California Bancorp · NASDAQ:BCAL
California Bancorp — Q2 2024 Earnings Presentation
20 slides from California Bancorp's earnings presentation, Jul 29, 2024
Slide 1: Investor Presentation Q2 2024
INVESTOR PRESENTATION Q2 2024 Steven E. Shelton CEO Thomas A. Sa President, 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
Based on CALB’s stock price of $21.50 as of 6/28/24 Walnut Creek Headquarters/Regional Office in Oakland Regional Offices in San Jose, Walnut Creek and Sacramento Branch services in Walnut Creek OVERVIEW OF CALIFORNIA BANCORP Established in 2007 as a relationship focused commercial business bank ser
Slide 4: Branch Light, Commercial Focused Business Bank
BRANCH LIGHT, COMMERCIAL FOCUSED BUSINESS BANK 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 term to ~41% C&I loans
Slide 5: Taking Share from National/Regional Banks
TAKING SHARE FROM NATIONAL/REGIONAL BANKS Combine Capabilities of a Big Bank with the High Service Levels of a Community Bank Attract top talent with deep market experience to compete against and win business from large banks Professional team with a consultative delivery process Invest in systems,
Slide 6: 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 7: Demonstrated Growth Track Record
Dollars in millions Tangible book value per share and capital offering price adjusted for historical stock splits Data as of 12/31 for each respective year DEMONSTRATED GROWTH TRACK RECORD $16 million common stock offering at $9.90 per share to fund growth in June 2014 $4 million private placement o
Slide 8: Strong Core Deposit Base
Dollars in millions Core deposits defined as total deposits less time deposits and brokered deposits. Data as of 12/31 for each respective year 2015 – Q2’24 CAGR DDA: 13.6% Total Deposits: 14.3% 0.23% 0.24% 0.35% Cost of Deposits 94% 93% 94% Core Deposit Mix 0.81% 88% 0.55% 91% 0.48% 87% 0.27% 91% 4
Slide 9: Diversified Commercial Loan Portfolio
Dollars in millions Data as of 12/31 for each respective year Excludes PPP loans DIVERSIFIED COMMERCIAL LOAN PORTFOLIO HISTORICAL LOAN COMPOSITION(1) OPERATING LOC USAGE LOAN PORTFOLIO COMPOSITION GROSS LOAN FUNDING VS. NET LOAN GROWTH(2) (3) 5.19% 96% 5.09% 97% 4.22% 89% Yield on Loans Loans /Depos
Slide 10: New Loan Production in 2Q24
NEW LOAN PRODUCTION IN 2Q24 BOOKING NEW LOANS AT ATTRACTIVE RATES(1) NEW LOAN FUNDINGS(1) WTD. AVG. RATE ON NEW LOANS(1) Funded new loans with balances of $23 million in 2Q24 compared to $11 million in 1Q24 and $43 million in 2Q23 Weighted average rate on newly funded loans was 9.22% in 2Q24 compare
Slide 11: CRE Loan Portfolio – Investor CRE
CRE LOAN PORTFOLIO – INVESTOR CRE Conservatively underwriting portfolio with an average LTV of 49% Active risk management, stress testing, and evaluation of portfolio results in early recognition and resolution of potential problem credits, consistently strong asset quality, and minimal losses in th
Slide 12: CRE Loan Portfolio – Investor CRE: Office
CRE LOAN PORTFOLIO – INVESTOR CRE: OFFICE INVESTOR CRE OFFICE COMPOSITION(1) PORTFOLIO HIGHLIGHTS CRE PORTFOLIO COMPOSITION INVESTOR CRE NON-MEDICAL OFFICE GEOGRAPHY(2) Office CRE represents 11% of total loan portfolio with more than 80% of credits being recourse loans Investor Office Non-Medical/De
Slide 13: Commercial Loan Portfolio
COMMERCIAL LOAN PORTFOLIO WELL-DIVERSIFIED PORTFOLIO WITH FOCUS ON STRONG BORROWERS IN RECESSION RESISTANT INDUSTRIES COMMERCIAL LOAN PORTFOLIO(1) COMMERCIAL – SPONSOR FINANCE(2) Data as a percent of total Commercial Loans, $612 million Data as a percent of total Sponsor Finance Loans, $210 million
Slide 14: Asset Quality Trends
NET CHARGE-OFFS (RECOVERIES) ($000S)(1) NONPERFORMING ASSETS RESERVES / LOANS (1) NCOS (RECOVERIES) / AVG. LOANS (%) CECL Methodology adopted 1/1/2023 ASSET QUALITY TRENDS
Slide 15: Asset Quality Trends: Risk Grade Segment Snapshot
ASSET QUALITY TRENDS RISK GRADE SEGMENT SNAPSHOT ($000’s) Special Pass Watch Mention Substandard Nonaccrual Total June 30, 2024 Commercial and Industrial $ 470,720 $ 35,196 $ 24,434 $ 72,233 $ 9,624 $ 612,207 Real Estate - Other 745,723 34,411 20,581 9,320 11,516 821,551 Real Estate - Const & Land 1
Slide 16: Historical Profitability Trends
ROATCE NET INTEREST MARGIN ROAA EFFICIENCY RATIO HISTORICAL PROFITABILITY TRENDS
Slide 17: Disciplined Expense Management Driving Greater Operating Leverage
Disciplined Expense Management Driving Greater Operating Leverage Investment phase in 2018-2019 (talent, product development, and technology) built highly leverageable infrastructure and strong commercial banking team Operating expenses in 1Q24 and 2Q24 include merger related costs of $1.0 million a
Slide 18: Capital Ratios – Bank Only
CAPITAL RATIOS – BANK ONLY Data as of 12/31 for each respective year Closed subordinated debt offerings to support consolidated capital ratios totaling $20 million in 2020 and $35 million in 2021 LEVERAGE RATIO TIER 1 RATIO TCE / TA TOTAL CAPITAL RATIO
Slide 19: Summary
Northern California commercial business bank with a disciplined approach to credit underwriting Proven organic and acquisition growth capabilities Strong commercial loan portfolio with corresponding commercial relationship deposits Experienced management team and seasoned C&I relationship managers K
Slide 20: Questions and Contact
Please send questions to ir@bankcbc.com Or Call 510.457.3751 CaliforniaBankofCommerce.com