California Bancorp · NASDAQ:BCAL
California Bancorp — Q1 2021 Earnings Presentation
21 slides from California Bancorp's earnings presentation, May 4, 2021
Slide 1: Investor Presentation Q1 2021
Investor Presentation Q1 2021 Steven E. Shelton President & CEO Thomas A. Sa SEVP, CFO & COO Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements During the course of the presentation and any transcript that may result, written or otherwise, California BanCorp (the “Company”) may make projections or other forward-looking statements regarding a variety of items. Such forward-looking statements are based upon current
Slide 3: Overview of California Bancorp
Overview of California Bancorp Established in 2007 as a relationship focused commercial business bank serving Northern California with $1.9 billion in assets and market cap of ~$146 million(1) Majority of executive management joined the bank at inception Significant commercial core deposit base Prim
Slide 4: Investment Highlights
Investment Highlights Branch light, commercial focused business bank with strong middle market relationships throughout Northern California Experienced management team and seasoned C&I relationship teams with strong ties to the local markets Proven organic and acquisitive growth story Quality core d
Slide 5: 1st Quarter 2021 Highlights
1st Quarter 2021 Highlights 4 3 Strong Loan and Deposit Growth Gross loans increased $101 million, or 7%, from Q4 2020 to total $1.47 billion Core loans (ex. PPP loans) increased $54 million, or 5%, to $1.12 billion Total deposits increased $98 million, or 6%, to $1.63 billion Net Interest Income an
Slide 6: Branch Light, Commercial Focused Business Bank
Branch Light, Commercial Focused Business Bank Impressive Loan Growth Middle market commercial banking focus Privately owned companies with $30 million - $300 million in annual revenue Clients with minimum lending relationships of $2 million or $1 million in deposits Portfolio managed over the long
Slide 7: Taking Share from National/Regional Banks
Taking Share from National/Regional Banks ~$75 million in annual revenue $8 million revolving line with $3 million average outstanding $3 million equipment term loan $5 million commercial real estate loan $3 million demand deposit operating account $5 million money market accounts to hold surplus de
Slide 8: Experienced Management Team
Experienced Management Team Served as Executive Vice President and CCO from 2007 through 2017 Previously served in various executive management positions including Executive Vice President and Senior Lending Officer for Wells Fargo’s corporate bank and President & CCO of CivicBank of Commerce John L
Slide 9: Demonstrated Growth Track Record
Demonstrated Growth Track Record Successful Expansion Throughout Northern California $16 million common stock offering at $9.90 per share to fund growth in June 2014 $4 million private placement offering at $12.86 per share to payoff SBLF in May 2016 Completed acquisition of Pan Pacific Bank ($131 m
Slide 10: Strong and Growing Core Deposit Base
Strong and Growing Core Deposit Base Deposits increased $601 million from Q1-2020 to Q1-2021 Core deposit base driven by commercial clients 95%+ of commercial relationships hold deposits at the bank Core deposits comprise 89% of total deposits Utilize remote deposit capture and commercial cash manag
Slide 11: Diversified Commercial Loan Portfolio
Diversified Commercial Loan Portfolio Dollars in millions Data as of 12/31 for each respective year Reflects impact from PPP loans Excludes PPP loans Loan Portfolio Composition Operating LOC Usage Historical Loan Composition(1) 2015 – 2021Q1 CAGR C&I: 15.3% Total Loans: 21.4% 5.08% 4.88% 97% 96% 5.1
Slide 12: Commercial and CRE Loan Portfolios
Commercial and CRE Loan Portfolios Well-diversified loan portfolio mitigates risk Commercial Loan Portfolio(1) CRE Loan Portfolio(1) Data as a percent of total loans, $1.5 billion Data as of 3/31/2021
Slide 13: Paycheck Protection Program (PPP) Detail
Paycheck Protection Program (PPP) Detail PPP Loans (3/31/21) 806 PPP loans with balances of $353 million (24% of total loans) as of 3/31/21 compared to 632 PPP loans with balances of $306 million (22% of total loans) as of 12/31/20 437 first round PPP loans with balances of $236 million (16% of tota
Slide 14: COVID-19 Loan Deferral Program Detail
COVID-19 Loan Deferral Program Detail Loan Deferral Balances Deferrals Outstanding % of Total “Core” Portfolio Sector 6/30/20 9/30/20 12/31/20 3/31/21 6/30/20 9/30/20 12/31/20 3/31/21 Dental Practice Acquisition $ 137.8 $ 0 $ 0 $ 0 15% 0% 0% 0% Dental CRE 38.0 0 0 0 4% 0% 0% 0% Dental Total 175.8 0
Slide 15: Asset Quality Trends
Asset Quality Trends Net Charge-Offs (Recoveries) ($000s)1 Reserves / Loans Nonperforming Assets NCOs (Recoveries) / Avg. Loans (%)1 (1) Net charge-offs for 2020 were concentrated in Q2-2020 related to non-systemic issues 1.31% ex. PPP
Slide 16: Historical Profitability Trends
Historical Profitability Trends ROAA ROATCE Efficiency Ratio Net Interest Margin
Slide 17: Expense Levels Are Stabilizing
Expense Levels Are Stabilizing Operating Expenses Before Capitalized Loan Origination Costs Operating expenses before capitalized loan origination costs are stabilizing following investments in talent, product development and technology over last two years Continued strong balance sheet growth and s
Slide 18: Capital Ratios – Bank Only
Capital Ratios – Bank Only Data as of 12/31 for each respective year Closed $20.0 million subordinated debt offering to support consolidated capital ratios in 2020 TCE / TA Leverage Ratio Total Capital Ratio Tier 1 Ratio
Slide 19: 2021 Outlook and Priorities
2021 Outlook and Priorities Fully capitalize on the infrastructure put in place to generate additional balance sheet growth and realize increased operating leverage Continue growing loans as new banking talent added over past two years attracts new clients in our targeted markets, industries and ass
Slide 20: Summary
Summary > Northern California commercial business bank with a disciplined approach to credit underwriting > Experienced Executive Management Team and seasoned C&l Relationship Managers > Strong commercial loan portfolio with corresponding commercial relationship deposits > Keen focus on relationship
Slide 21: Please send questions to ir@bankcbc.com
Please send questions to ir@bankcbc.com Or Call 510.457.3751 CaliforniaBankofCommerce.com