 1,940,035 | ||||||||||||||
| LIABILITIES AND | ||||||||||||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Deposits: | ||||||||||||||||||
| Demand | $ | 40,214 | 0.08 | % | 25 | $ | 35,031 | 0.11 | % | $ | 29 | |||||||
| Money market and savings | 652,849 | 0.45 | % | 2,185 | 684,995 | 0.56 | % | 2,858 | ||||||||||
| Time | 172,284 | 0.83 | % | 1,064 | 180,572 | 0.44 | % | 594 | ||||||||||
| Other | 125,108 | 2.58 | % | 2,412 | 144,501 | 1.39 | % | 1,506 | ||||||||||
| Total interest-bearing liabilities | 990,455 | 0.77 | % | 5,686 | 1,045,099 | 0.64 | % | 4,987 | ||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||
| Demand deposits | 738,273 | 731,659 | ||||||||||||||||
| Accrued expenses and | ||||||||||||||||||
| other liabilities | 20,848 | 20,966 | ||||||||||||||||
| Shareholders’ equity | 158,085 | 142,311 | ||||||||||||||||
| TOTAL | $ | 1,907,661 | $ | 1,940,035 | ||||||||||||||
| Net interest income and margin (3) | 3.60 | % | $ | 49,112 | 2.92 | % | $ | 40,763 | ||||||||||
| (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 net deferred loan fees of $501,000 and $3.3 million, respectively. | ||||||||||||||||||
| (2) Other noninterest-earning assets includes the allowance for loan losses of $15.0 million and $14.0 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: | Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | |||||||||||
| Net interest income | $ | 18,363 | $ | 16,223 | $ | 14,526 | $ | 13,967 | $ | 13,841 | ||||||
| Non-interest income | 1,484 | 1,394 | 2,534 | 994 | 1,302 | |||||||||||
| Total revenue | $ | 19,847 | $ | 17,617 | $ | 17,060 | $ | 14,961 | $ | 15,143 | ||||||
| PPP RELATED DEFERRED FEES | Amortization | Deferred | ||||||||||||||
| AND COSTS: | Deferred Balance at Origination | of Deferred | Balance | |||||||||||||
| 2021 Program | 2020 Program | Total | Balance | Remaining | ||||||||||||
| PPP fees | $ | 4,479 | $ | 9,086 | $ | 13,565 | $ | 13,505 | $ | 60 | ||||||
| PPP capitalized loan origination costs | 540 | 2,451 | 2,991 | 2,985 | 6 | |||||||||||
| Net PPP fees | $ | 3,939 | $ | 6,635 | $ | 10,574 | $ | 10,520 | $ | 54 | ||||||
| IMPACT OF PPP ACTIVITY REFLECTED | Amortization of Deferred Balance | |||||||||||||||
| IN NET INTEREST INCOME: | Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | |||||||||||
| PPP fees | $ | 293 | $ | 769 | $ | 1,014 | $ | 817 | $ | 1,909 | ||||||
| PPP capitalized loan origination costs | 15 | 102 | 223 | 109 | 348 | |||||||||||
| Net PPP fees | $ | 278 | $ | 667 | $ | 791 | $ | 708 | $ | 1,561 | ||||||
| NON-INTEREST EXPENSE: | Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | |||||||||||
| Total non-interest expense | $ | 11,217 | $ | 10,819 | $ | 10,916 | $ | 10,009 | $ | 10,513 | ||||||
| Total capitalized loan origination costs | 1,102 | 1,073 | 984 | 1,601 | 1,197 | |||||||||||
| Total operating expenses, before capitalization | ||||||||||||||||
| of loan origination costs | $ | 12,319 | $ | 11,892 | $ | 11,900 | $ | 11,610 | $ | 11,710 | ||||||
| GROSS LOANS: | 09/30/22 | 06/30/22 | 03/31/22 | 12/31/21 | 09/30/21 | |||||||||||
| Gross loans | $ | 1,587,901 | $ | 1,500,379 | $ | 1,400,474 | $ | 1,376,649 | $ | 1,301,972 | ||||||
| PPP loans | 3,797 | 7,843 | 36,905 | 72,527 | 97,451 | |||||||||||
| Gross loans, excluding PPP loans | $ | 1,584,104 | $ | 1,492,536 | $ | 1,363,569 | $ | 1,304,122 | $ | 1,204,521 | ||||||
