California Bancorp · NASDAQ:BCAL
California Bancorp — California BanCorp \ CA — Q4 2024 Earnings Presentation
33 slides from California Bancorp's earnings presentation, Feb 12, 2025
Slide 1: Investor Presentation December 31, 2024
Investor Presentation December 31, 2024 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 servic
Slide 5: California BanCorp At a Glance
California BanCorp Ata Glance Branch Footprint 4 Bank ‘Acauistions?
Slide 6: Attractive Market Position
Attractive Market Position California is the Largest Banking Market in the United States $3.91 on 39MM 1.7MM Calitomia GOP Largest econemy in 2028 Population Small Businesses The word behind Gemany ent aneod ‘Olinda, BCAL's Southern California Footprint $1.6T 16th 23MM 1MM Combined GOP Largest econo
Slide 7: High Growth Franchise
High Growth Franchise % July 2024 Closed merger of $4,032 Since 2019, total assets have grown ‘October 2021 California BanCorp and organically and through strategic Acquired Bank of Southern Calfomia MBA by $3.2 billion, or 386%, powered pemeniele Bancorp ($1.868 Assets) by a dedicated and accomplis
Slide 8: Experienced Leadership Team
Experienced Leadership Team David |. Rainer Steven Shelton Richard Hernandez Thomas Dolan Michele Wirfel SieGulive Ghasmnary Chief Executive Officer President (tie! nancial Officer, Chief Operating Officer Banking Experience: Banking Experience: Banking Experience: Banking Experience: Banking Experi
Slide 9: Our Vision for a Premier Banking Franchise
Our Vision for a Premier Banking Franchise & Strong Leadership + Experienced teams living and working in their respective California communities, and actively involved in local organizations + Reputation and credibility of leadership attracts top talent in the market + Bank Advisory Boards composed
Slide 10: Financial Highlights
Financial Highlights
Slide 11: Post Merger Our TBV and Capital Ratios Have Increased
Post Merger Our TBV and Capital Ratios Have Increased Financial Highlights ($ in millions except per share data) Net Income (Loss) Diluted EPS Pre-tax, Pre-provision Income (PTPP)' Return on Average Assets Adjusted Return on Average Assets’ Return on Average Common Equity Adjusted Return on Average
Slide 12: Balance Sheet
Balance Sheet December 31, September 3( July 31, December 31, S in 000s) 2024 2024 2024 2023 Assets Cash and Cash Equivalents $388,162 $614,423, $493,088 $86,793 Debt Secuiities 195,281 212,694 219,674 183,651 Loans Held for Sale 17,180 33,704 7,338 7349 Loans Held for Investment 3,139,165 3,199,714
Slide 13: 4Q24 Income Statement
4Q24 Income Statement For the three and 12 months ended Income Statement (5 in 000s) Interest Income Leans Secures Other interest income Total Interest Income Interest Expense Deposits Borrowings Total Interest Expense Net interest income {Reversal of) provision for crecit losses Net Interest Income
Slide 14: Net Interest Margin
Net Interest Margin $3,184,918 6.84% Total loans 54,791 Taxable debt securities 147.895 1,698 4.57% Tax-exempt debt securities! 53,607 305 287% Deposits in other financial institutions 422,082 5,123 4.83% Fed fund sold/resale agreements 3,353 38 4.51% Restricted stock investments and other bank stoc
Slide 15: Low-Cost Core Deposits
Low-Cost Core Deposits it Mix and Growth Cost of Deposits for the quarter ended uarter ended: 2.15% 05% £ 212% n 210% — 2.09% 208 E 5 205% 200% ie 195% = z : 150% 1.87% 181% = 85% 70% 0% % 6% mm cae. 175% 008 170% 165m 50% * 4Q23 1924 2024 3Q24 4Q24 on Total Deposits at quarter ended ($MM) 208 $4000
Slide 16: Significant Access to Liquidity & Funding Capacity
Significant Access to Liquidity & Funding Capacity ‘As of 12/31/2024 ‘Bin iors) Off-BS liquidity (as of 12/31/24) Cash $ 388.2 0 § - $ 388.2 + On-Balance Sheet Cash = $388.2 million Brssecuies Lee _ a4 + Total Borowing Capacity = $1.19 billion FHLB 7809 270 7539 Fed DW 3185 - 3185 + Total Available
Slide 17: Loan Portfolio
Loan Portfolio Total Loans ! ($MM), at the quarter ended [Contractual Maturity Summary for the next 3 years as of December 31, 2024 (sin mitions) <1year 1-2,Years >2-3 Years x00 %of total %of total ‘%of total —S__toans__$ _toans__$_toans_ Construction & land development $980 «61% «G28B~«COH«SLZ (OOK
Slide 18: Diverse Loan Portfolio
Diverse Loan Portfolio Total Loan Portfolio!, as of December 31, 2 Total CRE 3 by Location’, as of December 31, 202 Commercially Focused | Relationship Based California - other?0.8% peices Out of state 6% 8% ‘Multifamily raser 7.7%. 5.2%, Sponsor Los Angeles % Total Loans’ $3.16 billion, Total CRE L
Slide 19: Low LTV Commercial Real Estate Loans
Low LTV Commercial Real Estate Loans CRE NOO vs CRE OO by Property >ssmto70% 720% 100% ¢ o% i 260% 10 65% 90% 10% 255% 10 60% oe 80% cre 105% ne ‘oa% 70% 250% to 85% ue 60% Balance? _ Average Loan Size 50% CRE = Industrial 28 $5279 $19 47% CRE = Office 140 $2772 $20 51% a (CRE = Retell 169 $2812 $17
Slide 20: Out of State
Out of State 2.9% <$0.5 47 $11.2 $0.2 42% California - ~ 380.5 -$2 61 $555 $0.9 45% Sacramento Gal ee Angeles 2$2-$5 18 $540 $3.0 53% 14.2% 3$5-510 7 sa77__ $6.8 57% 3$10- $20 5 $660 $12.8 48% >$20 2 $44.8 $22.4 58% CRE Office 740 327.2 $2.0 51% Califorpie= Bay Area California=San Diego 26.8% é <$05
Slide 21: Multifamily Loans
Multifamily Loans Itifamily Loans Distribution by LTV! Multifamily Loans by Location Out of State, 9.3% Loan Size No. of Average = W California - Bay Area ($ in millions) Loans Balance? Loan Size__Avg. LTV 9%, < $0.5 23 $6.5 $0.3 36% >$0.5 - $2 32 $37.2 $1.2 47% California 4 >$2-$5 28 $84.3 $3.0 58%
Slide 22: Loans Held for Investment by Risk Category
Loans Held for Investment by Risk Category Special Pass Mention Substandard’ Doubtful __Loss ____Nonaccruat Total (Sin Thousands} December 31, 2024 Construction and Land Development S$ 203484 <§ ~=«12.481—«§ il $ - $ - $ 9059 $ 297,325 Real Estate - Other: 1-4 Family Residential 157,038, - 4,468 2,8
Slide 23: Credit Profile
Credit Profile NPAs / Assets 1.000% Nonaccrual Loans 0.84% 1-4 Family S$ - S$ - $ - $2895 $2,895 0.800% O:55%, 0.76% ‘CRE & Multifamily 13,004 61534696 -9.432 8815 Gago Z Construction - - - 9108 9,659 Consumer - : - - = 0.400% Commercial - : = 4002 _4,917 Total Nonaccrual $13,004 $6,153 $4,696 $25,6
Slide 24: Allowance for Credit Losses
Allowance for Credit Losses as of and for the Three Months Ended December 31, 2024 601K 54M 553,552K $146k ($148k) ($316K) ($1,718) balance $50,540K ($1,527K) ($143k) 4am om > Al merger close on July 31, 2024, $11.2 million initial one-time allowance for PCD loans acquired in the Merger was recorded
Slide 25: Noninterest Expense and Total Revenue
Noninterest Expense and Total Revenue Noninterest Expense ($MM) Total Revenue? ($MM). for the quarter ended: for the quarter ended: $10.0 98.9% 300.0% $35.0 s0.0% 6s 80.0% a $300 we $250 5 » $200 2% $150 20 s100 s $50 wo $00 5 4023 1024 2024 3024 4a24 ° fm Noniterest expense me Merger expense : a 40
Slide 26: Income Metrics
Income Metrics Net Income (Loss)> ($MM) Tangible Book Value Per Share (TBVPS) $200 1.60% 2.00% oem a vA 18,0498°0% oo una y0.03% ome 2.0% $100 ome $5.00 ene 200 1.82% 200% pai 202 a2 raze 22 aaa se.00 so.00% 4023 12s 202s a4 a4 mm Netincome ROA’ Pre-Tax Pre-Provision Income!’ ($MM) $0.51 $19.4 $0.24
Slide 27: Tangible Common Equity Ratio and Tier 1 Ratio
Tangible Common Equity Ratio! Tier 1 Ratio? 13.1% 13.3% 11.3% 11.3% 12.4% 12.6% 12.4% % 10.5% 10.7% 11.7% 12.1% 9.0% 10.1% 10.3% 9.69% 11.1% 11.4% | I I 4Q22 1Q23 -2Q23.- 3Q23. 4Q23 1Q24 2Q24 3Q24 4Q24 4022 1023 2023 3Q23 4023 1024 2024 3024 4Q24 F : A) A Total Risk-Based Capital Ratio Leverage Rati
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-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 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 reconciliation of non-GAAP financial measures to GAAP measures for: () 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 35
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