OAKLAND, Calif., April 30, 2021 (GLOBE NEWSWIRE) -- California BanCorp (NASDAQ: CALB), whose subsidiary is California Bank of Commerce, announced today its financial results for the first quarter ended March 31, 2021.

The Company reported net income of $2.8 million for the first quarter of 2021, representing an increase of $1.0 million, or 57%, compared to $1.8 million for the fourth quarter of 2020 and an increase of $2.3 million, or 494%, compared to $473,000 in the first quarter of 2020.

Diluted per share earnings of $0.34 for the first quarter of 2021 compared to $0.22 for the fourth quarter of 2020 and $0.06 for the first quarter of 2020.

“We delivered a record quarter of earnings in the first quarter driven by our continued strong core loan and deposit growth, which we were able to generate while also helping clients access the Paycheck Protection Program (“PPP”) and originating a significant volume of loans in the second round of the program,” said Steven Shelton, President and CEO of California BanCorp. “The commercial banking platform we have built with highly experienced bankers offering sophisticated financial products and services through a relationship-based approach is enabling us to continue to take market share, win full banking relationships with high quality operating companies, and originate loans with attractive risk-adjusted yields that support our net interest margin. Our success in loan production and deposit gathering is resulting in strong balance sheet growth, improving operating leverage, and a higher level of profitability. During the first quarter, we saw balanced loan production across our commercial banking platform, as the investments we have made to expand our presence in key markets and develop expertise in niche lending areas continue to produce good results. Our new business pipeline remains healthy, which we believe positions us well to continue driving the growth in our balance sheet that will lead to further improvement in our profitability in the future.”

Financial Highlights:

Profitability - three months ended March 31, 2021 compared to December 31, 2020

• Net income of $2.8 million and $0.34 per diluted share, compared to $1.8 million and $0.22 per share, respectively.
• Revenue of $14.3 million increased $578,000, or 4%, compared to $13.7 million for the fourth quarter of 2020.
• Provision for loan losses decreased $400,000 due to improved credit quality and continued adjustments in the qualitative reserve assessment in response to general macroeconomic changes related to COVID-19 as it pertains to our overall loan portfolio.
• Non-interest expense, excluding capitalized loan origination costs, of $11.6 million remained consistent with the fourth quarter of 2020 level of $11.6 million.

Financial Position – March 31, 2021 compared to December 31, 2020

• Total assets increased by $41.8 million, or 2%, to $1.95 billion primarily as the result of loan growth during the quarter, which was funded by the growth in our deposit portfolio.
• Total gross loans increased by $101.2 million, or 7%, to $1.47 billion. Excluding the impact of new PPP loans funded and certain PPP loans forgiven by the SBA, total gross loans increased during the first quarter by $54.2 million, or 5%, to $1.12 billion.
• Total deposits increased by $97.5 million, or 6%, to $1.63 billion.
• Total borrowings decreased by $54.2 million, or 29%, to $134.8 million due to repayment of borrowings under the Federal Reserve Paycheck Protection Program Liquidity Facility (“PPPLF”).
• Capital ratios, including the impact of PPP loan activity, remain healthy with a tier-one leverage ratio of 7.46%, tier I capital ratio of 9.47% and total risk-based capital ratio of 12.34%.
  

Business Impact of COVID-19:

In response to the continued evolving COVID-19 pandemic, the Company has focused first on the well-being of its people, customers and communities. Preventative health measures were put in place including elimination of business related travel requirements, mandatory work from home for all employees able to do so, social distancing precautions for all employees in the office and customers visiting branches, and preventative cleaning at offices and branches.

The Company has also focused on business continuity measures including monitoring potential business interruptions, making improvements to our remote working technology, and conducting regular discussions with our technology vendors to ensure full functionality throughout this event.

The Company has taken measures to support customers affected by the pandemic and to maintain strong asset quality, including:

• Implementing a broad-based risk management strategy to manage credit segments on a real-time basis;
• Monitoring portfolio risk and related mitigation strategies by segments;
• Helping business clients receive PPP and other loan products under the CARES Act:
  • Following the launch of PPP in April 2020, we processed 100% of the approximately 730 applications received and all of the applications we submitted to the SBA received approval, resulting in $362.0 million in loan fundings. At March 31, 2021, approximately $130.2 million of these balances have been granted forgiveness by the SBA.  
  • Following the re-launch of the PPP program in January 2021, we processed 100% of the approximately 370 applications received and all of the applications we submitted to the SBA received approval, resulting in $117.3 million in additional loan fundings.
• Offering flexible repayment options to current clients and a streamlined loan modification process, when appropriate. Beginning in March 2020, we launched a proactive deferral program that resulted in modification of 383 loans with an aggregate balance of approximately $323.9 million. At March 31, 2021, four loans totaling $9.5 million were on a deferred status or have had a structure modification under the CARES Act guidelines.

Net Interest Income and Margin:

Net interest income for the quarter ended March 31, 2021 was $13.3 million, an increase of $573,000 or 4%, over $12.8 million for the three months ended December 31, 2020, and an increase of $3.2 million, or 31%, over $10.2 million for the quarter ended March 31, 2020. The increase in net interest income compared to the fourth quarter of 2020 was primarily attributable to the growth of the loan portfolio combined with a reduction in the average cost of deposits. Compared to the first quarter of 2020, the increase in net interest income resulted from growth in earning assets and amortization of fees received on PPP loans offset, in part, by the decline in short-term interest rates and higher liquidity.

The Company’s net interest margin for the quarter was 2.94%, compared to 2.66% for the fourth quarter of 2020 and 3.80% for the same period in 2020. The increase in margin compared to the prior quarter was primarily due to the growth of the loan portfolio combined with a reduction in the average cost of deposits. The decrease in margin from the same period last year was primarily the result of a decrease in short-term interest rates, partially offset by fees recognized on PPP loans.

Non-Interest Income:

The Company’s non-interest income for the quarters ended March 31, 2021, December 31, 2020, and March 31, 2020 was $921,000, $916,000 and $1.3 million, respectively. The decrease in noninterest income from the first quarter of 2020 was primarily due to a decrease in service charges and loan related fees.

Net interest income and non-interest income comprised total revenue of $14.3 million, $13.7 million, and $11.5 million for the quarters ended March 31, 2021, December 31, 2020, and March 31, 2020, respectively.

Non-Interest Expense:

The Company’s non-interest expense for the quarters ended March 31, 2021, December 31, 2020, and March 31, 2020 was $10.1 million, $10.4 million, and $10.4 million, respectively. The decrease in non-interest expense was primarily due to capitalized loan origination costs related to growth in the loan portfolio.

The Company’s efficiency ratio, the ratio of non-interest expense to revenues, was 70.70%, 76.15%, and 90.72% for the quarters ending March 31, 2021, December 31, 2020, and March 31, 2020, respectively.

Balance Sheet:

Total assets of $1.95 billion as of March 31, 2021, represented an increase of $41.8 million, or 2%, compared to $1.91 billion at December 31, 2020 and an increase of $740.1 million, or 61% compared to $1.21 billion at March 31, 2020.

Total loans increased by $101.2 million, or 7% to $1.47 billion at March 31, 2021, from $1.37 billion at December 31, 2021 and $501.4 million, or 52% compared to $968.9 million at March 31, 2020. Loan growth in the first quarter of 2021 compared to the fourth quarter of 2020 was centered in commercial loans and in commercial real estate loans of $24.5 million and $22.8 million, respectively, and an increase in SBA loans of $46.7 million due to additional net fundings of PPP loans.

Year-over-year loan growth was primarily due to the origination of $492.2 million in PPP loans as well as increases in commercial loans and commercial real estate of $22.7 million and $76.8 million, respectively. In addition, the Company purchased two portfolios of residential solar loans totaling $47.4 million. These increases were partially offset by approximately $130.2 million of PPP loans that were forgiven by the SBA.

Total deposits increased by $97.5 million, or 6% to $1.63 billion at March 31, 2021, from $1.53 billion at December 31, 2020 and $600.9 million, or 58% over $1.03 billion at March 31, 2020. The increase in total deposits from the end of the fourth quarter of 2020 was primarily due to growth of non-interest bearing demand deposits of $69.5 million and money market and savings deposits of $46.9 million.

Compared to the same period last year, deposit growth was primarily concentrated in noninterest-bearing demand and money market deposits as the result of funding PPP loans and organic growth. Non-interest bearing deposits, primarily commercial business operating accounts, represented 45.6% of total deposits at March 31, 2021, compared to 43.9% at December 31, 2020 and 39.2% at March 31, 2020.

Asset Quality:

The provision for credit losses decreased to $300,000 for the first quarter of 2021, compared to $700,000 for the fourth quarter of 2020 and $400,000 for the first quarter of 2020. Net loan recoveries in the first quarter of 2021 were $166,000 or 0.01% of gross loans, compared to net recoveries of $26,000, or 0.00%, in the fourth quarter of 2020 and net recoveries of $90,000, or 0.01%, in the first quarter of 2020.

Non-performing assets (“NPAs”) to total assets of 0.01% at March 31, 2021 and December 31, 2020, compared to 0.22% at March 31, 2020, with non-performing loans of $234,000, $234,000 and $2.7 million, respectively, on those dates.

The allowance for loan losses increased by $466,000, or 3% to $14.6 million, or 0.99% of total loans at March 31, 2021, compared to $14.1 million, or 1.03% at December 31, 2020 and $11.6 million, or 1.19% of total loans at March 31, 2020. The decrease in the allowance as a percentage of total loans at March 31, 2021 compared to December 31, 2020 and March 31, 2020 reflects the impact of PPP loans, which are guaranteed by the SBA.

Capital Adequacy:

At March 31, 2021, shareholders’ equity totaled $139.2 million compared to $136.4 million at December 31, 2020 and $131.2 million one year ago. As a result, the Company’s total risk-based capital ratio, tier one capital ratio and leverage ratio of 12.34%, 9.47%, and 7.46%, respectively, were all substantially above the regulatory standards for “well-capitalized” institutions of 10.00%, 8.00% and 5.00% respectively.

“We have seen meaningful progress on our goal of improving the operating leverage from last year’s balance sheet growth. Compared to the first quarter of last year our efforts increased quarterly revenue by $2.8 million while keeping noninterest expenses flat through an extremely challenging operating environment,” said Thomas A. Sa, Senior Executive Vice President, Chief Financial Officer and Chief Operating Officer of California BanCorp. “We also continue to see healthy asset quality and a low level of credit losses, as our borrowers continue to perform well despite the impact of the ongoing pandemic.”

About California BanCorp:

California BanCorp, the parent company for California Bank of Commerce, offers a broad range of commercial banking services to closely held businesses and professionals located throughout Northern California. The Company’s common stock trades on the Nasdaq Global Select marketplace under the symbol CALB. For more information on California BanCorp, call us at (510) 457-3615, or visit us at www.californiabankofcommerce.com.

Contacts:

Steven E. Shelton, (510) 457-3751                        
President and Chief Executive Officer                        
seshelton@bankcbc.com

Thomas A. Sa, (510) 457-3775
Senior Executive Vice President
Chief Financial Officer and Chief Operating Officer
tsa@bankcbc.com

Use of Non-GAAP Financial Information:

This press release contains both financial measures based on GAAP and non-GAAP. Non-GAAP financial measures are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Forward-Looking Information:

Statements in this news release regarding expectations and beliefs about future financial performance and financial condition, as well as trends in the Company’s business and markets are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "outlook," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." The forward-looking statements in this news release are based on current information and on assumptions that the Company makes about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond the Company’s control. As a result of those risks and uncertainties, the Company’s actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause the Company to make changes to future plans. Those risks and uncertainties include, but are not limited to, the risk of incurring loan losses, which is an inherent risk of the banking business; the risk that the Company will not be able to continue its internal growth rate; the risk that the United States economy will experience slowed growth or recession or will be adversely affected by domestic or international economic conditions and risks associated with the Federal Reserve Board taking actions with respect to interest rates, any of which could adversely affect, among other things, the values of real estate collateral supporting many of the Company’s loans, interest income and interest rate margins and, therefore, the Company’s future operating results; risks associated with changes in income tax laws and regulations; and risks associated with seeking new client relationships and maintaining existing client relationships. Readers of this news release are encouraged to review the additional information regarding these and other risks and uncertainties to which our business is subject that are contained in our Annual Report on Form 10-K for the year ended December 31, 2020 which is on file with the Securities and Exchange Commission (the “SEC”). Additional information will be set forth in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, which we expect to file with the SEC during the second quarter of 2021, and readers of this release are urged to review the additional information that will be contained in that report.

The COVID-19 pandemic has created economic and financial disruptions that have adversely affected, and may continue to adversely affect, our business, operations, financial performance and prospects. Even after the COVID-19 pandemic subsides, it is possible that the U.S. and other major economies experience or continue to experience a prolonged recession, which could materially and adversely affect our business, operations, financial performance and prospects. Statements about the effects of the COVID-19 pandemic on our business, operations, financial performance and prospects may constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties and us.

Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today's date, or to make predictions based solely on historical financial performance. The Company disclaims any obligation to update forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise, except as may be required by.

CALIFORNIA BANCORP AND SUBSIDIARY
SELECTED FINANCIAL INFORMATION (UNAUDITED) - PROFITABILITY
(Dollars in Thousands, Except Per Share Data)
										Change												Change
QUARTERLY HIGHLIGHTS:		Q1 2021				Q4 2020				$				%				Q1 2020				$				%
Interest income		$	15,032			$	14,748			$	284			2	%			$	12,303			$	2,729			22	%
Interest expense			1,696				1,985				(289	)		-15	%				2,121				(425	)		-20	%
Net interest income			13,336				12,763				573			4	%				10,182				3,154			31	%
Provision for loan losses			300				700				(400	)		-57	%				400				(100	)		-25	%
Net interest income after provision
provision for loan losses			13,036				12,063				973			8	%				9,782				3,254			33	%
Non-interest income			921				916				5			1	%				1,290				(369	)		-29	%
Non-interest expense			10,080				10,416				(336	)		-3	%				10,407				(327	)		-3	%
Income before income taxes			3,877				2,563				1,314			51	%				665				3,212			483	%
Income tax expense			1,068				778				290			37	%				192				876			456	%
Net income		$	2,809			$	1,785			$	1,024			57	%			$	473			$	2,336			494	%
Diluted earnings per share		$	0.34			$	0.22			$	0.12			55	%			$	0.06			$	0.28			467	%
Net interest margin			2.94	%			2.66	%		+28 Basis Points									3.80	%		-86 Basis Points
Efficiency ratio			70.70	%			76.15	%		-545 Basis Points									90.72	%		-2,002 Basis Points

CALIFORNIA BANCORP AND SUBSIDIARY
SELECTED FINANCIAL INFORMATION (UNAUDITED) - FINANCIAL POSITION
(Dollars in Thousands, Except Per Share Data)
										Change												Change
PERIOD-END HIGHLIGHTS:		Q1 2021				Q4 2020				$				%				Q1 2020				$			%
Total assets		$	1,947,588			$	1,905,779			$	41,809			2	%			$	1,207,482			$	740,106		61	%
Gross loans			1,470,313				1,369,070				101,243			7	%				968,945				501,368		52	%
Deposits			1,629,715				1,532,206				97,509			6	%				1,028,861				600,854		58	%
Tangible equity			131,634				128,856				2,778			2	%				123,608				8,026		6	%
Tangible book value per share		$	16.07			$	15.77			$	0.30			2	%			$	15.22			$	0.85		6	%
Tangible equity / total assets			6.76	%			6.76	%		N/A									10.24	%		-348 Basis Points
Gross loans / total deposits			90.22	%			89.35	%		+87 Basis Points									94.18	%		-396 Basis Points
Noninterest-bearing deposits /
total deposits			45.56	%			43.93	%		+163 Basis Points									39.19	%		+637 Basis Points
QUATERLY AVERAGE										Change												Change
HIGHLIGHTS:		Q1 2021				Q4 2020				$				%				Q1 2020				$			%
Total assets		$	1,922,739			$	1,993,661			$	(70,922	)		-4	%			$	1,167,803			$	754,936		65	%
Total earning assets			1,839,437				1,910,656				(71,219	)		-4	%				1,077,431				762,006		71	%
Gross loans			1,415,506				1,375,664				39,842			3	%				952,303				463,203		49	%
Deposits			1,569,170				1,516,441				52,729			3	%				999,984				569,186		57	%
Tangible equity			129,865				127,981				1,884			1	%				123,752				6,113		5	%
Tangible equity / total assets			6.75	%			6.42	%		+33 Basis Points									10.60	%		-385 Basis Points
Gross loans / total deposits			90.21	%			90.72	%		-51 Basis Points									95.23	%		-502 Basis Points
Noninterest-bearing deposits /
total deposits			43.97	%			44.68	%		-71 Basis Points									37.50	%		+647 Basis Points

	CALIFORNIA BANCORP AND SUBSIDIARY
	SELECTED INTERIM FINANCIAL INFORMATION (UNAUDITED) - ASSET QUALITY
	(Dollars in Thousands)
	ALLOWANCE FOR LOAN LOSSES:		03/31/21				12/31/20				09/30/20				06/30/20				03/31/20
	Balance, beginning of period		$	14,111			$	13,385			$	12,524			$	11,565			$	11,075
	Provision for loan losses, quarterly			300				700				850				2,930				400
	Charge-offs, quarterly			-				-				-				(1,976	)			-
	Recoveries, quarterly			166				26				11				5				90
	Balance, end of period		$	14,577			$	14,111			$	13,385			$	12,524			$	11,565
	NONPERFORMING ASSETS:		03/31/21				12/31/20				09/30/20				06/30/20				03/31/20
	Loans accounted for on a non-accrual basis		$	234			$	234			$	580			$	1,243			$	2,650
	Loans with principal or interest contractually
	past due 90 days or more and still accruing
	interest			-				-				-				-				-
	Nonperforming loans		$	234			$	234			$	580			$	1,243			$	2,650
	Other real estate owned			-				-				-				-				-
	Nonperforming assets		$	234			$	234			$	580			$	1,243			$	2,650
	Loans restructured and in compliance with
	modified terms			-				-				-				-				624
	Nonperforming assets and restructured loans		$	234			$	234			$	580			$	1,243			$	3,274
	Nonperforming loans by asset type:
	Commercial			-				-				346				1,008				2,306
	Real estate other			-				-				-				-				-
	Real estate construction and land			-				-				-				-				-
	SBA			234				234				234				235				344
	Other			-				-				-				-				-
	Nonperforming loans		$	234			$	234			$	580			$	1,243			$	2,650
	ASSET QUALITY:		03/31/21				12/31/20				09/30/20				06/30/20				03/31/20
	Allowance for loan losses / gross loans			0.99	%			1.03	%			0.99	%			0.96	%			1.19	%
	Allowance for loan losses / nonperforming loans			6229.49	%			6030.34	%			2307.76	%			1007.56	%			436.42	%
	Nonperforming assets / total assets			0.01	%			0.01	%			0.03	%			0.07	%			0.22	%
	Nonperforming loans / gross loans			0.02	%			0.02	%			0.04	%			0.10	%			0.27	%
	Net quarterly charge-offs / gross loans			-0.01	%			-0.00	%			-0.00	%			0.15	%			-0.01	%

	CALIFORNIA BANCORP AND SUBSIDIARY
	INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
	(Dollars in Thousands, Except Per Share Data)
				Three months ended
				03/31/21				12/31/20				03/31/20
	INTEREST INCOME
	Loans			$	14,584			$	14,305			$	11,783
	Federal funds sold				88				131				329
	Investment securities				360				312				191
	Total interest income				15,032				14,748				12,303
	INTEREST EXPENSE
	Deposits				1,191				1,359				1,994
	Other				505				626				127
	Total interest expense				1,696				1,985				2,121
	Net interest income				13,336				12,763				10,182
	Provision for loan losses				300				700				400
	Net interest income after provision
	for loan losses				13,036				12,063				9,782
	NON-INTEREST INCOME
	Service charges and other fees				641				662				970
	Other non-interest income				280				254				320
	Total non-interest income				921				916				1,290
	NON-INTEREST EXPENSE
	Salaries and benefits				6,367				7,072				6,477
	Premises and equipment				1,197				1,125				1,139
	Other				2,516				2,219				2,791
	Total non-interest expense				10,080				10,416				10,407
	Income before income taxes				3,877				2,563				665
	Income taxes				1,068				778				192
	NET INCOME			$	2,809			$	1,785			$	473
	EARNINGS PER SHARE
	Basic earnings per share			$	0.34			$	0.22			$	0.06
	Diluted earnings per share			$	0.34			$	0.22			$	0.06
	Average common shares outstanding				8,179,667				8,152,052				8,103,248
	Average common and equivalent
	shares outstanding				8,242,467				8,203,931				8,169,898
	PERFORMANCE MEASURES
	Return on average assets				0.59	%			0.36	%			0.16	%
	Return on average equity				8.29	%			5.25	%			1.45	%
	Return on average tangible equity				8.77	%			5.55	%			1.54	%
	Efficiency ratio				70.70	%			76.15	%			90.72	%

	CALIFORNIA BANCORP AND SUBSIDIARY
	INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
	(Dollars in Thousands)
			03/31/21				12/31/20				09/30/20				06/30/20				03/31/20
	ASSETS
	Cash and due from banks		$	18,475			$	22,485			$	23,339			$	22,246			$	22,792
	Federal funds sold			342,305				396,032				480,555				485,823				117,818
	Investment securities			58,105				55,093				50,906				39,723				34,344
	Loans:
	Commercial			439,044				414,548				379,400				365,881				416,308
	Real estate other			573,520				550,690				539,541				508,916				496,765
	Real estate construction and land			45,550				37,193				36,596				49,524				41,697
	SBA			364,273				317,564				373,921				373,429				12,797
	Other			47,926				49,075				25,706				1,731				1,378
	Loans, gross			1,470,313				1,369,070				1,355,164				1,299,481				968,945
	Unearned fee income			(1,569	)			523				(1,054	)			(1,569	)			2,902
	Allowance for loan losses			(14,577	)			(14,111	)			(13,385	)			(12,524	)			(11,565	)
	Loans, net			1,454,167				1,355,482				1,340,725				1,285,388				960,282
	Premises and equipment, net			5,452				5,778				5,933				4,709				3,427
	Bank owned life insurance			23,920				23,718				23,577				23,434				23,284
	Goodwill and core deposit intangible			7,544				7,554				7,564				7,575				7,585
	Accrued interest receivable and other assets			37,620				39,637				40,152				41,528				37,950
	Total assets		$	1,947,588			$	1,905,779			$	1,972,751			$	1,910,426			$	1,207,482
	LIABILITIES
	Deposits:
	Demand noninterest-bearing		$	742,574			$	673,100			$	633,726			$	643,354			$	403,248
	Demand interest-bearing			33,022				34,869				32,680				28,769				21,083
	Money market and savings			670,517				623,603				582,953				549,084				459,712
	Time			183,602				200,634				187,873				164,495				144,818
	Total deposits			1,629,715				1,532,206				1,437,232				1,385,702				1,028,861
	Junior subordinated debt securities			24,999				24,994				24,990				4,986				4,981
	Other borrowings			134,819				189,043				352,703				364,703				22,000
	Accrued interest payable and other liabilities			18,877				23,126				23,231				21,370				20,447
	Total liabilities			1,808,410				1,769,369				1,838,156				1,776,761				1,076,289
	SHAREHOLDERS' EQUITY
	Common stock			108,431				107,948				107,776				107,241				106,790
	Retained earnings			30,629				27,821				26,036				25,541				23,991
	Accumulated other comprehensive (loss)			118				641				783				883				412
	Total shareholders' equity			139,178				136,410				134,595				133,665				131,193
	Total liabilities and shareholders' equity		$	1,947,588			$	1,905,779			$	1,972,751			$	1,910,426			$	1,207,482
				-				-				-				-				-
	CAPITAL ADEQUACY
	Tier I leverage ratio			7.46	%			7.49	%			7.84	%			8.13	%			10.66	%
	Tier I risk-based capital ratio			9.47	%			10.11	%			10.57	%			11.27	%			10.62	%
	Total risk-based capital ratio			12.34	%			13.22	%			13.80	%			12.87	%			12.07	%
	Total equity/ total assets			7.15	%			7.16	%			6.82	%			7.00	%			10.87	%
	Book value per share		$	16.99			$	16.69			$	16.52			$	16.43			$	16.15
	Common shares outstanding			8,189,598				8,171,734				8,149,678				8,133,457				8,121,848

	CALIFORNIA BANCORP AND SUBSIDIARY
	INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
	(Dollars in Thousands)
			Three months ended March 31,													Three months ended December 31,
				2021										2020
						Yields			Interest							Yields			Interest
			Average			or			Income/				Average			or			Income/
			Balance			Rates			Expense				Balance			Rates			Expense
	ASSETS
	Interest earning assets:
	Loans (1)		$	1,415,506		4.18	%		$	14,584			$	1,375,664		4.14	%		$	14,305
	Federal funds sold			369,223		0.10	%			88				480,790		0.11	%			131
	Investment securities			54,708		2.67	%			360				54,202		2.29	%			312
	Total interest earning assets			1,839,437		3.31	%			15,032				1,910,656		3.07	%			14,748
	Noninterest-earning assets:
	Cash and due from banks			23,033										20,616
	All other assets (2)			60,269										62,389
	TOTAL		$	1,922,739									$	1,993,661
	LIABILITIES AND
	SHAREHOLDERS' EQUITY
	Interest-bearing liabilities:
	Deposits:
	Demand		$	34,512		0.13	%		$	11			$	33,674		0.13	%		$	11
	Money market and savings			644,740		0.61	%			972				604,578		0.74	%			1,118
	Time			199,953		0.42	%			208				200,606		0.46	%			230
	Other			192,803		1.06	%			505				318,570		0.78	%			626
	Total interest-bearing liabilities			1,072,008		0.64	%			1,696				1,157,428		0.68	%			1,985
	Noninterest-bearing liabilities:
	Demand deposits			689,965										677,583
	Accrued expenses and
	other liabilities			23,351										23,466
	Shareholders' equity			137,415										135,184
	TOTAL		$	1,922,739									$	1,993,661
	Net interest income and margin (3)					2.94	%		$	13,336						2.66	%		$	12,763
	(1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of
	yields. Interest income on loans includes amortization of deferred loan fees of $1.2 million and $1.0 million, respectively.
	(2) Other noninterest-earning assets includes the allowance for loan losses of $14.2 million and $13.4 million, respectively.
	(3) Net interest margin is net interest income divided by total interest-earning assets.

	CALIFORNIA BANCORP AND SUBSIDIARY
	INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
	(Dollars in Thousands)
		Three months ended March 31,
				2021									2020
						Yields			Interest						Yields			Interest
			Average			or			Income/			Average			or			Income/
			Balance			Rates			Expense			Balance			Rates			Expense
	ASSETS
	Interest earning assets:
	Loans (1)		$	1,415,506		4.18	%		$	14,584		$	952,303		4.98	%		$	11,783
	Federal funds sold			369,223		0.10	%			88			96,834		1.37	%			329
	Investment securities			54,708		2.67	%			360			28,294		2.72	%			191
	Total interest earning assets			1,839,437		3.31	%			15,032			1,077,431		4.59	%			12,303
	Noninterest-earning assets:
	Cash and due from banks			23,033									21,729
	All other assets (2)			60,269									68,643
	TOTAL		$	1,922,739								$	1,167,803
	LIABILITIES AND
	SHAREHOLDERS' EQUITY
	Interest-bearing liabilities:
	Deposits:
	Demand		$	34,512		0.13	%		$	11		$	23,747		0.12	%		$	7
	Money market and savings			644,740		0.61	%			972			476,493		1.19	%			1,412
	Time			199,953		0.42	%			208			124,705		1.85	%			575
	Other			192,803		1.06	%			505			15,070		3.39	%			127
	Total interest-bearing liabilities			1,072,008		0.64	%			1,696			640,015		1.33	%			2,121
	Noninterest-bearing liabilities:
	Demand deposits			689,965									375,039
	Accrued expenses and
	other liabilities			23,351									21,406
	Shareholders' equity			137,415									131,343
	TOTAL		$	1,922,739								$	1,167,803
	Net interest income and margin (3)					2.94	%		$	13,336					3.80	%		$	10,182
	(1) Nonperforming loans are included in average loan balances. No adjustment has been made for these loans in the calculation of
	yields. Interest income on loans includes amortization of deferred loan fees (costs) of $1.2 million and $(294,000), respectively.
	(2) Other noninterest-earning assets includes the allowance for loan losses of 14.2 million and $11.1 million, respectively.
	(3) Net interest margin is net interest income divided by total interest-earning assets.

	CALIFORNIA BANCORP AND SUBSIDIARY
	INTERIM CONSOLIDATED NON GAAP DATA (UNAUDITED)
	(Dollars in Thousands)
	REVENUE:		Q1 2021				Q4 2020			Q3 2020			Q2 2020			Q1 2020
	Net interest income		$	13,336			$	12,763		$	11,188		$	10,785		$	10,182
	Non-interest income			921				916			1,028			777			1,290
	Total revenue		$	14,257			$	13,679		$	12,216		$	11,562		$	11,472
	PPP RELATED DEFERRED FEES AND COSTS:												Amortization			Deferred
			Deferred Balance at Origination										of Deferred			Balance
			2020 Program				2021 Program			Total			Balance			Remaining
	PPP fees		$	9,086			$	3,881		$	12,967		$	6,518		$	6,449
	PPP capitalized loan origination costs			2,451				536			2,987			1,679		$	1,308
	Net PPP fees		$	6,635			$	3,345		$	9,980		$	4,839		$	5,141
	IMPACT OF PPP ACTIVITY REFLECTED IN		Amortization of Deferred Balance
	NET INTEREST INCOME:		Q1 2021				Q4 2020			Q3 2020			Q2 2020			Q1 2020
	PPP fees		$	2,222			$	2,083		$	1,114		$	1,099		$	-
	PPP capitalized loan origination costs			633				527			266			253			-
	Net PPP fees		$	1,589			$	1,556		$	848		$	846		$	-
	NON-INTEREST EXPENSE:		Q1 2021				Q4 2020			Q3 2020			Q2 2020			Q1 2020
	Total non-interest expense		$	10,080			$	10,416		$	10,545		$	6,440		$	10,407
	Total capitalized loan origination costs			1,513				1,198			986			4,797			912
	Total operating expenses, before capitalization
	of loan origination costs		$	11,593			$	11,614		$	11,531		$	11,237		$	11,319
	GROSS LOANS:		03/31/21				12/31/20			09/30/20			06/30/20			03/31/20
	Gross loans		$	1,470,313			$	1,369,070		$	1,355,164		$	1,299,481		$	968,945
	PPP loans			353,426				306,373			362,088			361,632			-
	Gross loans, excluding PPP loans		$	1,116,887			$	1,062,697		$	993,076		$	937,849		$	968,945

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