California Bancorp · NASDAQ:BCAL
California Bancorp — Southern California Bancorp \ CA — Investor Presentation (May 2023)
29 slides from California Bancorp's investor presentation, May 11, 2023
Slide 1: Southern California Bancorp Investor Presentation
SOUTHERN CALIFORNIA BANCORP Investor Presentation March 31, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements FORWARD-LOOKING STATEMENTS. In addition to historical information, certain matters set forth herein constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including forward looking statements relating to management
Slide 3: Company Overview
Slide 4: Investment Highlights
Investment Highlights NW Market and Footprint & Southern California is the world’s 16" largest economy! ®& Bank's footprint covers the best small business banking market in the U.S. (950,000 small to mediumsized businesses in San Diego, Orange, Los Angeles, Ventura counties and the Inland Empire]? S
Slide 5: Southern California Bancorp
Southern California Bancorp Ata Glance Branch Footprint BCAL San Diego OTC Pink Headquarters $283M| | $2.3B 34% Market Cap Assets? 5-¥F Asset & fae cAGR* ON = Octamide Se 4 $2.0B 35% Bank Deposits? 5-¥r Deposit Acquisitions? SERS BANK OF "ALIFORNIA, SOUTHERN,
Slide 6: Attractive Market Position
Attractive Market Position Strategic locations in commercial markets with enormous potential customer base San Bernardino Los Angeles Riverside California is the largest banking market in the United States California GDP Largest economy in the Small Businesses world, behind India and ahead of United
Slide 7: Southern California Small Business Market Offers Best Opportunity in the U.S. for Commercial Banking
outhern Califor ess Market Offers Best Opportunity in the U ommercial Banking Key Takeaway: = Southern California is the largest market for small business operating companies in the United States fe) e e ° @ ° e e e @ e \ @ >75K Businesses 0 ‘Over 950K small businesses with 1-499 employees exist in
Slide 8: High Growth Franchise
High Growth Franchise % Since 2019, total assets have grown organically and through strategic acquisitions by $1.5 billion, or 176%, powered by a dedicated and accomplished team. July 2028 ‘Acquired Americas United Bank ‘November 2014 ($230MM Assets) Acquired Frontier Bank ($78MM Assets) 24a $424 $4
Slide 9: Experienced Leadership
Experienced Leade David Rainer Chairman and CEO of Southern California Bancorp and Bank of Southern California, N.A. Banking Experience: > 40 Years Manisha Merchant General Counsel and Corporate Secretary of Southern California Bancorp and Bank of Southern California Banking Experience: > 20 Years R
Slide 10: Our Vision for a Premier Banking Franchise
"ALIFORNIA, RP Strong Leadership & Experienced teams living and working in their respective Southern California communities, and actively involved in local organizations & Reputation and credibility of leadership attracts top talent in the market ® Bank Advisory Boards composed of local business and
Slide 11: Financial Highlights
Slide 12: Q1 2023 Results
Q1 2023 Results Financial Results Key Metrics (for the quarter ended March 31, 2023) (for the quarter ended March 31, 2023) $8.2 Million 1.46% Net Income Return on Average Assets (ROAA) $0.44 5 Diluted Earnings Per 12.72% Return on Average Common Share Equity (ROACE) $11.4 Million 4.71% Pre-tax, Pre
Slide 13: Q1 2023 Results Continued
Q1 2023 Results Continued Strong Balance Sheet Continued Strong Credit Quality (At March 31, 2023) (At March 31, 2023) $2.29 Billion 0.000% Total Assets Non-performing Assets/Total Assets $1.89 Billion 0.000% Total Loans* Non-performing Loans/Total Loans $1.99 Billion 1.27% Allowance for Credit Loss
Slide 14: Net Interest Margin
Net Interest Margin Cost of Funds, months ended March 31, 2023 Yield on Earning Assets, for three months ended March 31, 2023 ts ($n thousands) ‘Avg. Balance Income __Yield Total loans-non-PPP $1,890,758 $27,005 5.79% ‘otal loans-PPP! 3,476 14 1.63% Liabilities and Shareholders’ Equity (Sin thousand
Slide 15: Current Expected Credit Loss (CECL) Implementation
Current Expected Credit Loss (“CECL”) Implementation 00 $2406 $567 5233876 169 — : — = — — 575) oa on $18109 ay 1 Adjustment Economic Forecast, Laan Composton Provision for RUC cec.y24/23) ‘NL 085 82/01/2) cect oay 10/1729 cred auatty data Factors charge tfRecovery + Day 1 CECL transition adjustment
Slide 16: Negligible Impact of Unrealized Losses on Capital
Negligible Impact of Unrealized Losses on Capital «= Total unrealized losses were 3.26% of CET1 Capital as of March 31, 2023. = Even if interest rates rise another 300 bps, the Bank's capital ratios remain above Well-Capitalized guidelines. Parallel Rate Shock Scenarios (Doles in Thousands) 1023 Ava
Slide 17: Debt Securities, AOCI and Tangible Common Equity
Debt Securities, AOCI and Tangible Common Equity As of March 31, 2023 AFS Securities (fair value) 70% of portfolio, 3.24% tax equivalent yield portfolio, 3.11% tax equivalent yield “\ 9% © NIMBS —MSBASecurties mM US.Treasury @US.Agency CMO. Taxable Municipals mTax Exempt Municipals $240.0 12.0% 10.1
Slide 18: Low-Cost Core Deposits
Low-Cost Core Deposits ; Cost of Deposits for Deposit Mix and Growth! the period ended: 100% 080% co 070% 11% ton 80% 050% 70% 040% con 030% . —_ 0.25% 50% 020% < “ 00% 1022 2022 3022 4022 1023 30% f - Total Deposits? (SMM) roe $2100 ——s2,013 $2030 $2920 ee 10% 2.000 suse ie $1,900 122 3022 4022 sa.
Slide 19: Significant Access to Liquidity & Funding Capacity
Significant Access to Liquidity & Funding Capacity ‘= Ample access to on-Balance Sheet (BS) and off-BS liquidity (as of 3/31/23) * On-Balance Sheet Cash = $102.1 million * Total Borrowing Capacity = $638 million * Total Available Liquidity = $864.5 million * Continue to increase borrowing capacity a
Slide 20: Diverse Loan Portfolio
Diverse Loan Portfolio Yield on Loans, Total Loan! Portfolio, a: for the quarter ended 5.0096 ee \ 5.78% Other consumer construction 4.74% development 4.70% tad 1% 400% Laas _-1-0seR 8% 2.0% 2.00% 1022-2022, 3022, 40221028 - sainctsanyazse —Viedon oars veld on oas,exPPP Total Loans? (SMM), at the qu
Slide 21: Disciplined Credit Culture
Disciplined Credit Culture oe ne iat 0.09% At quarter end: 0.08% 0.06% Nonacervaltoans 1-4 Family $991 $604 $41 $39 + liad CRE & Multifamily 678 303 2 0.02% uct : re 0.002% _- 0.002% ‘Construction 0.00% % 0.00% ‘Consumer 7 - - 1Q22 2022 3022 4022 1023 Commercial 101 ee ee @ Total Nonaccrual Loans $1
Slide 22: Investing for the Future...
Investing for the Future... Noninterest Expense (SMM) Total Revenue? (SMM) for the quarter ended for the quarter ended Our successful recruitment of in-market talent 3250 50.0% positions us well for the future _. future 200% 200 ad th 00% ee Grow Gee —e 5 as $24 $150 . z 60.0% == 5 50.0% no S194 $10
Slide 23: ... While Building Value for Shareholders
... While Building Value for Shareholders Adjusted Net Income?3 (SMM) Tangible Book Value Per Share (TBVPS)*? si00 145% 1.46% sz 127% feo orang 205% 38% =f $60 oy $85 $8.2 SEK $1232 540 “9.33% — 122 2 022 saz 103 a az zz -_ sm just netncome Ades ROAM" mmstev75 ——rone Adjusted Pre-Tax Pre-Provision I
Slide 24: Strong Capital Base
Strong Capital Base OK ca 103% so 15% say 29% ase 110% 109% aw 1% oa 82% gay 22% eon , r il I | 1 iJ ya 2001 saat aaat 1022 son 103 an 20213021 1022 1023 Total Risk-Based Total Rsk Based Copal Ratio" | Ratio” | Total Risk-Based Capital Ratio”? | Leverage Ratio”? m12% 7.4% snes 16.2% iam noe 106% 318
Slide 25: Appendix
Appendix
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation fangible common equity to tangible assets {ite "tangible common equity ratiov] ana tangible book value per share sre non-Us. GAAP fiaricial measures derive e femourtes We cateviste the Tangle common equity ratio by excluding the balance of intangible assets from common stockh
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation For periods presented below, efficiency ratio and adjusted efficiency ratio are non-U.S. GAAP financial measures derived from U.S. GAAP-based amounts, The efficiency ratio represents the ratio of noninterest expense to the sum of net interest income and total noninterest inco
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Pre-tax, pre-provision income and adjusted pre-tax, pre-provision income are non-U.S. GAAP financial measures derived from U.S. GAAP-based amounts, We calculate pre-tax, pre provision income by excluding income tax and provision for credit losses from net income. We calculate
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation ‘The following table presents a reconciliation of non-GAAP financial measures to GAAP measures for: (1) adjusted net income, (2) average tangible common equity, (3) adjusted return on average assets, (4) adjusted return on average equity, (5) return on average tangible common
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