California Bancorp · NASDAQ:BCAL
California Bancorp — California BanCorp \ CA — Q1 2025 Earnings Presentation
33 slides from California Bancorp's earnings presentation, Apr 24, 2025
Slide 1: Investor Presentation March 31, 2025
Investor Presentation March 31, 2025 CALIFORNIA CALIFORNIA BANCORP BANK OF COMMERCE
Slide 2: Forward-Looking Statements
Forward-Looking Statements CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS In addition o historical information, this release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Forward-looking statements relate o expectations, belief,
Slide 3: Company Overview
Company Overview
Slide 4: Investment Highlights
Investment Highlights ‘Market and Footprint California is the world’s 5" largest economy and the largest banking market in the US.! Bank's footprint covers the best small to middle-market business banking markets in California (1.7 million small to medium-sized businesses in the counties we service}
Slide 5: California BanCorp
California BanCorp Ata Glance Branch Footprint San Diego Headquarters $409M Market Cap! 1 Motket data as of Ap 16,2025 2. Over the past 10 years. 5. Ascot Mecn 31,2025, 5 4. Comoound annual grow rate [CAGR] over fve-yearpead enced March 31.2025,
Slide 6: Attractive Market Position
Attractive Market Position California is the Largest Banking Market in the United States 39MM 2028 Population® $3.9T Sih California GOP! Largest economy in The world behind Germany ene chsad ‘Sinda® BCAL's Southern California Footprint $1.6T 16th 23MM Combined GDP! 2028 Population? Largest econemy i
Slide 7: High Growth Franchise
High Growth Franchise % Since 2019, total assets have grown a organically and through strategic Sonociaite M&A by $3.2 billion, or 380%, ($425MM Assets) powered by a dedicated and accomplished team. November 2020 David Rainer joined BCAL May 2020 Joly 2018 Acquired CalWest Actulted Americas | [Banco
Slide 8: Experienced Leadership Team
Experienced Leadership Team Steven Shelton Chief Executive Officer David |. Rainer Executive Chatman Banking Experience: Banking Experience: Sai veus. > 40 Years Peter Nutz Chief Credit Officer, Bank Banking Experience: > 20 Years Richard Hernandez President Banking Experience: > 25 Years Jean Caran
Slide 9: Our Vision for a Premier Banking Franchise
Our Vision for a Premier Banking Franchise Strong Leadership + Experienced teams living and working in their respective California communities, and actively involved in local organizations + Reputation and credibility of leadership attracts top talent in the market + Bank Advisory Boards composed of
Slide 10: Financial Highlights
Financial Highlights
Slide 11: Post Merger Our TBV and Capital Ratios Have Increased
Post Merger Our TBV and Capital Ratios Have Increased Financial Highlights in millions except per share data Q1 2025 Q4 2024 Q3 2024 Net Income (Loss) Diluted EPS Pre-tax, Pre-provision Income (PTPP)' Return on Average Assets Adjusted Retum on Average Assets’ Retum on Average Common Equity Adjusted
Slide 12: Balance Sheet
Balance Sheet S in 0005 Assets Liabilities Shareholders’ Equity March 31, December31, September 30, July 31 2025 2024 2024 2024 Cosh and Cash Equivalents $499,241 $388,162 $614,423 $493,088 Debt Securities 184787 195,281 212,694 219,674 Loans Held for Sale. 4625 17,180 33,704 7.338 Loans Held! for i
Slide 13: 1Q25, 4Q24 and 1Q24 Income Statements
1Q25, 4Q24 and 1Q24 Income Statements Interest Income Leans Secutties ‘Other interestincome For the three months ended Total interest Income. Interest Expense Deposis Borrowings Total interest Expense Net Interest income Reversal of credit losses Net Interest Income afer Reversal of Credit Losses. N
Slide 14: Net Interest Margin
Net Interest Margin Yield on Earnir S: Cost of Fund: h ee months ended Mar Total loans $3,109,722 $50,686 6 Interest-bearing NOW accounts $735,209 $3,366 1.86% Taxable debt securities 139.481 1,524 Money market and savings accounts 1,161,960 7,750 2.70% Tax-exempt debt securities! 53,522 305 Time de
Slide 15: Low-Cost Core Deposits
Low-Cost Core Deposits Deposit Mix and Growth Cost of Deposits for the quarter ended at quarter ended: 1008 brokered 250% —2.05% 2.12% epost 90% EM cow 0% 2.00% 09% » 1.59% 20% 150% aa 1.00% 70% a oso, oon 0.00% a = 1a24 2024 3Q24 4024 1925 408 Total Deposits at quarter ended ($MM) 308 $4000 $3741 $
Slide 16: Significant Access to Liquidity & Funding Capacity
Significant Access to Liquidity & Funding Capacity [Rrcewereey| (EY AST) accesso ample on-totonce sheet (85) and ‘AS of 3/31/2025 ‘Bin milions) Off-BS liquidity (as of 3/31/25) seal $ 7219 _ $ 439.2 + On-BS Cash = $439.2 million AFS Securities 131.6 13.1 118.5 ‘an, rule ai ae — + Total Borrowing Cap
Slide 17: Loan Portfolio
Loan Portfolio Total Loans ' ($MM), ct the quarter ended $3,000 $2,500 $2,000 _. 4 LI $1,000 1924 2024 004 1028 Yield on ‘Loans, for the quarter ended 750% 700% 6.79% 6.84%, eso 6.61% 6.02% 6.00% 550% 5.00% 450% 1024 2024 3024 4a24 1025 |. Total loans include loans held for sole and loans held ferin
Slide 18: Commercially Focused Relationship Based Loan Portfolio
Commercially Focused | Relation sponsor Finance” 95% 22% 1-4 SER 5.2% Construction & Land Dev, 72%, Total Loans! $3.07 billion CRE ® 57.1% cal 19.8% os loans hell fora hip Based CRE - Office 9.0% CRE - Others 5.6% CRE - Hotel, 4.47% CRE Special Purpose 3.8% CRE. Medical/Dental Office 3.6 je anal loa
Slide 19: Low LTV Commercial Real Estate Loans
Low LTV Commercial Real Estate Loans 260% 10 65% 90% 10% eS - sve to.6on__| _ «sox 12% 3 _ 70% 290% 10 5% 1% 60% illions) ar Balance ize 50% CRE — Industrial 275 $522.2 $1.9 47% CRE - Office 138 $275.8 $2.0 52% a% CRE —Retail 169 $290.1 $17 43% 30%, CRE Special Purpose: 59 $115.6 $2.0 39% Gest, CRE=
Slide 20: CRE Office and Medical/Dental Office
CRE Office ar ical/Denta Out of State 27% <$05 46 Sia $0.2 42% California - Califomia - Los Angeles 3$05-$2 59 $531 $09 45% Sacramento 26.0% 2$2-$5 19 $573 $3.0 35% ee 3$5-$10 7 $a74 S68 60% 3$10- $20 5 $62.1 $12.4 48% > $20 2 $448 $22.4 58% CRE - Office 138 $275.8 $2.0 52% = Calitorhig= Bay Atea Ca
Slide 21: Multifamily Loans
Multifamily Loans Itifamily Loans Distribution by LTV! Multifamily Loans by Location’ Out of State, 9%, Loan Size No. of Average Weighted California - Boy Area, ($ in millions) Loans Balance? Loan Size__Avg. LTV 9.3% < $0.5 23 $6.9 $0.3 33% California - >$0.5 - $2 31 $35.7 $1.2 48% 13, >$2-$5 29 $88
Slide 22: Loans Held for Investment by Risk Category
Loans Held for Investment by Risk Category Special Pass Mention Substandard* Doubtful Loss __Nonaccrual® Total (Sin Thousands} March 31, 2025 Construction and Land Development $ 191370 $ 13,600 $ 178 $ = $ = § 14659 $ 221,437 Real Estate - Other: 1-4 Family Residential 154,729 : 2,713 : 197,442 Mult
Slide 23: Credit Profile
Credit Profile NPAs / Assets 1.000% Nongccrual Loans 1:4 Family SS «$285 $2,895 § 0.800% aa 0.68% ‘CRE & Multifamily 61834686 9432-8 S15—1.763 Gg GO Q% Construction - - 91059659 14659 Consumer - : - = = 0.400% Commercial - ~ 4002417 6,358 Total Nonaccrual $6153 $4696 $25,661 $26,386 $22,780 0.200% 0
Slide 24: Allowance for Credit Losses — Loans
Allowance for Credit Losses — Loans as of and for the Three Months Ended March 31, 2025 ($3.2 million) provision breakdown $50,530 ($522k) ($1,542k) balance ($2,866K) $45,839 ($872k) 46m 52K) ($1,048K) > Duting the first quarter of 2025, the reversal of provision for credit losses for loans held for
Slide 25: Noninterest Expense and Total Revenue
Noninterest Expense and Total Revenue Total Revenue? ($MM) for the quarter ended: Noninterest Expense ($MM) for the quarter ended: s4oo 100.0% $45.5 $448 $35.0 s0.0% 45.0 s200 . gs 37% a soo $38.1 £ 56.0% 55.6% 70.0% s250 350 60.0% 300 s200 s “ 0 S219 $22.2 saso S 00% x00 = 30.0% 15.0 $50 . 20.0% 10
Slide 26: Income Metrics
Income Metrics Net Income (Loss)? ($MM) Tangible Book Value Per Share (TBVPS) |? 5200 1.60% 1.71% 2.00% 17.759600% soo 086% $0.2 y sm 10.00% — ‘ aor 0% $00 0.00% s100 ‘Soe $800 = $20.0 2.00% - 1024 2024 3024 ozs 1025 $0.00 30.00% Pre-Tax Pre-Provision Income Diluted Earnings (Loss) Per Sha $0.26 $6.
Slide 27: Tangible Common Equity Ratio and Capital Ratios
Tangible Common Equity Ratio! Tier 1 Ratio®? org WS VR six 83% 133% loam 103% 105% 107% 109% 97% 12.6% 26% nae 0% nx 1% | nae laz3 223 cars 4x3 124 2024 saz4 4a24 1a25, 1oz3 2023 s0z340r31azh name aan az} 1S Total Risk-Based Capital Ratio” Leverage Ratio 14.3% 44% tae mK ue ROK aK LA 2% nay use nx 2
Slide 28: Appendix
Appendix
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Pre-tax, pre-provision income and adjusted pre-tax, pre-provision income are non-US. 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 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation Efficiency ratio and adjusted efficiency ratio are non-US. GAAP financial measures derived from US. GAAP-based amounts. The efficiency ratio represents the ralio of noninterest expense fo the sum of net interest income and total noninterest income. The adjusted efficiency rat
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation Tangible commen equity to tangible assets {the "tangible common equity ratio’) and tangible book value per share are non-US. GAAP financial measures derived from U.S. GAAP-based ‘amounts. We calculate the tangible common equity ratio by excluding the balance of intangible ass
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation The following table presents a reconeiliation 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
Slide 33: California BanCorp
CALIFORNIA BANCORP CALIFORNIA BANK OF COMMERCE
California BanCorp \ CA — Q1 2025 Earnings Presentation on 6ix