BCAL

— Company to increase its quarterly dividend by $0.02 to $0.12 per common share in the third quarter of 2026 San Diego, Calif., July 27, 2026 (GLOBE NEWSWIRE) -- California BanCorp (“us,” “we,” “our,” or the “Company”) (NASDAQ: BCAL), the holding company for California Bank of Commerce, N.A. (the “Bank”) announces its consolidated financial results for the second quarter of 2026. The Company reported net income of $14.3 million, or $0.44 per diluted share, for the second quarter of 2026, compared to $13.8 million, or $0.42 per diluted share for the first quarter of 2026, and $14.1 million, or $0.43 per diluted share for the second quarter of 2025. “I am pleased to report a very solid second quarter by the Bank, highlighted by strong earnings of $14.3 million, meaningful loan growth of $113.7 million, and a significant improvement in credit quality, with nonperforming assets to total assets decreasing more than 50% to 0.44% from 0.97%,” said David Rainer, Chairman and CEO of the Company and Bank. “I’m also pleased to report our loan growth was well balanced, reflecting our ability to generate new banking relationships with businesses throughout our footprint. Given our strong performance and capital position, we are increasing our quarterly dividend to $0.12 beginning in the third quarter.” “We continue to focus on our organic growth strategy, with top tier bankers in each of our California markets,” said Richard Hernandez, President of the Company and Bank. “Despite strong competition in our footprint, our team successfully generated new client relationships and increased business development activity in each of our regional commercial banking offices. We remain confident in the strength of our franchise and our ability to continue growing in a disciplined and profitable manner.” Second Quarter 2026 Highlights 1 Reconciliations of non–U.S. generally accepted accounting principles (“GAAP”) measures are set forth at the end of this press release. The Company’s Board of Directors approved the regular quarterly cash dividend of $0.12 per share to holders of its common stock, an increase of $0.02 per share from the prior quarter. The dividend is expected to be paid on October 15, 2026, to shareholders of record at the close of the business day on September 21, 2026. Second Quarter Operating Results Net Income Net income for the second quarter of 2026 was $14.3 million, or $0.44 per diluted share, compared with $13.8 million, or $0.42 per diluted share in the first quarter of 2026. Pre-tax, pre-provision income (non-GAAP1) for the second quarter was $20.6 million, an increase of $1.9 million, or 9.89%, from the prior quarter. The net income and diluted earnings per share increase were largely driven by higher net interest income, and lower noninterest expense, partially offset by a higher provision for credit losses and lower noninterest income. Net Interest Income and Net Interest Margin Net interest income for the second quarter of 2026 was $43.4 million, compared with $42.1 million in the prior quarter. The increase in net interest income was primarily due to a $1.1 million increase in total interest and dividend income, coupled with a $123 thousand decrease in total interest expense in the second quarter of 2026, as compared with the prior quarter. The increase in net interest income was also impacted by one additional day in the current quarter compared with the prior quarter. During the second quarter of 2026, total interest income increased by $1.1 million. The increase was primarily driven by a $2.3 million increase in loan interest income, which included an increase of $98 thousand in accretion from the net purchase accounting discounts on acquired loans and $600 thousand in cash interest collections from the payoff of two nonaccrual loans, net of $56 thousand in reversals of interest income on loans placed on nonaccrual, coupled with an increase of $749 thousand in total debt securities income. These increases were partially offset by a decrease of $1.7 million in interest income from deposits in other financial institutions and a decrease of $225 thousand in dividend income from restricted stock investments and other bank stock. The increase in interest income was mainly due to a 25 basis point increase in the yield on average total interest-earning assets, including increases in average total loans of $23.6 million, and average total debt securities of $49.4 million, offset by decreases in average deposits in other financial institutions of $195.9 million and average Fed funds sold/resale agreements of $4.1 million. The decrease in interest expense for the second quarter of 2026 was primarily due to a $119 thousand decrease in interest expense on average total interest-bearing deposits, the result of lower average total interest-bearing deposits of $132.4 million, partially offset by an 8 basis point increase in the cost of average total interest-bearing deposits. Net interest margin for the second quarter of 2026 was 4.71%, compared with 4.47% in the prior quarter. The expansion of the net interest margin by 24 basis points was primarily driven by higher loan yields, a 6 basis point increase from the resolution of certain nonaccrual loans, and continued benefit from purchase accounting accretion. Total interest-earning assets yield increased by 25 basis points, partially offset by a 2 basis point increase in the cost of funds. The yield on total average interest-earning assets in the second quarter of 2026 was 5.97%, compared with 5.72% in the prior quarter. The yield on average total loans in the second quarter of 2026 was 6.34%, an increase of 20 basis points from 6.14% in the prior quarter. The yield on average total loans in the second quarter of 2026 included the impact of the cash interest collection from the payoff of two nonaccrual loans, net of reversals of interest income on loans placed on nonaccrual noted above, which increased the overall total loan yield by 7 basis points. There was a $479 thousand reversal of interest income in the prior quarter which negatively impacted the net interest margin by 6 basis points. Accretion income from the net purchase accounting discounts on acquired loans was $3.3 million, increasing the yield on average total loans by 44 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased interest expense by $389 thousand, the combination of which increased the net interest margin by 32 basis points in the second quarter of 2026. In the prior quarter, accretion income from the net purchase accounting discounts on acquired loans was $3.2 million, increasing the yield on average total loans by 44 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased the interest expense by $388 thousand, the combination of which increased the net interest margin by 30 basis points. Cost of funds for the second quarter of 2026 was 1.38%, an increase of 2 basis points from 1.36% in the prior quarter. The increase was primarily driven by an 8 basis point increase in the cost of average total interest-bearing deposits. The amortization expense of $389 thousand from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium contributed 5 basis points to the cost of funds. Average noninterest-bearing demand deposits increased $18.6 million to $1.22 billion and represented 36.7% of total average deposits for the second quarter of 2026, compared with $1.21 billion and 34.9%, respectively, in the prior quarter; average interest-bearing deposits decreased $132.4 million to $2.11 billion during the second quarter of 2026. The total cost of deposits in the second quarter of 2026 was 1.31%, compared with 1.29% in the prior quarter. The cost of total interest-bearing deposits increased 8 basis points, driven primarily by changes in the Company’s deposit mix and overall competition for deposits driving market deposit rates upward in the second quarter of 2026. Average total borrowings increased $51 thousand to $34.4 million in the second quarter of 2026, primarily due to a $384 thousand increase in average subordinated debt due to accretion of discounts, partially offset by a $333 thousand decrease in average Federal Home Loan Bank (“FHLB”) advances from an overnight advance. The average cost of total borrowings was 8.10% for the second quarter of 2026, down from 8.25% in the prior quarter. Provision for Credit Losses The Company recorded a provision for credit losses of $714 thousand for the second quarter of 2026, compared with a reversal of provision for credit losses of $381 thousand in the prior quarter. The provision for credit losses in the second quarter of 2026 was comprised of a $1.1 million provision for credit losses on loans held for investment, partially offset by a $336 thousand reversal of provision for credit losses for unfunded loan commitments during the second quarter of 2026. Total unfunded loan commitments decreased by $28.2 million to $896.9 million at June 30, 2026, compared to $925.1 million in unfunded loan commitments at March 31, 2026. The provision for credit losses for loans held for investment in the second quarter of 2026 was $1.1 million, an increase of $1.4 million from a reversal of provision for credit losses of $381 thousand in the prior quarter. The increase reflected updates to the reasonable and supportable economic forecasts for California, continued loan growth, changes in portfolio composition, and higher substandard accruing loan balances, partially offset by refinements to the qualitative factors and scenario weighting. The Company’s management continues to monitor macroeconomic variables including changes in interest rates, uncertainty in the current economic environment, and elevated geopolitical risks related to ongoing conflicts in the Middle East. Management believes it has appropriately provisioned for the current environment. Noninterest Income Total noninterest income was $1.6 million in the second quarter of 2026, a decrease of $586 thousand compared with $2.1 million in the first quarter of 2026. Other charges and fees decreased $534 thousand in the second quarter due primarily to a loss from equity investments of $251 thousand in the second quarter of 2026 compared to income of $181 thousand in the prior quarter. Noninterest Expense Total noninterest expense for the second quarter of 2026 was $24.3 million, a decrease of $1.2 million from total noninterest expense of $25.5 million in the prior quarter. Salaries and employee benefits decreased $1.0 million during the second quarter of 2026 to $15.5 million primarily because the previous quarter included increases in payroll taxes typically occurring in the first quarter each year, coupled with the increase in loan origination costs deferred based on increased loan origination activity. The decrease in other expenses of $424 thousand was due primarily to the decreases in loan related expenses and valuation write-downs on loans held for sale. There were no valuation write-downs on loans held for sale in the second quarter of 2026, compared with $266 thousand in the prior quarter. Efficiency ratio (non-GAAP1) for the second quarter of 2026 was 54.22%, compared with 57.69% in the prior quarter. Income Tax In the second quarter of 2026, the Company’s income tax expense was $5.5 million, compared with $5.3 million for the first quarter of 2026. The effective rate was 27.9% for the second quarter of 2026 and 27.8% for the first quarter of 2026. Balance Sheet Assets Total assets at June 30, 2026 were $4.03 billion, a decrease of $23.5 million or 0.6% from March 31, 2026. The decrease in total assets from the prior quarter was primarily related to decreases in cash and cash equivalents of $146.2 million, partially offset by a $113.7 million increase in loans, including loans held for sale and a $10.2 million increase in available-for-sale debt securities. Loans Total loans held for investment (“LHFI”) were $3.09 billion at June 30, 2026, an increase of $121.9 million, compared with March 31, 2026. During the second quarter of 2026, there were new originations of $245.6 million, including $26.5 million of short-term participation purchases in fully collateralized mortgage loans, net advances of $32.4 million, and the transfer of $7.4 million of SBA 7(a) loans from loans held for sale to loans held for investment at net amortized cost. These increases were partially offset by $163.3 million loan payoffs, including a $5.7 million discounted note sale that resulted in a $127 thousand charge-off. Total loans secured by real estate increased by $75.7 million, of which other commercial real estate loans increased $58.2 million; multifamily loans increased $13.3 million, and 1-4 family residential loans increased by $10.7 million; commercial and industrial loans increased by $45.6 million, including $26.5 million of aforementioned participation purchases in mortgage loans through approved warehouse facilities; and other consumer loans increased by $629 thousand. These increases were partially offset by a decrease in construction and land development loans of $6.5 million. The Company had $15.8 million in loans held for sale at June 30, 2026, consisting entirely of consumer solar loans, compared with $24.1 million at March 31, 2026, consisting of $7.6 million of SBA 7(a) loans and $16.5 million of consumer solar loans. During the second quarter of 2026, the Company transferred its $7.4 million SBA 7(a) loans held for sale to loans held for investment at net amortized cost. The Company did not record a valuation write-down related to its consumer solar loans in the second quarter of 2026. In the first quarter of 2026, the Company recorded a valuation allowance of $266 thousand related to these loans. Deposits Total deposits at June 30, 2026 were $3.36 billion, a decrease of $34.4 million from March 31, 2026. The decrease was primarily due to decreases in interest-bearing non-maturity deposits of $30.0 million, non-brokered time deposits of $13.9 million, partially offset by an increase in noninterest-bearing demand deposits of $9.5 million. Noninterest-bearing demand deposits at June 30, 2026, were $1.26 billion, or 37.4% of total deposits, compared with $1.25 billion, or 36.8% of total deposits at March 31, 2026. At June 30, 2026, total interest-bearing deposits were $2.10 billion, compared with $2.15 billion at March 31, 2026. At June 30, 2026, the Company did not have any brokered time deposits. The Company offers the Insured Cash Sweep product and Certificate of Deposit Account Registry Service, each of which provides reciprocal deposit placement services to fully qualified large customer deposits for FDIC insurance among other participating banks. Total reciprocal deposits were $705.2 million, or 21.0% of total deposits at June 30, 2026, compared with $723.7 million, or 21.3% of total deposits at March 31, 2026. Federal Home Loan Bank (“FHLB”) and Liquidity At June 30, 2026 and March 31, 2026, the Company had no FHLB or Federal Reserve Discount Window borrowings. At June 30, 2026, the Company had available borrowing capacity from an FHLB secured line of credit of approximately $719.8 million and available borrowing capacity from the Federal Reserve Discount Window of approximately $329.7 million. The Company also had available borrowing capacity from four unsecured credit lines from correspondent banks of approximately $90.5 million at June 30, 2026, with no outstanding borrowings. Total available borrowing capacity was $1.14 billion at June 30, 2026. Additionally, the Company had unpledged liquid securities at fair value of approximately $211.0 million and cash and cash equivalents of $265.0 million at June 30, 2026. The Company intends to redeem all $35.0 million of its 3.50% fixed-to-floating rate subordinated debt due September 1, 2031, at par value during the third quarter of 2026. Starting in September 2026, the interest rate on that subordinated debt is scheduled to transition from a fixed rate to a quarterly variable rate equal to the then current 90-day SOFR plus 2.86%, through the contractual maturity date of September 1, 2031. Asset Quality Total non-performing assets were $17.5 million, or 0.44% of total assets at June 30, 2026, a decrease of $21.7 million, or 55.3%, from $39.2 million, or 0.97% of total assets, at March 31, 2026. Total non-performing loans were $8.9 million, or 0.29% of total loans held for investment at June 30, 2026, compared with $30.6 million, or 1.03% of total loans held for investment at March 31, 2026. Total nonperforming loans decreased $21.7 million, or 70.9%, during the second quarter of 2026 primarily reflecting the resolution of three nonperforming commercial real estate loans that had been downgraded in the prior quarter, including the full repayment of two loans with a combined net carrying value of $17.8 million and the discounted note sale of a $5.7 million loan, which resulted in a $127 thousand charge-off. In addition, existing nonperforming loans had net paydowns of $758 thousand during the quarter. These decreases were partially offset by the downgrade of a 1-4 family residential investment loan with a net carrying value of $2.7 million at June 30, 2026. This loan is classified as an individually evaluated, collateral-dependent loan and no allowance was recorded at June 30, 2026, as a full repayment is anticipated. Special mention loans decreased by $5.0 million during the second quarter of 2026 to $48.6 million at June 30, 2026. The decrease in the special mention loans was due mostly to $7.7 million of loans downgraded to substandard, coupled with $3.7 million in payoffs and $70 thousand in upgrades to pass rating, partially offset by $5.1 million of loans downgraded from pass rating, and $1.3 million in net advances, Substandard loans decreased by $8.2 million during the second quarter of 2026 to $64.2 million at June 30, 2026. The decrease in the substandard loans was due primarily to the aforementioned payoffs and discounted note sales of three nonperforming commercial real estate loans totaling $23.6 million, coupled with $6.0 million of other payoffs and $1.2 million of net paydowns, partially offset by $14.9 million of downgrades from pass risk rating to substandard accruing and $7.7 million of downgrades from special mention to substandard accruing. The Company had no LHFI that were over 90 days past due and still accruing interest at June 30, 2026 and March 31, 2026, respectively. Loan delinquencies (30-89 days past due, excluding nonaccrual loans) totaled $4.9 million at June 30, 2026, compared with $12.8 million in such loan delinquencies at March 31, 2026. The decrease was primarily due to $10.0 million of loans brought to current, and $2.7 million of 1-4 family residential loan downgraded to nonaccrual, partially offset by $4.5 million of loans that became delinquent during the second quarter of 2026. The allowance for credit losses, which is comprised of the ALL and reserve for unfunded loan commitments, totaled $36.6 million at June 30, 2026, compared with $36.1 million at March 31, 2026. The $522 thousand increase in the allowance for credit losses included a $1.1 million provision for credit losses for the loan portfolio, net charge-offs of $192 thousand, and a $336 thousand reversal of provision for credit losses for unfunded loan commitments for the quarter ended June 30, 2026. The ALL was $34.9 million, or 1.13% of total loans held for investment at June 30, 2026, compared with $34.0 million, or 1.14% at March 31, 2026. Capital Tangible book value per common share (non-GAAP1) at June 30, 2026 was $14.29, compared with $13.97 at March 31, 2026. In the second quarter of 2026, tangible book value was primarily impacted by net income of $14.3 million for the second quarter, and stock-based compensation activity. This was partially offset by an increase in net of tax unrealized losses on available-for-sale debt securities, the Company’s stock repurchase program activity, and cash dividends, which reduced the tangible book value per common share by $0.05, $0.06 and $0.10, respectively. Other comprehensive losses related to net of tax unrealized losses on available-for-sale debt securities increased by $1.5 million to $5.3 million at June 30, 2026, from $3.8 million at March 31, 2026. The increase in the net of tax unrealized losses on available-for-sale debt securities was attributable to non-credit related factors, including a decrease in bond prices at the long end of the yield curve and the general interest rate environment, and growth in the available-for-sale debt securities. Tangible common equity (non-GAAP1) as a percentage of total tangible assets (non-GAAP1) at June 30, 2026, increased to 11.77% from 11.46% in the prior quarter, and net of tax unrealized losses on available-for-sale debt securities as a percentage of tangible common equity (non-GAAP1) at June 30, 2026 increased to 1.2% from 0.8% in the prior quarter. The Company’s preliminary capital ratios exceed the minimums required to be “well-capitalized” at June 30, 2026. Stock Repurchase Program During the second quarter of 2026, the Company repurchased 102,594 shares of its common stock at an average price of $19.46 and a total cost of $2.0 million under the stock repurchase program, compared to 409,915 shares of common stock at an average price of $18.08 and a total cost of $7.4 million in the first quarter of 2026. The remaining maximum number of shares authorized to be repurchased under this program was 875,563 shares at June 30, 2026. ABOUT CALIFORNIA BANCORP California BanCorp (NASDAQ: BCAL) is a registered bank holding company headquartered in San Diego, California. California Bank of Commerce, N.A., a national banking association chartered under the laws of the United States (the “Bank”) and regulated by the Office of the Comptroller of the Currency, is a wholly owned subsidiary of California BanCorp. Established in 2001 and headquartered in San Diego, California, the Bank offers a range of financial products and services to individuals, professionals, and small to medium-sized businesses through its 14 branch offices including 11 commercial banking offices serving California. The Bank’s solutions-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with its clients. Additional information is available at www.californiabankofcommerce.com. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS In addition to historical information, this release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and other matters that are not historical facts. Examples of forward-looking statements include, among others, statements regarding expectations, plans or objectives for future operations, products or services, loan recoveries, projections, and expectations regarding the adequacy of reserves for credit losses, as well as forecasts relating to financial and operating results or other measures of economic performance. Forward-looking statements reflect management’s current view about future events and involve risks and uncertainties that may cause actual results to differ from those expressed in the forward-looking statement or historical results. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and often include the words or phrases such as “aim,” “can,” “may,” “could,” “predict,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “hope,” “intend,” “plan,” “potential,” “project,” “will likely result,” “continue,” “seek,” “shall,” “possible,” “projection,” “optimistic,” and “outlook,” and variations of these words and similar expressions. Factors that could cause or contribute to results differing from those in or implied in the forward-looking statements include but are not limited to the impact of bank failures or other adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks; changes in real estate markets and valuations; the impact on financial markets from geopolitical conflicts; inflation, interest rate, market and monetary fluctuations and general economic conditions, either nationally or locally in the areas in which the Company conducts business; increases in competitive pressures among financial institutions and businesses offering similar products and services; general credit risks related to lending, including changes in the value of real estate or other collateral, the financial condition of borrowers, the effectiveness of our underwriting practices and the risk of fraud; higher than anticipated defaults in the Company’s loan portfolio; changes in management’s estimate of the adequacy of the allowance for credit losses or the factors the Company uses to determine the allowance for credit losses; changes in demand for loans and other products and services offered by the Company; the possibility that the Company may reduce or discontinue the payment of dividends on its common stock; the possibility that the Company may discontinue, reduce or otherwise limit the level of repurchases of its common stock that it may make from time to time pursuant to its stock repurchase program; the costs and outcomes of litigation; legislative or regulatory changes or changes in accounting principles, policies or guidelines; and other risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”) and other documents the Company may file with the SEC from time to time. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and other documents the Company files with the SEC from time to time. Any forward-looking statement made in this release is based only on information currently available to management and speaks only as of the date on which it is made. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements or to conform such forward-looking statements to actual results or to changes in its opinions or expectations, except as required by law. California BanCorp and SubsidiaryFinancial Highlights (Unaudited) (1) Non-GAAP measure. See – GAAP to Non-GAAP reconciliation. (1) Included in “Accrued interest and other liabilities” on the consolidated balance sheets. California BanCorp and SubsidiaryBalance Sheets (Unaudited) California BanCorp and SubsidiaryIncome Statements - Quarterly and Year-to-Date (Unaudited) (1) Included (reversal of) provision for credit losses on unfunded loan commitments of $(336) thousand, zero and $29 thousand for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively; and $(336) thousand and $(589) thousand for the six months ended June 30, 2026 and June 30, 2025, respectively. California BanCorp and SubsidiaryAverage Balance Sheets and Yield Analysis(Unaudited) (1) Tax-exempt debt securities yields are presented on a tax equivalent basis using a 21% tax rate.(2) Average noninterest-bearing deposits represent 36.70%, 34.95% and 36.21% of average total deposits for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively. California BanCorp and SubsidiaryAverage Balance Sheets and Yield Analysis(Unaudited) (1) Tax-exempt debt securities yields are presented on a tax equivalent basis using a 21% tax rate.(2) Average noninterest-bearing deposits represent 35.81%, and 36.80% of average total deposits for the six months ended June 30, 2026 and June 30, 2025, respectively. California BanCorp and SubsidiaryGAAP to Non-GAAP Reconciliation(Unaudited) The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: (1) efficiency ratio, (2) pre-tax pre-provision income, (3) average tangible common equity, (4) return on tangible common equity, (5) tangible common equity, (6) tangible assets, (7) tangible common equity to tangible asset ratio, and (8) tangible book value per common share. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures. INVESTOR RELATIONS CONTACTTom DolanCalifornia Bank of Commerce, [email protected]

San Diego, Calif., April 28, 2026, April 28, 2026 (GLOBE NEWSWIRE) -- California BanCorp (“us,” “we,” “our,” or the “Company”) (NASDAQ: BCAL), the holding company for California Bank of Commerce, N.A. (the “Bank”) announces its consolidated financial results for the first quarter of 2026. The Company reported net income of $13.8 million, or $0.42 per diluted share, for the first quarter of 2026, compared to $16.4 million, or $0.50 per diluted share for the fourth quarter of 2025, and $16.9 million, or $0.52 per diluted share for the first quarter of 2025. “Our merger has delivered exactly what we expected—a stronger balance sheet, broader market reach, and a foundation for sustained growth,” said David Rainer, Chairman and CEO of the Company and Bank. “Today, we operate with a true statewide footprint across California’s most dynamic markets, creating new opportunities to deepen relationships and expand our franchise. We are investing in top-tier production talent as we continue to focus on organic growth. The energy across our organization is high, and we are confident in the trajectory ahead.” First Quarter 2026 Highlights 1 Reconciliations of non–U.S. generally accepted accounting principles (“GAAP”) measures are set forth at the end of this press release. First Quarter Operating Results Net Income Net income for the first quarter of 2026 was $13.8 million, or $0.42 per diluted share, compared with $16.4 million, or $0.50 per diluted share in the fourth quarter of 2025. Pre-tax, pre-provision income (non-GAAP1) for the first quarter was $18.7 million, an increase of $717 thousand from the prior quarter. The net income and diluted earnings per share decrease were largely driven by slightly lower net interest income, reversal of provision for credit losses and noninterest income, partially offset by lower noninterest expense. Net Interest Income and Net Interest Margin Net interest income for the first quarter of 2026 was $42.1 million, compared with $42.9 million in the prior quarter. The decrease in net interest income was primarily due to a $2.4 million decrease in total interest and dividend income, partially offset by a $1.6 million decrease in total interest expense in the first quarter of 2026, as compared with the prior quarter. The decrease in net interest income was also impacted by two fewer days in the current quarter than the prior quarter. During the first quarter of 2026, loan interest income decreased by $1.8 million, including a decrease of $575 thousand in accretion from the net purchase accounting discounts on acquired loans and a reversal of nonaccrual loans’ interest income of $479 thousand, coupled with a decrease of $1.4 million in interest income from deposits in other financial institutions, partially offset by an increase of $375 thousand in total debt securities income and an increase of $367 thousand in dividend income from restricted stock investments and other bank stock. The decrease in interest income was mainly due to an ten basis point decrease in the yield on interest-earning assets and a decrease in average deposits in other financial institutions of $88.9 million, partially offset by increases in average total loans of $32.3 million, average total debt securities of $35.3 million and average Fed funds sold/resale agreements of $8.0 million. The decrease in interest expense for the first quarter of 2026 was primarily due to a $1.6 million decrease in interest expense on total interest-bearing deposits, the result of a 23 basis point decrease in the cost of average total interest-bearing deposits, coupled with a $7.4 million decrease in average total interest-bearing deposits. Net interest margin for the first quarter of 2026 was 4.47%, compared with 4.44% in the prior quarter. The increase was primarily related to the 14 basis point decrease in the cost of funds outpacing the ten basis point decrease in the total interest-earning assets yield. The yield on total average interest-earning assets in the first quarter of 2026 was 5.72%, compared with 5.82% in the prior quarter. The yield on average total loans in the first quarter of 2026 was 6.14%, a decrease of 17 basis points from 6.31% in the prior quarter. The yield on average total loans in the first quarter of 2026 included the impact of the reversal of nonaccrual loan interest noted above, which decreased the overall loan yield by six basis points. There was no significant reversal of interest income in the prior quarter. Accretion income from the net purchase accounting discounts on acquired loans was $3.2 million, increasing the yield on average total loans by 44 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased the interest expense by $388 thousand, the combination of which increased the net interest margin by 30 basis points in the first quarter of 2026. In the prior quarter, accretion income from the net purchase accounting discounts on acquired loans was $3.8 million, increasing the yield on average total loans by 51 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased the interest expense by $389 thousand, the combination of which increased the net interest margin by 36 basis points. Cost of funds for the first quarter of 2026 was 1.36%, a decrease of 14 basis points from 1.50% in the prior quarter. The decrease was primarily driven by a 23 basis point decrease in the cost of average total interest-bearing deposits. The amortization expense of $388 thousand from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium contributed five basis points to the cost of funds. Average noninterest-bearing demand deposits decreased $27.4 million to $1.21 billion and represented 34.95% of total average deposits for the first quarter of 2026, compared with $1.23 billion and 35.39%, respectively, in the prior quarter; average interest-bearing deposits decreased $7.4 million to $2.24 billion during the first quarter of 2026. The total cost of deposits in the first quarter of 2026 was 1.29%, compared with 1.43% in the prior quarter. The cost of total interest-bearing deposits decreased 23 basis points, driven primarily by the Company’s ongoing deposit pricing and mix strategy in the first quarter of 2026. Average total borrowings increased $674 thousand to $34.4 million in the first quarter of 2026, primarily due to a $304 thousand increase in average Federal Home Loan Bank (“FHLB”) advances from an overnight advance and $370 thousand increase in average subordinated debt due to accretion of discounts. The average cost of total borrowings was 8.25% for the first quarter of 2026, up from 8.19% in the prior quarter. Reversal of Provision for Credit Losses The Company recorded a reversal of provision for credit losses of $381 thousand for the first quarter of 2026, compared with a reversal of provision for credit losses of $4.4 million in the prior quarter. The reversal of provision for credit losses in the first quarter of 2026 was related to the ALL. There was no reversal of provision for credit losses for unfunded loan commitments during the first quarter of 2026. Total unfunded loan commitments increased by $38.7 million to $925.1 million at March 31, 2026, compared to $886.4 million in unfunded loan commitments at December 31, 2025. The provision for credit losses for loans held for investment in the first quarter of 2026 was a reversal of $381 thousand, a decrease of $3.8 million from a reversal of provision for credit losses of $4.2 million in the prior quarter. The decrease was driven primarily by the changes in the reasonable and supportable forecast, primarily related to the economic outlook for California, coupled with a decrease in loan balances, changes in the portfolio mix, and changes in the qualitative factors, partially offset by an increase in the criticized loan loss rates, which are updated annually in the model, despite a decline in criticized loan balances. The Company’s management continues to monitor macroeconomic variables including changes in interest rates, uncertainty in the current economic environment, and elevated geopolitical risks related to ongoing conflicts in the Middle East. Management believes it has appropriately provisioned for the current environment. Noninterest Income Total noninterest income was $2.1 million in the first quarter of 2026, a decrease of $858 thousand compared with $3.0 million in the fourth quarter of 2025. Other charges and fees decreased $820 thousand in the first quarter due primarily to lower income from equity investments of $181 thousand in the first quarter compared to $948 thousand in the prior quarter. Noninterest Expense Total noninterest expense for the first quarter of 2026 was $25.5 million, a decrease of $2.4 million from total noninterest expense of $27.9 million in the prior quarter. Salaries and employee benefits increased $136 thousand during the first quarter of 2026 to $16.6 million primarily as a result of increases in payroll taxes typically occurring in the first quarter each year, partially offset by a decrease in severance costs compared to the prior quarter. There were no similar severance costs in the current quarter. Additionally, the decrease in litigation settlements of $2.0 million in the first quarter was primarily due to the recording of non-recurring litigation settlements of $2.0 million in the prior quarter. Efficiency ratio (non-GAAP1) for the first quarter of 2026 was 57.69%, compared with 60.80% in the prior quarter. Income Tax In the first quarter of 2026, the Company’s income tax expense was $5.3 million, compared with $6.0 million for the fourth quarter of 2025. The effective rate was 27.8% for the first quarter of 2026 and 26.7% for the fourth quarter of 2025. The increase in the effective tax rate for the first quarter of 2026 was primarily attributable to a lower benefit from low-income housing tax credit investments as well as lower pre-tax income paired with minimal change in other permanently non-deductible expenses. Balance Sheet Assets Total assets at March 31, 2026 were $4.05 billion, an increase of $15.3 million or 0.4% from December 31, 2025. The increase in total assets from the prior quarter was primarily related to an increase in cash and cash equivalents of $11.2 million, and an increase in available-for-sale debt securities of $63.7 million, partially offset by a $62.1 million decrease in loans, including loans held for sale, as compared to the prior quarter. Loans Total loans held for investment (“LHFI”) were $2.97 billion at March 31, 2026, a decrease of $61.1 million, compared with December 31, 2025. During the first quarter of 2026, there were new originations of $98.4 million, partially offset by net paydowns of $42.3 million, loan payoffs of $108.6 million, and a loan transferred to other real estate owned (“OREO”) of $8.6 million. Total loans secured by real estate decreased by $34.7 million, of which multifamily loans decreased $51.1 million and 1-4 family residential loans decreased by $13.3 million; commercial and industrial loans decreased by $26.2 million; and other consumer loans decreased by $178 thousand. These decreases were partially offset by an increase in other commercial real estate loans of $28.2 million and construction and land development loans of $1.5 million. The Company had $24.1 million in loans held for sale at March 31, 2026, consisting of $7.6 million SBA 7(a) loans and $16.5 million consumer solar loans, compared with $25.1 million at December 31, 2025, consisting of $7.8 million of SBA 7(a) loans and $17.3 million consumer solar loans. Loan delinquencies for loans held for sale totaled $719 thousand, including $281 thousand of SBA 7(a) loan and $298 thousand of consumer solar loans that were 30–89 days past due, and $140 thousand of consumer solar loans that were more than 90 days past due and still accruing interest. The Company recorded a $266 thousand valuation allowance related to its consumer solar loans in the first quarter of 2026. Deposits Total deposits at March 31, 2026 were $3.39 billion, an increase of $22.9 million from December 31, 2025. The increase was primarily due to an increase in noninterest-bearing demand deposits of $69.1 million, partially offset by decreases in interest-bearing non-maturity deposits of $23.9 million, non-brokered time deposits of $18.6 million, and brokered time deposits of $3.8 million. Noninterest-bearing demand deposits at March 31, 2026, were $1.25 billion, or 36.8% of total deposits, compared with $1.18 billion, or 35.0% of total deposits at December 31, 2025. At March 31, 2026, total interest-bearing deposits were $2.15 billion, compared with $2.19 billion at December 31, 2025. At March 31, 2026, the Company did not have any brokered time deposits. The Company offers the Insured Cash Sweep product and Certificate of Deposit Account Registry Service, each of which provides reciprocal deposit placement services to fully qualified large customer deposits for FDIC insurance among other participating banks. Total reciprocal deposits were $723.7 million, or 21.3% of total deposits at March 31, 2026, compared with $743.6 million, or 22.1% of total deposits at December 31, 2025. Federal Home Loan Bank (“FHLB”) and Liquidity At March 31, 2026 and December 31, 2025, the Company had no FHLB or Federal Reserve Discount Window borrowings. At March 31, 2026, the Company had available borrowing capacity from an FHLB secured line of credit of approximately $756.7 million and available borrowing capacity from the Federal Reserve Discount Window of approximately $318.8 million. The Company also had available borrowing capacity from four unsecured credit lines from correspondent banks of approximately $90.5 million at March 31, 2026, with no outstanding borrowings. Total available borrowing capacity was $1.17 billion at March 31, 2026. Additionally, the Company had unpledged liquid securities at fair value of approximately $197.8 million and cash and cash equivalents of $411.1 million at March 31, 2026. Asset Quality Total non-performing assets were $39.2 million, or 0.97% of total assets at March 31, 2026, compared with $16.1 million, or 0.40% of total assets at December 31, 2025. Total non-performing loans were $30.6 million, or 1.03% of total loans held for investment at March 31, 2026, compared with $16.1 million, or 0.53% of total loans held for investment at December 31, 2025. Total nonperforming loans increased in the first quarter of 2026 primarily due to the addition of two borrower relationships that transitioned from substandard accrual to nonaccrual. The first of these relationships consists of two commercial real estate loans with a combined net carrying value of $17.8 million at March 31, 2026. These loans are secured by a 123-acre property operated as an event venue in the Los Angeles area and were originated in 2022, with a combined 50% loan to value at origination. These two loans are classified as individually evaluated, collateral-dependent loans and no allowance was recorded at March 31, 2026. The Company is aware the borrower is working with a cash buyer to sell the event venue, in which case the loans will be paid off with the sale proceeds. Regardless of the potential sale outcome, the full repayment of these loans is anticipated, and the Company is aggressively pursuing the resolution of this matter. The other relationship, which was reclassified as substandard nonaccrual, is a commercial real estate loan with a net carrying value at March 31, 2026, of $5.8 million. The collateral for this loan is located in Dana Point Calif.; the loan was originated in 2022 with an original loan to value of 56%. This loan is classified as an individually evaluated, collateral-dependent loan and no allowance was recorded at March 31, 2026, as a full repayment is anticipated. The Company foreclosed on a property securing a construction loan for a single-family residence and transferred it to OREO, net, with an estimated “As-Is” land fair value of $9.6 million per the February 5, 2026 appraisal. No additional charge-off was required at the time of transfer based on the current “As-Is” collateral value, after accounting for estimated selling cost. Special mention loans decreased by $18.7 million during the first quarter of 2026 to $53.7 million at March 31, 2026. The decrease in the special mention loans was due mostly to $21.0 million of loans downgraded to substandard, including $17.8 million related to the aforementioned two commercial real estate loans downgraded to substandard nonaccrual, coupled with $7.9 million in payoffs, $963 thousand in upgrades to pass rating and $861 thousand in net paydowns, partially offset by $12.0 million of loans downgraded from a pass rating. Substandard loans increased by $11.7 million during the first quarter of 2026 to $72.4 million at March 31, 2026. The increase in the substandard loans was due primarily to $21.0 million in downgrades from special mention to substandard, and $5.8 million related to the aforementioned commercial real estate loan downgraded to substandard nonaccrual, partially offset by an $8.6 million construction loan transferred to OREO, $4.2 million in loans upgraded to a pass rating, and $2.3 million in net paydowns. The Company had no LHFI that were over 90 days past due and still accruing interest at March 31, 2026 and December 31, 2025, respectively. Loan delinquencies (30-89 days past due, excluding nonaccrual loans) totaled $12.8 million at March 31, 2026, compared with $14.7 million in such loan delinquencies at December 31, 2025. The decrease was primarily due to an $8.0 million multifamily loan that was repaid in full, a $5.8 million commercial real estate loan downgraded to substandard nonaccrual described above, partially offset by $8.7 million of commercial real estate loans, $2.7 million of 1-4 family residential loans with the same guarantor in common related to the OREO construction property discussed above, and $788 thousand of commercial and industrial loans that became delinquent during the first quarter of 2026. The allowance for credit losses, which is comprised of the ALL and reserve for unfunded loan commitments, totaled $36.1 million at March 31, 2026, compared with $36.5 million at December 31, 2025. The $346 thousand decrease in the allowance for credit losses included a $381 thousand reversal of provision for credit losses for the loan portfolio, and gross recoveries of $35 thousand for the quarter ended March 31, 2026. There were no charge-offs of loans during the first quarter of 2026. The ALL was $34.0 million, or 1.14% of total loans held for investment at March 31, 2026, compared with $34.3 million, or 1.13% at December 31, 2025. Capital Tangible book value per common share (non-GAAP1) at March 31, 2026 was $13.97, compared with $13.79 at December 31, 2025. In the first quarter of 2026, tangible book value was primarily impacted by net income of $13.8 million for the first quarter, and stock-based compensation activity, partially offset by an increase in net of tax unrealized losses on available-for-sale debt securities, and the Company’s stock repurchase program activity and cash dividends, which reduced the tangible book value per common share by $0.23 and $0.10, respectively. Other comprehensive losses related to net of tax unrealized losses on available-for-sale debt securities increased by $2.1 million to $3.8 million at March 31, 2026, from $1.6 million at December 31, 2025. The increase in the net of tax unrealized losses on available-for-sale debt securities was attributable to non-credit related factors, including a decrease in bond prices at the long end of the yield curve and the general interest rate environment, and growth in the available-for-sale debt securities. Tangible common equity (non-GAAP1) as a percentage of total tangible assets (non-GAAP1) at March 31, 2026, increased to 11.46% from 11.45% in the prior quarter, and net of tax unrealized losses on available-for-sale debt securities as a percentage of tangible common equity (non-GAAP1) at March 31, 2026 increased to 0.8% from 0.4% in the prior quarter. The Company’s preliminary capital ratios exceed the minimums required to be “well-capitalized” at March 31, 2026. Stock Repurchase Program During the first quarter of 2026, the Company repurchased 409,915 shares of its common stock at an average price of $18.08 and a total cost of $7.4 million under the stock repurchase program. The remaining maximum number of shares authorized to be repurchased under this program was 978,157 shares at March 31, 2026. ABOUT CALIFORNIA BANCORP California BanCorp (NASDAQ: BCAL) is a registered bank holding company headquartered in San Diego, California. California Bank of Commerce, N.A., a national banking association chartered under the laws of the United States (the “Bank”) and regulated by the Office of the Comptroller of the Currency, is a wholly owned subsidiary of California BanCorp. Established in 2001 and headquartered in San Diego, California, the Bank offers a range of financial products and services to individuals, professionals, and small to medium-sized businesses through its 14 branch offices including 11 commercial banking offices serving California. The Bank’s solutions-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with its clients. Additional information is available at www.californiabankofcommerce.com. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS In addition to historical information, this release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and other matters that are not historical facts. Examples of forward-looking statements include, among others, statements regarding expectations, plans or objectives for future operations, products or services, loan recoveries, projections, and expectations regarding the adequacy of reserves for credit losses, as well as forecasts relating to financial and operating results or other measures of economic performance. Forward-looking statements reflect management’s current view about future events and involve risks and uncertainties that may cause actual results to differ from those expressed in the forward-looking statement or historical results. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and often include the words or phrases such as “aim,” “can,” “may,” “could,” “predict,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “hope,” “intend,” “plan,” “potential,” “project,” “will likely result,” “continue,” “seek,” “shall,” “possible,” “projection,” “optimistic,” and “outlook,” and variations of these words and similar expressions. Factors that could cause or contribute to results differing from those in or implied in the forward-looking statements include but are not limited to the impact of bank failures or other adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks; changes in real estate markets and valuations; the impact on financial markets from geopolitical conflicts; inflation, interest rate, market and monetary fluctuations and general economic conditions, either nationally or locally in the areas in which the Company conducts business; increases in competitive pressures among financial institutions and businesses offering similar products and services; general credit risks related to lending, including changes in the value of real estate or other collateral, the financial condition of borrowers, the effectiveness of our underwriting practices and the risk of fraud; higher than anticipated defaults in the Company’s loan portfolio; changes in management’s estimate of the adequacy of the allowance for credit losses or the factors the Company uses to determine the allowance for credit losses; changes in demand for loans and other products and services offered by the Company; the possibility that the Company may reduce or discontinue the payment of dividends on its common stock; the possibility that the Company may discontinue, reduce or otherwise limit the level of repurchases of its common stock that it may make from time to time pursuant to its stock repurchase program; the costs and outcomes of litigation; legislative or regulatory changes or changes in accounting principles, policies or guidelines; and other risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”) and other documents the Company may file with the SEC from time to time. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and other documents the Company files with the SEC from time to time. Any forward-looking statement made in this release is based only on information currently available to management and speaks only as of the date on which it is made. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements or to conform such forward-looking statements to actual results or to changes in its opinions or expectations, except as required by law. California BanCorp and Subsidiary Financial Highlights (Unaudited) (1) Included in “Accrued interest and other liabilities” on the consolidated balance sheets. California BanCorp and Subsidiary Balance Sheets (Unaudited) California BanCorp and Subsidiary Income Statements - Quarterly and Year-to-Date (Unaudited) (1) Included provision for (reversal of) credit losses on unfunded loan commitments of zero, $(173) thousand and $(618) thousand for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively California BanCorp and Subsidiary Average Balance Sheets and Yield Analysis (Unaudited) (1) Tax-exempt debt securities yields are presented on a tax equivalent basis using a 21% tax rate. (2) Average noninterest-bearing deposits represent 34.95%, 35.39% and 37.37% of average total deposits for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively. California BanCorp and Subsidiary GAAP to Non-GAAP Reconciliation (Unaudited) The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: (1) efficiency ratio, (2) pre-tax pre-provision income, (3) average tangible common equity, (4) return on average assets, (5) return on average equity, (6) return on tangible common equity, (7) tangible common equity, (8) tangible assets, (9) tangible common equity to tangible asset ratio, and (10) tangible book value per common share. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures. INVESTOR RELATIONS CONTACT Kevin Mc Cabe California Bank of Commerce, N.A. [email protected] 818.637.7065

San Diego, Calif., Jan. 28, 2026 (GLOBE NEWSWIRE) -- California BanCorp (“us,” “we,” “our,” or the “Company”) (NASDAQ: BCAL), the holding company for California Bank of Commerce, N.A. (the “Bank”) announces its consolidated financial results for the fourth quarter and full year of 2025. The Company reported net income of $16.4 million, or $0.50 per diluted share, for the fourth quarter of 2025, compared to $15.7 million, or $0.48 per diluted share for the third quarter of 2025, and $16.8 million, or $0.51 per diluted share for the fourth quarter of 2024. The Company reported net income of $63.1 million, or $1.93 per diluted share, for the full year of 2025, compared to net income of $5.4 million, or $0.22 per diluted share for the full year of 2024. “2025 was a transformational year for California BanCorp, with the successful completion and integration of our 2024 merger that extended our footprint over all the best markets in California,” said David Rainer, Chairman and CEO of the Company and Bank. “During the last year we also restructured and derisked our balance sheet. We reduced high-risk loans, improving our credit profile, and terminated our dependence on high cost brokered deposits while growing core deposits, lowering our cost of funds. We are now very well positioned and remain focused on the organic growth of loans and deposits through our relationship-based business model in all our markets. “Strong earnings throughout the year and prudent capital management allowed us to continue creating shareholder value through the repurchase of our stock and the implementation of a quarterly dividend for our shareholders. “The recent M&A activity has increased the scarcity of relationship-based commercial banks that offer a high-touch service model like ours to small and middle-market businesses. With the traction we are achieving after a transformative year, and a footprint covering the very best markets in the state, and arguably the country, we believe there is a very bright future for our franchise. As we reported earlier this week, we added five experienced bankers, including two veteran commercial bankers with deep roots in the community, to our Northern California team. We are well positioned for growth and to take advantage of any disruption in local commercial banking markets due to M&A, and we will continue to be opportunistic in adding high-level talent across all the markets we serve. “Steven Shelton, our former CEO who retired in December, played a crucial role in helping us get to where we are today and we thank him for all the contributions he made to our success, and wish him all the best in his retirement.” Fourth Quarter 2025 Highlights Full Year 2025 Highlights Fourth Quarter Operating Results Net Income Net income for the fourth quarter of 2025 was $16.4 million, or $0.50 per diluted share, compared with $15.7 million, or $0.48 per diluted share in the third quarter of 2025. Pre-tax, pre-provision income (non-GAAP1) for the fourth quarter was $18.0 million, a decrease of $3.8 million from the prior quarter. The net income and diluted earnings per share increase were largely driven by higher net interest income after reversal of provision for credit losses and noninterest income, partially offset by higher noninterest expense primarily related to one-time severance costs and litigation settlements. Net Interest Income and Net Interest Margin Net interest income for the fourth quarter of 2025 was $42.9 million, compared with $42.5 million in the prior quarter. The increase in net interest income was primarily due to a $1.4 million decrease in total interest expense, partially offset by a $1.0 million decrease in total interest and dividend income in the fourth quarter of 2025, as compared with the prior quarter. During the fourth quarter of 2025, loan interest income decreased by $1.3 million, including a decrease of $640 thousand in accretion from the net purchase accounting discounts on acquired loans, partially offset by increases of $257 thousand in total debt securities income and $31 thousand in interest and dividend income from other financial institutions. The increase in interest income was mainly due to increases in average deposits in other financial institutions of $63.1 million, average total debt securities of $29.4 million, and average total loan balances of $6.9 million, partially offset by a decrease in average Fed funds sold/resale agreements of $2.7 million. The decrease in interest expense for the fourth quarter of 2025 was primarily due to a $981 thousand decrease in interest expense on interest-bearing deposits, the result of a 22 basis point decrease in the cost of average interest-bearing deposits and a $416 thousand decrease in total borrowing costs mostly related to the redemption of $20.0 million of 5.00% subordinated notes in September 2025, partially offset by a $42.7 million increase in average interest-bearing deposits. Net interest margin for the fourth quarter of 2025 was 4.44%, compared with 4.52% in the prior quarter. The decrease was primarily related to a 26 basis point decrease in the total interest-earning assets yield, partially offset by a 19 basis point decrease in the cost of funds. The yield on total average interest-earning assets in the fourth quarter of 2025 was 5.82%, compared with 6.08% in the prior quarter. The yield on average total loans in the fourth quarter of 2025 was 6.31%, a decrease of 19 basis points from 6.50% in the prior quarter. Accretion income from the net purchase accounting discounts on acquired loans was $3.8 million, increasing the yield on average total loans by 51 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased the interest expense by $389 thousand, the combination of which increased the net interest margin by 36 basis points in the fourth quarter of 2025. In the prior quarter, accretion income from the net purchase accounting discounts on acquired loans was $4.5 million, increasing the yield on average total loans by 59 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased the interest expense by $559 thousand, the combination of which increased the net interest margin by 41 basis points. Cost of funds for the fourth quarter of 2025 was 1.50%, a decrease of 19 basis points from 1.69% in the prior quarter. The decrease was primarily driven by a drop of 14 basis points in the cost of total borrowings, which was primarily due to the decrease in average total borrowings of $19.3 million from the redemption of the $20.0 million subordinated notes in September 2025, coupled with a 22 basis point decrease in the cost of average interest-bearing deposits. The amortization expense of $389 thousand from the purchase accounting discounts on acquired subordinated debt contributed 4 basis points to the cost of funds. Average noninterest-bearing demand deposits increased $49.5 million to $1.23 billion and represented 35.4% of total average deposits for the fourth quarter of 2025, compared with $1.18 billion and 34.9%, respectively, in the prior quarter; average interest-bearing deposits increased $42.7 million to $2.25 billion during the fourth quarter of 2025. The total cost of deposits in the fourth quarter of 2025 was 1.43%, compared with 1.59% in the prior quarter. The cost of total interest-bearing deposits decreased 22 basis points primarily due to the Company’s ongoing strategy to pay off higher cost money market deposits, savings deposits and time deposits in the fourth quarter of 2025. Average total borrowings decreased $19.3 million to $33.7 million in the fourth quarter of 2025, primarily due to the redemption of the $20.0 million subordinated notes in September 2025. The average cost of total borrowings was 8.19% for the fourth quarter of 2025, down from 8.33% in the prior quarter. Reversal of Provision for Credit Losses The Company recorded a reversal of provision for credit losses of $4.4 million for the fourth quarter of 2025, compared with $15 thousand in the prior quarter. Total net charge-offs were $2.7 million in the fourth quarter of 2025, which consisted of $2.8 million of gross charge-offs, offset by $42 thousand of gross recoveries. The reversal of provision for credit losses in the fourth quarter of 2025 included a $173 thousand reversal of provision for credit losses for unfunded loan commitments related to the decrease in unfunded loan commitments during the fourth quarter of 2025, coupled with a decrease in the loss rates used to estimate the allowance for credit losses on unfunded commitments. Total unfunded loan commitments increased $7.4 million to $886.4 million at December 31, 2025, compared to $879.0 million in unfunded loan commitments at September 30, 2025. The provision for credit losses for loans held for investment in the fourth quarter of 2025 was a reversal of $4.2 million, a decrease of $4.4 million from a provision for credit losses of $221 thousand in the prior quarter. The decrease was driven primarily by the decreases in special mention loans and substandard accruing loans, changes in the reasonable and supportable forecast, primarily related to the economic outlook for California, and changes in the qualitative factors. The Company’s management continues to monitor macroeconomic variables related to changes in interest rates and the concerns of an economic downturn, and believes it has appropriately provisioned for the current environment. Noninterest Income Total noninterest income was $3.0 million in the fourth quarter of 2025, an increase of $327 thousand compared with $2.7 million in the third quarter of 2025. Other charges and fees increased $644 thousand in the fourth quarter due primarily to higher income from equity investments. Bank owned life insurance income decreased $396 thousand in the fourth quarter as the previous quarter included a $400 thousand death benefit. No comparable death benefit income was recognized in the current quarter. Noninterest Expense Total noninterest expense for the fourth quarter of 2025 was $27.9 million, an increase of $4.5 million from total noninterest expense of $23.4 million in the prior quarter. Salaries and employee benefits increased $1.7 million during the fourth quarter of 2025 to $16.4 million primarily as a result of severance costs and related increases in payroll taxes. During the fourth quarter of 2025, the Company recorded non-recurring litigation settlements of $2.0 million. Efficiency ratio (non-GAAP1) for the fourth quarter of 2025 was 60.80%, compared with 51.75% in the prior quarter. Excluding severance costs and net litigation settlements, the efficiency ratio (non-GAAP1) for the fourth quarter of 2025 would have been 52.72%. Income Tax In the fourth quarter of 2025, the Company’s income tax expense was $6.0 million, compared with $6.1 million for the third quarter of 2025. The effective rate was 26.7% for the fourth quarter of 2025 and 28.1% for the third quarter of 2025. The decrease in the effective tax rate for the fourth quarter of 2025 was primarily attributable to changes in the net benefit related to a low income housing investment, and the vesting and exercise of equity awards combined with changes in the Company’s stock price over time. Balance Sheet Assets Total assets at December 31, 2025 were $4.03 billion, a decrease of $67.8 million or 1.7% from September 30, 2025. The decrease in total assets from the prior quarter was primarily related to a decrease in cash and cash equivalents of $159.3 million, partially offset by increases in available-for-sale debt securities of $25.5 million and loans, including loans held for sale, of $62.0 million, as compared to the prior quarter. Loans Total loans held for investment were $3.03 billion at December 31, 2025, an increase of $43.6 million, compared with September 30, 2025. During the fourth quarter of 2025, there were new originations of $149.7 million and net advances of $3.9 million, offset by loan payoffs of $87.4 million, transfer to loans held for sale of $19.8 million, and charge-offs of loans in the amount of $2.8 million. Total loans secured by real estate increased by $53.1 million, of which multifamily loans increased $26.6 million and 1-4 family residential loans increased by $628 thousand; commercial real estate and other loans increased by $59.7 million; and commercial and industrial loans increased by $10.8 million. These increases were partially offset by a decrease in construction and land development loans of $33.9 million and consumer loans decreased by $20.3 million. During the fourth quarter of 2025, the Company transferred its $17.3 million solar loan portfolio to held for sale at estimated fair value and recognized a charge-off of $2.5 million. The Company had $25.1 million in loans held for sale at December 31, 2025, compared with $6.7 million at September 30, 2025. Deposits Total deposits at December 31, 2025 were $3.37 billion, a decrease of $89.1 million from September 30, 2025. The decrease primarily consisted of decreases in noninterest-bearing demand deposits of $59.7 million, interest-bearing non-maturity deposits of $17.6 million, and non-brokered time deposits of $11.7 million. Noninterest-bearing demand deposits at December 31, 2025, were $1.18 billion, or 35.0% of total deposits, compared with $1.24 billion, or 35.8% of total deposits at September 30, 2025. At December 31, 2025, total interest-bearing deposits were $2.19 billion, compared with $2.22 billion at September 30, 2025. At December 31, 2025, total brokered time deposits were maintained at $3.8 million. The Company offers the Insured Cash Sweep (ICS) product and Certificate of Deposit Account Registry Service (CDARS), each of which provides reciprocal deposit placement services to fully qualified large customer deposits for FDIC insurance among other participating banks. Total reciprocal deposits were $743.6 million, or 22.1% of total deposits at December 31, 2025, compared with $770.3 million, or 22.3% of total deposits at September 30, 2025. Federal Home Loan Bank (“FHLB”) and Liquidity At December 31, 2025 and September 30, 2025, the Company had no FHLB or Federal Reserve Discount Window borrowings. At December 31, 2025, the Company had available borrowing capacity from an FHLB secured line of credit of approximately $749.3 million and available borrowing capacity from the Federal Reserve Discount Window of approximately $327.8 million. The Company also had available borrowing capacity from four unsecured credit lines from correspondent banks of approximately $90.5 million at December 31, 2025, with no outstanding borrowings. Total available borrowing capacity was $1.17 billion at December 31, 2025. Additionally, the Company had unpledged liquid securities at fair value of approximately $192.6 million and cash and cash equivalents of $399.9 million at December 31, 2025. Total borrowings decreased $389 thousand to $33.8 million at December 31, 2025. Asset Quality Total non-performing assets were $16.1 million, or 0.40% of total assets at December 31, 2025, compared with $15.6 million, or 0.38% of total assets at September 30, 2025. Total non-performing loans were $16.1 million, or 0.53% of total loans held for investment at December 31, 2025, compared with $15.6 million, or 0.52% of total loans held for investment at September 30, 2025. The increase in total non-performing loans was primarily due to a downgrade of an SBA guaranteed commercial and industrial loan of $223 thousand, net of the $83 thousand charge-off of the unguaranteed portion, and $302 thousand net increase in existing non-performing loan balances, partially offset by a $39 thousand full charge-off of a separate commercial and industrial loan during the fourth quarter of 2025. Special mention loans decreased by $26.0 million during the fourth quarter of 2025 to $72.4 million at December 31, 2025. The decrease in the special mention loans was due mostly to $28.9 million in loans upgraded to a pass rating, $3.4 million in payoffs and $3.9 million in loans downgraded to substandard, and $2.4 million in net paydowns, partially offset by $12.6 million in loans downgraded from a pass rating. Substandard loans decreased by $24.0 million during the fourth quarter of 2025 to $60.7 million at December 31, 2025. The decrease in the substandard loans was due primarily to $13.8 million in payoffs, $14.8 million in loans upgraded to a pass rating, $249 thousand in charge-offs and $1.5 million in net paydowns, partially offset by $2.5 million in loans downgraded from pass rating and $3.9 million in loans downgraded from special mention rating. The Company had no loans that were over 90 days past due and still accruing interest at December 31, 2025 and September 30, 2025. Loan delinquencies (30-89 days past due, excluding nonaccrual loans) totaled $14.7 million at December 31, 2025, compared with $3.2 million in such loan delinquencies at September 30, 2025. The increase was primarily due to an $8.0 million multifamily loan, a $5.8 million commercial real estate loan, and $824 thousand commercial and industrial loan that became delinquent during the fourth quarter of 2025. In January 2026, the $8.0 million multifamily loan was repaid in full, the $5.8 million commercial real estate loan was downgraded to substandard, and the $824 thousand commercial and industrial loan was brought current. The allowance for credit losses, which is comprised of the ALL and reserve for unfunded loan commitments, totaled $36.5 million at December 31, 2025, compared with $43.6 million at September 30, 2025. The $7.1 million decrease in the allowance for credit losses included a $4.2 million reversal of provision for credit losses for the loan portfolio, net charge-offs of $2.7 million and a $173 thousand reversal of provision for credit losses for unfunded loan commitments for the quarter ended December 31, 2025. The ALL was $34.3 million, or 1.13% of total loans held for investment at December 31, 2025, compared with $41.3 million, or 1.38% at September 30, 2025. Capital Tangible book value per common share (non-GAAP1) at December 31, 2025 was $13.79, compared with $13.39 at September 30, 2025. In the fourth quarter of 2025, tangible book value was primarily impacted by net income of $16.4 million for the fourth quarter, stock-based compensation activity, and a decrease in net of tax unrealized losses on available-for-sale debt securities, partially offset by the Company’s stock repurchase program activity and cash dividends. Other comprehensive losses related to net of tax unrealized losses on available-for-sale debt securities decreased by $431 thousand to $1.6 million at December 31, 2025, from $2.1 million at September 30, 2025. The decrease in the net of tax unrealized losses on available-for-sale debt securities was attributable to non-credit related factors, including a decrease in bond prices at the long end of the yield curve and the general interest rate environment. Tangible common equity (non-GAAP1) as a percentage of total tangible assets (non-GAAP1) at December 31, 2025, increased to 11.45% from 10.94% in the prior quarter, and net of tax unrealized losses on available-for-sale debt securities as a percentage of tangible common equity (non-GAAP1) at December 31, 2025 decreased to 0.4% from 0.5% in the prior quarter. The Company’s preliminary capital ratios exceed the minimums required to be “well-capitalized” at December 31, 2025. Stock Repurchase Program During the fourth quarter of 2025, the Company repurchased 122,428 shares of its common stock at an average price of $16.37 and a total cost of $2.0 million under the stock repurchase program. During the year ended December 31, 2025, the Company repurchased 211,928 shares of its common stock at an average price of $15.89 and a total cost of $3.4 million under the stock repurchase program. The remaining maximum number of shares authorized to be repurchased under this program was 1,388,072 shares at December 31, 2025. ABOUT CALIFORNIA BANCORP California BanCorp (NASDAQ: BCAL) is a registered bank holding company headquartered in San Diego, California. California Bank of Commerce, N.A., a national banking association chartered under the laws of the United States (the “Bank”) and regulated by the Office of the Comptroller of the Currency, is a wholly owned subsidiary of California BanCorp. Established in 2001 and headquartered in San Diego, California, the Bank offers a range of financial products and services to individuals, professionals, and small to medium-sized businesses through its 14 branch offices and four loan production offices serving Northern and Southern California. The Bank’s solutions-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with its clients. Additional information is available at www.californiabankofcommerce.com. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS In addition to historical information, this release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and other matters that are not historical facts. Examples of forward-looking statements include, among others, statements regarding expectations, plans or objectives for future operations, products or services, loan recoveries, projections, and expectations regarding the adequacy of reserves for credit losses, as well as forecasts relating to financial and operating results or other measures of economic performance. Forward-looking statements reflect management’s current view about future events and involve risks and uncertainties that may cause actual results to differ from those expressed in the forward-looking statement or historical results. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and often include the words or phrases such as “aim,” “can,” “may,” “could,” “predict,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “hope,” “intend,” “plan,” “potential,” “project,” “will likely result,” “continue,” “seek,” “shall,” “possible,” “projection,” “optimistic,” and “outlook,” and variations of these words and similar expressions. Factors that could cause or contribute to results differing from those in or implied in the forward-looking statements include but are not limited to the impact of bank failures or other adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks; changes in real estate markets and valuations; the impact on financial markets from geopolitical conflicts; inflation, interest rate, market and monetary fluctuations and general economic conditions, either nationally or locally in the areas in which the Company conducts business; increases in competitive pressures among financial institutions and businesses offering similar products and services; general credit risks related to lending, including changes in the value of real estate or other collateral, the financial condition of borrowers, the effectiveness of our underwriting practices and the risk of fraud; higher than anticipated defaults in the Company’s loan portfolio; changes in management’s estimate of the adequacy of the allowance for credit losses or the factors the Company uses to determine the allowance for credit losses; changes in demand for loans and other products and services offered by the Company; the possibility that the Company may reduce or discontinue the payment of dividends on its common stock; the possibility that the Company may discontinue, reduce or otherwise limit the level of repurchases of its common stock that it may make from time to time pursuant to its stock repurchase program; the costs and outcomes of litigation; legislative or regulatory changes or changes in accounting principles, policies or guidelines; and other risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) and other documents the Company may file with the SEC from time to time. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and other documents the Company files with the SEC from time to time. Any forward-looking statement made in this release is based only on information currently available to management and speaks only as of the date on which it is made. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements or to conform such forward-looking statements to actual results or to changes in its opinions or expectations, except as required by law. California BanCorp and Subsidiary Financial Highlights (Unaudited) California BanCorp and Subsidiary Balance Sheets (Unaudited) California BanCorp and Subsidiary Income Statements - Quarterly and Year-to-Date (Unaudited) California BanCorp and Subsidiary Average Balance Sheets and Yield Analysis (Unaudited) California BanCorp and Subsidiary Average Balance Sheets and Yield Analysis (Unaudited) California BanCorp and Subsidiary GAAP to Non-GAAP Reconciliation (Unaudited) The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: (1) adjusted net income, (2) efficiency ratio, (3) adjusted efficiency ratio, (4) pre-tax pre-provision income, (5) adjusted pre-tax pre-provision income, (6) average tangible common equity, (7) adjusted return on average assets, (8) adjusted return on average equity, (9) return on average tangible common equity, (10) adjusted return on average tangible common equity, (11) tangible common equity, (12) tangible assets, (13) tangible common equity to tangible asset ratio, and (14) tangible book value per common share. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures. INVESTOR RELATIONS CONTACT Kevin Mc Cabe California Bank of Commerce, N.A. [email protected] 818.637.7065

San Diego, Calif., Oct. 28, 2025 (GLOBE NEWSWIRE) -- California BanCorp (“us,” “we,” “our,” or the “Company”) (NASDAQ: BCAL), the holding company for California Bank of Commerce, N.A. (the “Bank”) announces its consolidated financial results for the third quarter of 2025. The Company reported net income of $15.7 million, or $0.48 per diluted share, for the third quarter of 2025, compared to $14.1 million, or $0.43 per diluted share for the second quarter of 2025, and net loss of $16.5 million, or $0.59 per diluted share for the third quarter of 2024. “We are very pleased to report our third quarter 2025 earnings of $15.7 million, with strong deposit growth of $147.4 million, as well as strong loan originations of $158.4 million, with the latter largely offset by payoffs and paydowns, as we wind down the derisking of our consolidated balance sheet,” said David Rainer, Executive Chairman of the Company and Bank. “The progress in our derisking is further reflected in the decrease of our non-performing assets to total assets ratio to 0.38% at September 30, 2025, from 0.46% at June 30, 2025, and 0.76% at December 31, 2024, with no material charge-offs in the third quarter. We continue to prioritize our focus on our core roots as a relationship-based business bank. “We have a solid capital position and have implemented the share repurchase program we originally announced in 2023 and increased in May 2025, opportunistically deploying capital for share repurchases in line with the parameters of the program. We also paid off high-cost subordinated notes of $20.0 million in the third quarter, after paying off $18.0 million in the second quarter. We look to continue deploying our capital with an eye to protecting and increasing shareholder value.” “It has now been over a year since the close of our merger of equals and we believe the results we have reported over the last four quarters are evidence of its financial benefit to our shareholders, and we remain dedicated to our strategy of building a state-wide California commercial banking franchise,” said Steven Shelton, CEO of the Company and Bank. “While there is still an element of economic uncertainty in the business community related to tariffs and trade negotiations, the economy has been resilient so far, and we are optimistic about our future as we continue to provide the outstanding service our clients have come to expect from us.” Third Quarter 2025 Highlights 1 Reconciliations of non–U.S. generally accepted accounting principles (“GAAP”) measures are set forth at the end of this press release. Third Quarter Operating Results Net Income Net income for the third quarter of 2025 was $15.7 million, or $0.48 per diluted share, compared to $14.1 million, or $0.43 per diluted share in the second quarter of 2025. Pre-tax, pre-provision income (non-GAAP1) for the third quarter was $21.8 million, an increase of $2.4 million from the prior quarter. The net income and diluted earnings per share increases were largely driven by slightly higher net interest income after reversal of provision for credit losses and lower noninterest expense, partially offset by lower noninterest income. Net Interest Income and Net Interest Margin Net interest income for the third quarter of 2025 was $42.5 million, compared with $41.4 million in the prior quarter. The increase in net interest income was primarily due to a $1.4 million increase in total interest and dividend income, partially offset by a $304 thousand increase in total interest expense in the third quarter of 2025, as compared to the prior quarter. During the third quarter of 2025, loan interest income decreased by $359 thousand, including a decrease of $713 thousand of accretion income from the net purchase accounting discounts on acquired loans, partially offset by increases of $389 thousand in total debt securities income and $1.4 million in interest and dividend income from other financial institutions. The increase in interest income was mainly due to increases in average deposits in other financial institutions of $157.0 million and average total debt securities of $27.0 million, partially offset by decreases in average total loan balances of $18.1 million and average Fed funds sold/resale agreements of $36.0 million. The increase in interest expense for the third quarter of 2025 was primarily due to a $621 thousand increase in interest expense on interest-bearing deposits, the result of a $130.1 million increase in average interest-bearing deposits, partially offset by a $317 thousand decrease in total borrowing costs mostly related to the redemption of $18.0 million of 5.50% subordinated notes in June 2025. Net interest margin for the third quarter of 2025 was 4.52%, compared with 4.61% in the prior quarter. The decrease was primarily related to a 13 basis point decrease in the total interest-earning assets yield, partially offset by a 4 basis point decrease in the cost of funds. The yield on total average interest-earning assets in the third quarter of 2025 was 6.08%, compared with 6.21% in the prior quarter. The yield on average total loans in the third quarter of 2025 was 6.50%, a decrease of 8 basis points from 6.58% in the prior quarter. Accretion income from the net purchase accounting discounts on acquired loans was $4.5 million, increasing the yield on average total loans by 59 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased the interest expense by $559 thousand, the combination of which increased the net interest margin by 41 basis points in the third quarter of 2025. In the prior quarter, accretion income from the net purchase accounting discounts on acquired loans was $5.2 million, increasing the yield on average total loans by 69 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased the interest expense by $555 thousand, the combination of which increased the net interest margin by 51 basis points. Cost of funds for the third quarter of 2025 was 1.69%, a decrease of 4 basis points from 1.73% in the prior quarter. The decrease was primarily driven by a drop of 20 basis points in the cost of total borrowings, which was primarily due to the decrease in average total borrowings of $14.2 million from the redemption of the $18.0 million subordinated notes in June 2025, coupled with a 6 basis point decrease in the cost of average interest-bearing deposits. The amortization expense of $559 thousand from the purchase accounting discounts on acquired subordinated debt contributed 6 basis points to the cost of funds. Average noninterest-bearing demand deposits increased $3.5 million to $1.18 billion and represented 34.9% of total average deposits for the third quarter of 2025, compared with $1.18 billion and 36.2%, respectively, in the prior quarter; average interest-bearing deposits increased $130.1 million to $2.21 billion during the third quarter of 2025. The total cost of deposits in the third quarter of 2025 was maintained at 1.59%, the same as the prior quarter. The cost of total interest-bearing deposits decreased 6 basis points primarily due to the Company’s ongoing strategy to pay off high cost money market deposits, savings deposits and time deposits in the third quarter of 2025. Average total borrowings decreased $14.2 million to $53.0 million in the third quarter of 2025, primarily due to the redemption of the $18.0 million subordinated notes in June 2025. The average cost of total borrowings was 8.33% for the third quarter of 2025, down from 8.53% in the prior quarter. Reversal of Provision for Credit Losses The Company recorded a reversal of provision for credit losses of $15 thousand for the third quarter of 2025, compared to $634 thousand in the prior quarter. Total net charge-offs were $39 thousand in the third quarter of 2025, which consisted of $323 thousand of gross charge-offs, offset by $284 thousand of gross recoveries. The reversal of provision for credit losses in the third quarter of 2025 included a $236 thousand reversal of provision for credit losses for unfunded loan commitments related to the decrease in unfunded loan commitments during the third quarter of 2025, coupled with a decrease in average funding rates used to estimate the allowance for credit losses on unfunded commitments. Total unfunded loan commitments decreased $22.2 million to $879.0 million at September 30, 2025, compared to $901.2 million in unfunded loan commitments at June 30, 2025. The provision for credit losses for loans held for investment in the third quarter of 2025 was $221 thousand, an increase of $884 thousand from a reversal of provision for credit losses of $663 thousand in the prior quarter. The increase was driven primarily by changes in the reasonable and supportable forecast, primarily related to the economic outlook for California, and an increase in the allowance for a collateral-dependent loan, partially offset by changes in the composition of the loans held for investment portfolio, and changes in qualitative factors. The Company’s management continues to monitor macroeconomic variables related to changes in interest rates and the concerns of an economic downturn, and believes it has appropriately provisioned for the current environment. Noninterest Income Total noninterest income was $2.7 million in the third quarter of 2025, a decrease of $188 thousand compared to $2.9 million in the second quarter of 2025. Other charges and fees decreased $456 thousand in the third quarter due primarily to lower income from equity investments. Bank owned life insurance income increased $380 thousand in the third quarter primarily related to a $400 thousand death benefit recognized in the current quarter. No comparable death benefit income was recognized in the prior quarter. Noninterest Expense Total noninterest expense for the third quarter of 2025 was $23.4 million, a decrease of $1.5 million from total noninterest expense of $24.8 million in the prior quarter. Salaries and employee benefits decreased $576 thousand during the third quarter of 2025 to $14.7 million. The decrease in salaries and employee benefits was primarily related to the decrease in bonus and incentive compensation and payroll taxes. Other real estate owned expense decreased $872 thousand during the third quarter of 2025 to income of $10 thousand. During the second quarter of 2025, the Company sold other real estate owned (“OREO”) and recognized a $862 thousand loss. There was no comparable transaction in the current quarter. Efficiency ratio (non-GAAP1) for the third quarter of 2025 was 51.75%, compared to 56.09% in the prior quarter. The $862 thousand loss on sale of other real estate owned negatively impacted the efficiency ratio by 1.9% during the second quarter of 2025. There was no similar activity during the current quarter. Income Tax In the third quarter of 2025, the Company’s income tax expense was $6.1 million, compared with $6.0 million for the second quarter of 2025. The effective rate was 28.1% for the third quarter of 2025 and 29.8% for the second quarter of 2025. The decrease in the effective tax rate for the third quarter of 2025 was primarily attributable to the increase of the tax exempt death benefit payout of the bank-owned life insurance, the vesting and exercise of equity awards combined with changes in the Company’s stock price over time and the lower state tax rate as a result of the California’s single-sales-factor apportionment bill enacted in the second quarter of 2025, which reduced the Company’s California state apportioned rate. A remeasurement of the Company’s state net deferred tax assets resulted in a $269 thousand additional tax expense recorded in the second quarter of 2025 to account for the adoption of the bill. There was no comparable remeasurement tax expense in the current quarter. Balance Sheet Assets Total assets at September 30, 2025 were $4.10 billion, an increase of $147.5 million or 3.7% from June 30, 2025. The increase in total assets from the prior quarter was primarily related to an increase in cash and cash equivalents of $129.1 million and an increase in available-for-sale debt securities of $21.2 million, partially offset by a decrease in loans, including loans held for sale, of $664 thousand, as compared to the prior quarter. Loans Total loans held for investment were $2.99 billion at September 30, 2025, a decrease of $1.3 million, compared to June 30, 2025. During the third quarter of 2025, there were new originations of $158.4 million, offset by net paydowns of $12.0 million, loan payoffs of $147.4 million, and charge-offs of loans in the amount of $323 thousand. Total loans secured by real estate increased by $11.8 million, of which multifamily loans increased $39.1 million and 1-4 family residential loans increased by $1.9 million, partially offset by decreases in construction and land development loans of $12.0 million and commercial real estate and other loans of $17.2 million. Commercial and industrial loans decreased by $12.8 million, and consumer loans decreased by $288 thousand. The Company had $6.7 million in loans held for sale at September 30, 2025, compared to $6.1 million at June 30, 2025. Deposits Total deposits at September 30, 2025 were $3.46 billion, an increase of $147.4 million from June 30, 2025. The increase primarily consisted of increases in noninterest-bearing demand deposits of $19.9 million and interest-bearing non-maturity deposits of $151.8 million, partially offset by a $24.3 million decrease in non-brokered time deposits. Noninterest-bearing demand deposits at September 30, 2025, were $1.24 billion, or 35.8% of total deposits, compared with $1.22 billion, or 36.8% of total deposits at June 30, 2025. At September 30, 2025, total interest-bearing deposits were $2.22 billion, compared to $2.09 billion at June 30, 2025. At September 30, 2025, total brokered time deposits were maintained at $3.8 million. The Company offers the Insured Cash Sweep (ICS) product and Certificate of Deposit Account Registry Service (CDARS), each of which provides reciprocal deposit placement services to fully qualified large customer deposits for FDIC insurance among other participating banks. Total reciprocal deposits were $770.3 million, or 22.3% of total deposits at September 30, 2025, compared to $730.6 million, or 22.1% of total deposits at June 30, 2025. Federal Home Loan Bank (“FHLB”) and Liquidity At September 30, 2025 and June 30, 2025, the Company had no FHLB or Federal Reserve Discount Window borrowings. At September 30, 2025, the Company had available borrowing capacity from an FHLB secured line of credit of approximately $750.4 million and available borrowing capacity from the Federal Reserve Discount Window of approximately $347.8 million. The Company also had available borrowing capacity from four unsecured credit lines from correspondent banks of approximately $90.5 million at September 30, 2025, with no outstanding borrowings. Total available borrowing capacity was $1.19 billion at September 30, 2025. Additionally, the Company had unpledged liquid securities at fair value of approximately $191.3 million and cash and cash equivalents of $559.2 million at September 30, 2025. Total borrowings decreased $19.4 million to $33.4 million at September 30, 2025. During the third quarter of 2025, the Company redeemed all $20.0 million of its 5.00% fixed-to-floating rate subordinated notes due in September 30, 2030 at par value. Starting in October 2025, the interest rate on these subordinated notes was due to change to a quarterly variable rate equal to the then current 90-day SOFR plus 4.88%, through the original maturity date on September 30, 2030. Asset Quality Total non-performing assets decreased to $15.6 million, or 0.38% of total assets at September 30, 2025, compared with $18.4 million, or 0.46% of total assets at June 30, 2025. Total non-performing loans decreased to $15.6 million, or 0.52% of total loans held for investment at September 30, 2025, compared with $18.4 million, or 0.61% of total loans held for investment at June 30, 2025. The decrease in total non-performing loans was primarily due to a repayment of a nonaccrual purchased credit-deteriorated loan of $1.8 million and paydowns totaling $1.2 million, partially offset by a downgrade of a commercial and industrial loan of $39 thousand during the third quarter of 2025. Special mention loans increased by $33.2 million during the third quarter of 2025 to $98.4 million at September 30, 2025. The increase in the special mention loans was due mostly to $37.8 million in loans downgraded from a pass rating and $404 thousand in net advances, partially offset by $3.5 million in payoffs and $1.5 million in loans downgraded to substandard. Substandard loans increased by $3.2 million during the third quarter of 2025 to $84.7 million at September 30, 2025. The increase in the substandard loans was due primarily to $16.6 million in loans downgraded from pass rating and $1.5 million in loans downgraded from special mention rating, partially offset by $10.6 million in payoffs, $3.8 million in loans upgraded to a pass rating, $323 thousand in charge-offs and $210 thousand in net paydowns. During the third quarter of 2025, the Company downgraded a $16.0 million commercial and industrial loan that was originated in April 2022 to substandard accruing from pass rating. The loan is secured by an original note backed by a commercial real estate property and is supported, in part, by a limited 50% personal guarantee. The downgrade was due in part, to ongoing third-party litigation against the guarantor, who the Company believes to be affiliated with the Cantor Group V, LLC. The loan was current on its payment obligations as of September 30, 2025. In conjunction with the downgrade, the Company subsequently recorded an assignment of trust deed on the associated collateral, which includes a single commercial real estate property located in Oxnard, California. This property serves as collateral for the loan and is not part of a pooled loan structure. Following internal review and current information available to us, the Company believes this trust deed represents a senior secured lien position and anticipates full recovery of the loan balance. This loan was classified as individually evaluated and no reserve was recorded as of September 30, 2025. The Company had no loans that were over 90 days past due and still accruing interest at September 30, 2025 and June 30, 2025. Loan delinquencies (30-89 days past due, excluding nonaccrual loans) totaled $3.2 million at September 30, 2025, compared to $546 thousand in such loan delinquencies at June 30, 2025. The increase was primarily due to a $2.7 million 1-4 family residential loan that became delinquent during the third quarter of 2025. The allowance for credit losses, which is comprised of the ALL and reserve for unfunded loan commitments, totaled $43.6 million at September 30, 2025, compared to $43.6 million at June 30, 2025. The $54 thousand decrease in the allowance for credit losses included a $221 thousand provision for credit losses for the loan portfolio, partially offset by net charge-offs of $39 thousand and a $236 thousand reversal of provision for credit losses for unfunded loan commitments for the quarter ended September 30, 2025. The ALL was $41.3 million, or 1.38% of total loans held for investment at September 30, 2025, compared with $41.1 million, or 1.37% at June 30, 2025. Capital Tangible book value per common share (non-GAAP1) at September 30, 2025 was $13.39, compared with $12.82 at June 30, 2025. In the third quarter of 2025, tangible book value was primarily impacted by net income of $15.7 million for the third quarter, stock-based compensation activity, the Company’s stock repurchase program activity, coupled with a decrease in net of tax unrealized losses on available-for-sale debt securities. Other comprehensive losses related to net of tax unrealized losses on available-for-sale debt securities decreased by $1.7 million to $2.1 million at September 30, 2025, from $3.7 million at June 30, 2025. The decrease in the net of tax unrealized losses on available-for-sale debt securities was attributable to non-credit related factors, including a decrease in bond prices at the long end of the yield curve and the general interest rate environment. Tangible common equity (non-GAAP1) as a percentage of total tangible assets (non-GAAP1) at September 30, 2025, increased to 10.94% from 10.89% in the prior quarter, and net of tax unrealized losses on available-for-sale debt securities as a percentage of tangible common equity (non-GAAP1) at September 30, 2025 decreased to 0.5% from 0.9% in the prior quarter. The Company’s preliminary capital ratios exceed the minimums required to be “well-capitalized” at September 30, 2025. Stock Repurchase Program During the third quarter of 2025, the Company repurchased 89,500 shares of its common stock at an average price of $15.22 and a total cost of $1.4 million under the stock repurchase program. The remaining maximum number of shares authorized to be repurchased under this program was 1,510,500 shares at September 30, 2025. ABOUT CALIFORNIA BANCORP California BanCorp (NASDAQ: BCAL) is a registered bank holding company headquartered in San Diego, California. California Bank of Commerce, N.A., a national banking association chartered under the laws of the United States (the “Bank”) and regulated by the Office of Comptroller of the Currency, is a wholly owned subsidiary of California BanCorp. Established in 2001 and headquartered in San Diego, California, the Bank offers a range of financial products and services to individuals, professionals, and small to medium-sized businesses through its 14 branch offices and four loan production offices serving Northern and Southern California. The Bank’s solutions-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with its clients. Additional information is available at www.californiabankofcommerce.com. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS In addition to historical information, this release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and other matters that are not historical facts. Examples of forward-looking statements include, among others, statements regarding expectations, plans or objectives for future operations, products or services, loan recoveries, projections, and expectations regarding the adequacy of reserves for credit losses, as well as forecasts relating to financial and operating results or other measures of economic performance. Forward-looking statements reflect management’s current view about future events and involve risks and uncertainties that may cause actual results to differ from those expressed in the forward-looking statement or historical results. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and often include the words or phrases such as “aim,” “can,” “may,” “could,” “predict,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “hope,” “intend,” “plan,” “potential,” “project,” “will likely result,” “continue,” “seek,” “shall,” “possible,” “projection,” “optimistic,” and “outlook,” and variations of these words and similar expressions. Factors that could cause or contribute to results differing from those in or implied in the forward-looking statements include but are not limited to the impact of bank failures or other adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks; changes in real estate markets and valuations; the impact on financial markets from geopolitical conflicts; inflation, interest rate, market and monetary fluctuations and general economic conditions, either nationally or locally in the areas in which the Company conducts business; increases in competitive pressures among financial institutions and businesses offering similar products and services; general credit risks related to lending, including changes in the value of real estate or other collateral, the financial condition of borrowers, the effectiveness of our underwriting practices and the risk of fraud; higher than anticipated defaults in the Company’s loan portfolio; changes in management’s estimate of the adequacy of the allowance for credit losses or the factors the Company uses to determine the allowance for credit losses; changes in demand for loans and other products and services offered by the Company; the costs and outcomes of litigation; legislative or regulatory changes or changes in accounting principles, policies or guidelines; and other risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) and other documents the Company may file with the SEC from time to time. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and other documents the Company files with the SEC from time to time. Any forward-looking statement made in this release is based only on information currently available to management and speaks only as of the date on which it is made. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements or to conform such forward-looking statements to actual results or to changes in its opinions or expectations, except as required by law. California BanCorp and Subsidiary Financial Highlights (Unaudited) California BanCorp and Subsidiary Balance Sheets (Unaudited) California BanCorp and Subsidiary Income Statements - Quarterly and Year-to-Date (Unaudited) California BanCorp and Subsidiary Average Balance Sheets and Yield Analysis (Unaudited) California BanCorp and Subsidiary Average Balance Sheets and Yield Analysis (Unaudited) California BanCorp and Subsidiary GAAP to Non-GAAP Reconciliation (Unaudited) The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: (1) adjusted net income (loss), (2) efficiency ratio, (3) adjusted efficiency ratio, (4) pre-tax pre-provision income, (5) adjusted pre-tax pre-provision income, (6) average tangible common equity, (7) adjusted return on average assets, (8) adjusted return on average equity, (9) return on average tangible common equity, (10) adjusted return on average tangible common equity, (11) tangible common equity, (12) tangible assets, (13) tangible common equity to tangible asset ratio, and (14) tangible book value per common share. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures.

San Diego, Calif., July 28, 2025 (GLOBE NEWSWIRE) -- California BanCorp (“us,” “we,” “our,” or the “Company”) (NASDAQ: BCAL), the holding company for California Bank of Commerce, N.A. (the “Bank”) announces its consolidated financial results for the second quarter of 2025. The Company reported net income of $14.1 million, or $0.43 per diluted share, for the second quarter of 2025, compared to $16.9 million, or $0.52 per diluted share for the first quarter of 2025, and net income of $190 thousand, or $0.01 per diluted share for the second quarter of 2024. “We are pleased to report strong second quarter earnings of $14.1 million, the third consecutive strong quarter of combined financial results since the close of our merger last July,” said David Rainer, Executive Chairman of the Company and Bank. “Earlier this year we announced a strategy to derisk our consolidated balance sheet by decreasing our exposure in the Sponsor Finance portfolio, reducing our reliance on brokered deposits and improving overall credit quality. I am pleased to report that the Sponsor Finance portfolio continued to decline in the second quarter and we expect the remainder will likely run off by year end. The reduction in credit risk in our total loan portfolio is reflected in a significant decrease in our non-performing assets to total assets ratio to 0.46% from 0.68%, as well as a significant decrease in special mention and substandard loans from the prior quarter. “During the second quarter we successfully completed the winding down of our brokered deposits. Going forward, we are focused on organic loan and deposit growth through our relationship-based business banking franchise and our footprint covering the biggest markets for small to medium-sized businesses in the state of California.” “Our strong second quarter results are further evidence of our successful integration and the value of our combined operations,” said Steven Shelton, CEO of the Company and Bank. “We continue to monitor the effect of tariffs and trade negotiations on our clients and can report we do not expect to see an impact on client operations from those events. We have minimal exposure to international trade, although some of our clients do source materials from outside the country. However, we have observed that some clients have expressed hesitancy in initiating projects due to the uncertain economic environment. Regardless, we continue to develop new relationships across the state of California, providing all our clients with the outstanding high-touch, relationship-based service associated with California Bank of Commerce.” Second Quarter 2025 Highlights Net income of $14.1 million or $0.43 diluted earnings per share for the second quarter. Net interest margin of 4.61%, compared with 4.65% in the prior quarter; average total loan yield of 6.58% compared with 6.61% in the prior quarter. Reversal of credit losses of $634 thousand for the second quarter, compared with $3.8 million for the prior quarter. Return on average assets of 1.45%, compared with 1.71% in the prior quarter. Return on average common equity of 10.50%, compared with 13.18% in the prior quarter. Efficiency ratio (non-GAAP1) of 56.1% compared with 55.6% in the prior quarter. Redemption of subordinated notes at par value aggregating $18.0 million. Tangible book value per common share (non-GAAP1) of $12.82 at June 30, 2025, up $0.53 from $12.29 at March 31, 2025. Total assets of $3.95 billion at June 30, 2025, compared with $3.98 billion at March 31, 2025. Total loans, including loans held for sale of $3.00 billion at June 30, 2025, compared with $3.07 billion at March 31, 2025. Nonperforming assets to total assets ratio of 0.46% at June 30, 2025, compared with 0.68% at March 31, 2025. Allowance for credit losses (“ACL”) was 1.46% of total loans held for investment at June 30, 2025; allowance for loan losses ("ALL") was 1.37% of total loans held for investment at June 30, 2025. Total deposits of $3.31 billion at June 30, 2025, decreased $30.2 million or 0.9% compared with $3.34 billion at March 31, 2025. Noninterest-bearing demand deposits of $1.22 billion at June 30, 2025, a decrease of $74.6 million or 5.8% from March 31, 2025; noninterest bearing deposits represented 36.8% of total deposits, compared with $1.29 billion, or 38.7% of total deposits at March 31, 2025. Cost of deposits was 1.59%, consistent with 1.59% in the prior quarter. Cost of funds was 1.73%, compared with 1.72% in the prior quarter. The Company’s preliminary capital ratios at June 30, 2025 exceed the minimums required to be “well-capitalized,” the highest regulatory capital category. Second Quarter Operating Results Net Income Net income for the second quarter of 2025 was $14.1 million, or $0.43 per diluted share, compared to $16.9 million, or $0.52 per diluted share in the first quarter of 2025. Pre-tax, pre-provision income (non-GAAP1) for the second quarter was $19.4 million, a decrease of $461 thousand from the prior quarter. The net income and diluted earnings per share decreases were largely driven by lower net interest income after reversal of credit losses, partially offset by higher noninterest income. Net Interest Income and Net Interest Margin Net interest income for the second quarter of 2025 was $41.4 million, compared with $42.3 million in the prior quarter. The decrease in net interest income was primarily due to a $1.0 million decrease in total interest and dividend income, partially offset by a $201 thousand decrease in total interest expense in the second quarter of 2025, as compared to the prior quarter. During the second quarter of 2025, loan interest income decreased by $1.6 million, including a decrease of $496 thousand of accretion income from the net purchase accounting discounts on acquired loans, partially offset by increases of $226 thousand in total debt securities income and $341 thousand in interest and dividend income from other financial institutions. The decrease in interest income was mainly due to decreases in average total loan balances. Average total interest-earning assets decreased $78.2 million in the second quarter of 2025, the result of a $117.4 million decrease in average total loans and a $21.0 million decrease in average deposits in other financial institutions, partially offset by a $25.0 million increase in average total debt securities and a $35.2 million increase in average Fed funds sold/resale agreements. The decrease in interest expense for the second quarter of 2025 was primarily due to a $239 thousand decrease in interest expense on interest-bearing deposits, the result of a $26.4 million decrease in average interest-bearing deposits and a 4 basis point decrease in average interest-bearing deposit costs in the second quarter of 2025. Net interest margin for the second quarter of 2025 was 4.61%, compared with 4.65% in the prior quarter. The decrease was primarily related to a 5 basis point decrease in the total interest-earning assets yield, coupled with a 1 basis point increase in the cost of funds. The yield on total average interest-earning assets in the second quarter of 2025 was 6.21%, compared with 6.26% in the prior quarter. The yield on average total loans in the second quarter of 2025 was 6.58%, a decrease of 3 basis points from 6.61% in the prior quarter. Accretion income from the net purchase accounting discounts on acquired loans was $5.2 million, increasing the yield on average total loans by 69 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased the interest expense by $555 thousand, the combination of which increased the net interest margin by 51 basis points in the second quarter of 2025. In the prior quarter, accretion income from the net purchase accounting discounts on acquired loans was $5.7 million, increasing the yield on average total loans by 74 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased the interest expense by $526 thousand, the combination of which increased the net interest margin by 57 basis points. Cost of funds for the second quarter of 2025 was 1.73%, a slight increase of 1 basis point from 1.72% in the prior quarter. The increase was primarily driven by an increase of 47 basis points in the cost of total borrowings, which was driven mostly by the decrease in average total borrowings of $2.9 million from the redemption of the $18 million subordinated notes in June, coupled with higher borrowing expense related to those subordinated notes converting to a floating-rate during the second quarter of 2025 and up to redemption, partially offset by a 4 basis point decrease in the cost of average interest-bearing deposits. The amortization expense of $560 thousand from the purchase accounting discounts on acquired subordinated debt contributed 7 basis points to the cost on total borrowings. Average noninterest-bearing demand deposits decreased $76.1 million to $1.18 billion and represented 36.2% of total average deposits for the second quarter of 2025, compared with $1.26 billion and 37.4%, respectively, in the prior quarter; average interest-bearing deposits decreased $26.4 million to $2.08 billion during the second quarter of 2025. The total cost of deposits in the second quarter of 2025 was maintained at 1.59%,the same as the prior quarter. The cost of total interest-bearing deposits decreased 4 basis points primarily due to the Company’s ongoing strategy to pay off high cost brokered deposits and listing money market deposits in the second quarter of 2025. Average total borrowings decreased $2.9 million to $67.2 million in the second quarter of 2025, primarily due to the redemption of the $18 million subordinated notes in June 2025. The average cost of total borrowings was 8.53% for the second quarter of 2025, up from 8.06% in the prior quarter. Reversal of Credit Losses The Company recorded a reversal of credit losses of $634 thousand for the second quarter of 2025, compared to $3.8 million in the prior quarter. Total net charge-offs were $4.1 million in the second quarter of 2025, which consisted of $4.2 million of gross charge-offs, offset by $181 thousand of gross recoveries. The net charge-offs resulted from the Company’s continuing strategy to derisk the consolidated balance sheet by reducing our exposure to criticized loans. The reversal of credit losses in the second quarter of 2025 included a $29 thousand provision for credit losses for unfunded loan commitments related to the increase in unfunded loan commitments during the second quarter of 2025, partially offset by a decrease in average funding rates used to estimate the allowance for credit losses on unfunded commitments. Total unfunded loan commitments increased $9.1 million to $901.2 million at June 30, 2025, compared to $892.1 million in unfunded loan commitments at March 31, 2025. The reversal of credit losses for loans held for investment in the second quarter of 2025 was $663 thousand, a decrease of $2.5 million from a reversal of credit losses of $3.2 million in the prior quarter. The decrease was driven primarily by the decrease in the balance of loans held for investment, changes in the composition of the loans held for investment portfolio, and changes in qualitative factors, partially offset by the net charge-offs and changes in the reasonable and supportable forecast, primarily related to the economic outlook for California. The Company’s management continues to monitor macroeconomic variables related to changes in interest rates and the concerns of an economic downturn, and believes it has appropriately provisioned for the current environment. Noninterest Income The Company recorded noninterest income of $2.9 million in the second quarter of 2025, an increase of $290 thousand compared to $2.6 million in the first quarter of 2025. Other charges and fees increased $874 thousand in the second quarter due primarily to higher income from equity investments. There was no gain on sale of SBA 7A loans in the second quarter of 2025, compared to a gain on sale of loans from SBA 7A loan sales of $577 thousand in the prior quarter. Noninterest Expense Total noninterest expense for the second quarter of 2025 was $24.8 million, a slight decrease of $87 thousand from total noninterest expense of $24.9 million in the prior quarter. Salaries and employee benefits decreased $571 thousand during the second quarter of 2025 to $15.3 million. The decrease in salaries and employee benefits was primarily related to the decrease in payroll taxes, coupled with the increase in loan origination costs with increased loan origination activity. Regulatory assessments of $545 thousand decreased $177 thousand due to a decrease in the FDIC assessment rates in the second quarter of 2025. During the second quarter of 2025, the Company sold other real estate owned (“OREO”) and recognized a $862 thousand loss. There was no comparable transaction in the prior quarter. Efficiency ratio (non-GAAP1) for the second quarter of 2025 was 56.1%, compared to 55.6% in the prior quarter. The $862 thousand loss on sale of other real estate owned negatively impacted the efficiency ratio by 1.9% during the second quarter of 2025. Income Tax In the second quarter of 2025, the Company’s income tax expense was $6.0 million, compared with $6.8 million for the first quarter of 2025. The effective rate was 29.8% for the second quarter of 2025 and 28.8% for the first quarter of 2025. The increase in the effective tax rate for the second quarter of 2025 was primarily attributable to the vesting and exercise of equity awards combined with changes in the Company's stock price over time. Balance Sheet Assets Total assets at June 30, 2025 were $3.95 billion, a decrease of $29.4 million or 0.7% from March 31, 2025. The decrease in total assets from the prior quarter was primarily related to a decrease in loans, including loans held for sale, of $75.8 million, a decrease in cash and cash equivalents of $9.1 million and a decrease in OREO of $4.1 million, partially offset by an increase in available-for-sale debt securities of $56.6 million and a decrease in the allowance for credit losses on loans of $4.7 million, as compared to the prior quarter. Loans Total loans held for investment were $2.99 billion at June 30, 2025, a decrease of $77.2 million, compared to March 31, 2025. During the second quarter of 2025, there were new originations of $106.4 million, partially offset by net paydowns of $45.8 million, loan payoffs of $133.7 million, and charge-offs of loans in the amount of $4.2 million. Total loans secured by real estate decreased by $11.8 million, of which construction and land development loans decreased by $36.7 million and 1-4 family residential loans decreased by $17.6 million, partially offset by increases in other commercial real estate loans of $22.0 million and multifamily loans of $20.5 million. Commercial and industrial loans decreased by $64.6 million, and other consumer loans decreased by $779 thousand. The Company had $6.1 million in loans held for sale at June 30, 2025, compared to $4.6 million at March 31, 2025. Deposits Total deposits at June 30, 2025 were $3.31 billion, a decrease of $30.2 million from March 31, 2025. The decrease primarily consisted of decreases of $10.0 million of brokered time deposits and $74.6 million of noninterest-bearing demand deposits, partially offset by increases of $62.5 million in interest-bearing non-maturity deposits and $8.1 million of non-brokered time deposits. Noninterest-bearing demand deposits at June 30, 2025, were $1.22 billion, or 36.8% of total deposits, compared with $1.29 billion, or 38.7% of total deposits at March 31, 2025. At June 30, 2025, total interest-bearing deposits were $2.09 billion, compared to $2.05 billion at March 31, 2025. At June 30, 2025, total brokered time deposits were $3.8 million, compared to $13.8 million at March 31, 2025. The Company offers the Insured Cash Sweep (ICS) product, Certificate of Deposit Account Registry Service (CDARS), and Reich & Tang Deposit Solutions (R&T) network, all of which provide reciprocal deposit placement services to fully qualified large customer deposits for FDIC insurance among other participating banks. Total reciprocal deposits were $730.6 million, or 22.1% of total deposits at June 30, 2025, compared to $763.6 million, or 22.8% of total deposits at March 31, 2025. Federal Home Loan Bank ("FHLB") and Liquidity At June 30, 2025 and March 31, 2025, the Company had no FHLB borrowings. There were no outstanding Federal Reserve Discount Window borrowings at June 30, 2025 or March 31, 2025. At June 30, 2025, the Company had available borrowing capacity from an FHLB secured line of credit of approximately $682.6 million and available borrowing capacity from the Federal Reserve Discount Window of approximately $320.4 million. The Company also had available borrowing capacity from four unsecured credit lines from correspondent banks of approximately $90.5 million at June 30, 2025, with no outstanding borrowings. Total available borrowing capacity was $1.09 billion at June 30, 2025. Additionally, the Company had unpledged liquid securities at fair value of approximately $169.9 million and cash and cash equivalents of $430.1 million at June 30, 2025. Total borrowings decreased $17.4 million to $52.9 million June 30, 2025. During the second quarter of 2025, the Company redeemed all $18.0 million of its 5.50% fixed-to-floating rate subordinated notes due in 2030 at par value. Asset Quality Total non-performing assets decreased to $18.4 million, or 0.46% of total assets at June 30, 2025, compared with $26.9 million, or 0.68% of total assets at March 31, 2025. Total non-performing loans decreased to $18.4 million, or 0.61% of total loans held for investment at June 30, 2025, compared with $22.8 million, or 0.74% of total loans held for investment at March 31, 2025. There were two loans repayments at discount totaling $4.4 million, which included a $635 thousand charge-off. No loans were downgraded to nonaccrual during the second quarter of 2025. At March 31, 2025, non-performing assets included OREO, net of $4.1 million which was sold in the second quarter of 2025, resulting in an $862 thousand loss. Special mention loans decreased by $9.2 million during the second quarter of 2025 to $65.3 million at June 30, 2025. The decrease in the special mention loans was due mostly to $10.1 million in loans upgraded to a pass rating and $5.1 million in payoffs and $256 thousand in net paydowns, partially offset by $6.3 million in loans downgraded from a pass rating. Substandard loans decreased by $30.3 million during the second quarter of 2025 to $81.5 million at June 30, 2025. The decrease in the substandard loans was due primarily to $26.9 million in payoffs, $4.4 million in charge-offs and $698 thousand in loans upgraded to a pass rating, partially offset by $1.6 million in net advances and $115 thousand in loans downgraded from a pass rating. The Company had no loans that were over 90 days past due and still accruing interest at June 30, 2025, compared to $45 thousand in such delinquencies at March 31, 2025. There were $546 thousand in loan delinquencies (30-89 days past due, excluding nonaccrual loans) at June 30, 2025, compared to $5.1 million in such loan delinquencies at March 31, 2025. The decrease was due primarily to a commercial real estate loan of $4.2 million that was paid off in the second quarter of 2025. The allowance for credit losses, which is comprised of the allowance for loan losses ("ALL") and reserve for unfunded loan commitments, totaled $43.6 million at June 30, 2025, compared to $48.3 million at March 31, 2025. The decrease in the allowance for credit losses included a $663 thousand reversal of provision for credit losses for the loan portfolio and net charge-offs of $4.1 million, partially offset by a $29 thousand provision for credit losses for unfunded loan commitments for the quarter ended June 30, 2025. The ALL was $41.1 million, or 1.37% of total loans held for investment at June 30, 2025, compared with $45.8 million, or 1.49% at March 31, 2025. Capital Tangible book value per common share (non-GAAP1) at June 30, 2025, was $12.82, compared with $12.29 at March 31, 2025. In the second quarter of 2025, tangible book value was primarily impacted by net income of $14.1 million for the second quarter, stock-based compensation activity, coupled with a decrease in net of tax unrealized losses on available-for-sale debt securities. Other comprehensive losses related to unrealized losses, net of taxes, on available-for-sale debt securities decreased by $679 thousand to $3.7 million at June 30, 2025, from $4.4 million at March 31, 2025. The decrease in the net of tax unrealized losses on available-for-sale debt securities was attributable to non-credit related factors, including an increase in bond prices at the long end of the yield curve and the general interest rate environment. Tangible common equity (non-GAAP1) as a percentage of total tangible assets (non-GAAP1) at June 30, 2025, increased to 10.89% from 10.34% in the prior quarter, and unrealized losses, net of taxes, on available-for-sale debt securities as a percentage of tangible common equity (non-GAAP1) at June 30, 2025 decreased to 0.9% from 1.1% in the prior quarter. The Company’s preliminary capital ratios exceed the minimums required to be “well-capitalized” at June 30, 2025. ABOUT CALIFORNIA BANCORP California BanCorp (NASDAQ: BCAL) is a registered bank holding company headquartered in San Diego, California. California Bank of Commerce, N.A., a national banking association chartered under the laws of the United States (the “Bank”) and regulated by the Office of Comptroller of the Currency, is a wholly owned subsidiary of California BanCorp. Established in 2001 and headquartered in San Diego, California, the Bank offers a range of financial products and services to individuals, professionals, and small to medium-sized businesses through its 14 branch offices and four loan production offices serving Northern and Southern California. The Bank’s solutions-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with its clients. Additional information is available at www.bankcbc.com. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS In addition to historical information, this release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and other matters that are not historical facts. Examples of forward-looking statements include, among others, statements regarding expectations, plans or objectives for future operations, products or services, loan recoveries, projections, and expectations regarding the adequacy of reserves for credit losses, as well as forecasts relating to financial and operating results or other measures of economic performance. Forward-looking statements reflect management’s current view about future events and involve risks and uncertainties that may cause actual results to differ from those expressed in the forward-looking statement or historical results. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and often include the words or phrases such as “aim,” “can,” “may,” “could,” “predict,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “hope,” “intend,” “plan,” “potential,” “project,” “will likely result,” “continue,” “seek,” “shall,” “possible,” “projection,” “optimistic,” and “outlook,” and variations of these words and similar expressions. Factors that could cause or contribute to results differing from those in or implied in the forward-looking statements include but are not limited to the impact of bank failures or other adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks, changes in real estate markets and valuations; the impact on financial markets from geopolitical conflicts; inflation, interest rate, market and monetary fluctuations and general economic conditions, either nationally or locally in the areas in which the Company conducts business; increases in competitive pressures among financial institutions and businesses offering similar products and services; general credit risks related to lending, including changes in the value of real estate or other collateral, the financial condition of borrowers, the effectiveness of our underwriting practices and the risk of fraud; higher than anticipated defaults in the Company’s loan portfolio; changes in management’s estimate of the adequacy of the allowance for credit losses or the factors the Company uses to determine the allowance for credit losses; changes in demand for loans and other products and services offered by the Company; the costs and outcomes of litigation; legislative or regulatory changes or changes in accounting principles, policies or guidelines and other risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) and other documents the Company may file with the SEC from time to time. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and other documents the Company files with the SEC from time to time. Any forward-looking statement made in this release is based only on information currently available to management and speaks only as of the date on which it is made. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements or to conform such forward-looking statements to actual results or to changes in its opinions or expectations, except as required by law. California BanCorp and Subsidiary Financial Highlights (Unaudited) (1) Non-GAAP measure. See – GAAP to Non-GAAP reconciliation. (1) Included in "Accrued interest and other liabilities" on the consolidated balance sheets. California BanCorp and Subsidiary Balance Sheets (Unaudited) California BanCorp and Subsidiary Income Statements - Quarterly and Year-to-Date (Unaudited) (1) Included provision for (reversal of) credit losses on unfunded loan commitments of $29 thousand, $(618) thousand and $(97) thousand for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively; and $(589) thousand and $(114) thousand for the six months ended June 30, 2025 and June 30, 2024, respectively. (2) Non-GAAP measure. See — GAAP to Non-GAAP reconciliation. California BanCorp and Subsidiary Average Balance Sheets and Yield Analysis (Unaudited) (1) Tax-exempt debt securities yields are presented on a tax equivalent basis using a 21% tax rate. (2) Average noninterest-bearing deposits represent 36.21%, 37.37% and 34.05% of average total deposits for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively. California BanCorp and Subsidiary Average Balance Sheets and Yield Analysis (Unaudited) (1) Tax-exempt debt securities yields are presented on a tax equivalent basis using a 21% tax rate. (2) Average noninterest-bearing deposits represent 36.80%, and 34.20% of average total deposits for the six months ended June 30, 2025 and June 30, 2024, respectively. California BanCorp and Subsidiary GAAP to Non-GAAP Reconciliation (Unaudited) The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: (1) adjusted net income (loss), (2) efficiency ratio, (3) adjusted efficiency ratio, (4) pre-tax pre-provision income, (5) adjusted pre-tax pre-provision income, (6) average tangible common equity, (7) adjusted return on average assets, (8) adjusted return on average equity, (9) return on average tangible common equity, (10) adjusted return on average tangible common equity, (11) tangible common equity, (12) tangible assets, (13) tangible common equity to tangible asset ratio, and (14) tangible book value per common share. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures. INVESTOR RELATIONS CONTACT Kevin Mc Cabe California Bank of Commerce, N.A. [email protected] 818.637.7065 1 Reconciliations of non–U.S. generally accepted accounting principles (“GAAP”) measures are set forth at the end of this press release.

The United States market has shown positive momentum with a 2.7% increase over the last week and a 9.6% rise over the past year, while earnings are projected to grow by 14% annually. In this environment, growth companies with high insider ownership can be appealing as they often indicate strong confidence from those closest to the business in its potential for continued success. Click here to see the full list of 200 stocks from our Fast Growing US Companies With High Insider Ownership screener. Let's take a closer look at a couple of our picks from the screened companies. Simply Wall St Growth Rating: ★★★★☆☆ Overview: California BanCorp operates as the bank holding company for California Bank of Commerce, N.A., with a market cap of $452.33 million. Operations: The company generates revenue primarily through its Commercial Banking segment, which accounts for $132.05 million. Insider Ownership: 17% Earnings Growth Forecast: 48.3% p.a. California BanCorp's earnings are forecast to grow significantly at 48.3% per year, outpacing the US market's 14.2%. The company trades at a discount of 13.9% below its estimated fair value, with analysts predicting a potential price rise of 26.5%. Recent earnings showed substantial improvement, with net income rising to US$16.85 million from US$4.94 million year-over-year, despite lower profit margins and no recent insider trading activity reported over three months. Get an in-depth perspective on California BanCorp's performance by reading our analyst estimates report here. In light of our recent valuation report, it seems possible that California BanCorp is trading beyond its estimated value. Simply Wall St Growth Rating: ★★★★☆☆ Overview: Burke & Herbert Financial Services Corp. is the bank holding company for Burke & Herbert Bank & Trust Company, offering a range of community banking products and services in Virginia and Maryland, with a market cap of $840.76 million. Operations: The company generates revenue of $288.48 million from its community banking products and services in Virginia and Maryland. Insider Ownership: 13.1% Earnings Growth Forecast: 35.1% p.a. Burke & Herbert Financial Services is experiencing significant earnings growth, forecasted at 35.1% annually, surpassing the US market's average. Despite past shareholder dilution, insider buying has been substantial recently. The company trades at a notable discount to its estimated fair value and announced a $50 million share repurchase program. First-quarter results showed net income rising from US$5.21 million to US$27.2 million year-over-year, alongside consistent dividend payments and strategic leadership changes strengthening its financial oversight team. Take a closer look at Burke & Herbert Financial Services' potential here in our earnings growth report. Our expertly prepared valuation report Burke & Herbert Financial Services implies its share price may be lower than expected. Simply Wall St Growth Rating: ★★★★☆☆ Overview: Red Violet, Inc. is an analytics and information solutions company that focuses on proprietary technologies to provide identity intelligence in the United States, with a market cap of $548.07 million. Operations: The company's revenue is derived from its data processing segment, amounting to $75.19 million. Insider Ownership: 15.2% Earnings Growth Forecast: 22.1% p.a. Red Violet's earnings are expected to grow significantly at 22.1% annually, outpacing the US market average. Despite a decrease in net income from US$13.53 million to US$7 million over the past year, revenue increased from US$60.2 million to US$75.19 million. The company recently appointed Greg Strakosch to its board, enhancing strategic leadership with his extensive capital markets experience, while insider activity showed significant selling over the last three months without substantial buying. Unlock comprehensive insights into our analysis of Red Violet stock in this growth report. According our valuation report, there's an indication that Red Violet's share price might be on the expensive side. Unlock more gems! Our Fast Growing US Companies With High Insider Ownership screener has unearthed 197 more companies for you to explore.Click here to unveil our expertly curated list of 200 Fast Growing US Companies With High Insider Ownership. Interested In Other Possibilities? Outshine the giants: these 26 early-stage AI stocks could fund your retirement. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years. Companies discussed in this article include NasdaqCM:BCAL NasdaqCM:BHRB and NasdaqCM:RDVT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

San Diego, Calif., April 24, 2025 (GLOBE NEWSWIRE) -- California BanCorp (“us,” “we,” “our,” or the “Company”) (NASDAQ: BCAL), the holding company for California Bank of Commerce, N.A. (the “Bank”) announces its consolidated financial results for the first quarter of 2025. The Company reported net income of $16.9 million, or $0.52 per diluted share, for the first quarter of 2025, compared to $16.8 million, or $0.51 per diluted share for the fourth quarter of 2024, and net income of $4.9 million, or $0.26 per diluted share for the first quarter of 2024. “I’m pleased to report our strong first quarter earnings of $16.9 million, the second strong quarter of combined financial results since the close of our merger last July,” said David Rainer, Executive Chairman of the Company and Bank. “We continue to execute on our strategy of derisking the consolidated balance sheet through decreasing our exposure in the Sponsor Finance portfolio, and reducing our reliance on brokered deposits. We remain focused on building tangible book value, which increased to $12.29 per common share in the first quarter, up $0.58 from the prior quarter and $1.37 in the eight months since the merger closed.” “We continue with our successful integration, as demonstrated by the strong performance achieved in our first two quarters of combined operations,” said Steven Shelton, CEO of the Company and Bank. “Markets have been volatile lately with the recent changes in tariff policies and given the fluid dynamics of the situation we are reaching out to our clients to assess the potential impact of these changing policies on their businesses. As always, we continue to focus on providing them the highest level of outstanding service, and on building shareholder value.” First Quarter 2025 Highlights First Quarter Operating Results Net Income Net income for the first quarter of 2025 was $16.9 million, or $0.52 per diluted share, compared to $16.8 million, or $0.51 per diluted share in the fourth quarter of 2024. Pre-tax, pre-provision income (non-GAAP1) for the first quarter was $19.9 million, an increase of $481 thousand from the prior quarter. Excluding the merger and related expenses, the adjusted pre-tax, pre-provision income (non-GAAP1) for the first quarter was $19.9 million, a decrease of $162 thousand from the prior quarter. The net income and diluted earnings per share increases were largely driven by the merger with predecessor California BanCorp (the “Merger”) and the operating results since the closing date of the Merger. Net Interest Income and Net Interest Margin Net interest income for the first quarter of 2025 was $42.3 million, compared with $44.5 million in the prior quarter. The decrease in net interest income was primarily due to a $5.7 million decrease in total interest and dividend income, partially offset by a $3.4 million decrease in total interest expense in the first quarter of 2025, as compared to the prior quarter. During the first quarter of 2025, loan interest income decreased by $4.1 million, including a decrease of $421 thousand of accretion income from the net purchase accounting discounts on acquired loans, total debt securities income decreased $174 thousand, and interest and dividend income from other financial institutions decreased $1.5 million. The decrease in interest income was mainly due to decreases in average loan balances and average deposits in other financial institutions. Average total interest-earning assets decreased $160.8 million in the first quarter of 2025, the result of a $75.2 million decrease in average total loans, a $8.5 million decrease in average total debt securities, a $105.5 million decrease in average deposits in other financial institutions, partially offset by a $27.1 million increase in average Fed funds sold/resale agreements and a $1.3 million increase in average restricted stock investments and other bank stock. The decrease in interest expense for the first quarter of 2025 was primarily due to a $3.4 million decrease in interest expense on interest-bearing deposits, the result of a $151.1 million decrease in average interest-bearing deposits and a 39 basis point decrease in average interest-bearing deposit costs in the first quarter of 2025. Net interest margin for the first quarter of 2025 was 4.65%, compared with 4.61% in the prior quarter. The increase was primarily related to a 27 basis point decrease in the cost of funds, partially offset by a 22 basis point decrease in the total interest-earning assets yield. The yield on total average interest-earning assets in the first quarter of 2025 was 6.26%, compared with 6.48% in the prior quarter. The yield on average total loans in the first quarter of 2025 was 6.61%, a decrease of 23 basis points from 6.84% in the prior quarter. Accretion income from the net purchase accounting discounts on acquired loans was $5.7 million, increasing the yield on average total loans by 62 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased the interest expense by $526 thousand, the combination of which increased the net interest margin by 57 basis points in the first quarter of 2025. In the prior quarter, accretion income from the net purchase accounting discounts on acquired loans was $6.1 million, increasing the yield on average total loans by 76 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased the interest expense by $467 thousand, the combination of which increased the net interest margin by 58 basis points. Cost of funds for the first quarter of 2025 was 1.72%, a decrease of 27 basis points from 1.99% in the prior quarter. The decrease was primarily driven by a 39 basis point decrease in the cost of average interest-bearing deposits, partially offset by an increase of 9 basis points in the cost of total borrowings, which was driven primarily by the amortization expense of $559 thousand from the purchase accounting discounts on acquired subordinated debt which increased the cost on total borrowings by 7 basis points. Average noninterest-bearing demand deposits decreased $27.7 million to $1.26 billion and represented 37.4% of total average deposits for the first quarter of 2025, compared with $1.28 billion and 36.3%, respectively, in the prior quarter; average interest-bearing deposits decreased $151.1 million to $2.10 billion during the first quarter of 2025. The total cost of deposits in the first quarter of 2025 was 1.59%, a decrease of 28 basis points from 1.87% in the prior quarter. The cost of total interest-bearing deposits decreased primarily due to the Company’s deposit repricing strategy and the ongoing pay off of high cost brokered deposits in the first quarter of 2025. Average total borrowings increased $607 thousand to $70.0 million in the first quarter of 2025, primarily due to the amortization related to the purchase accounting discounts on acquired subordinated debt. The average cost of total borrowings was 8.06% for the first quarter of 2025, up from 7.97% in the prior quarter. Reversal of Credit Losses The Company recorded a reversal of credit losses of $3.8 million in both the first quarter of 2025 and the prior quarter. Total net charge-offs were $1.5 million in the first quarter of 2025, which included $273 thousand from an acquired consumer solar loan portfolio, $1.2 million from commercial and industrial dental loans acquired from the Merger and $1.7 million from a purchase credit deteriorated (“PCD”) commercial real-estate loan, partially offset by a $1.6 million recovery from a PCD commercial and industrial loan. The reversal of credit losses in the first quarter of 2025 included a $618 thousand reversal of credit losses for unfunded loan commitments related to the decrease in unfunded loan commitments during the first quarter of 2025, coupled with lower loss rates used to estimate the allowance for credit losses on unfunded commitments. Total unfunded loan commitments decreased $33.2 million to $892.1 million at March 31, 2025, compared to $925.3 million in unfunded loan commitments at December 31, 2024. The reversal of credit losses for loans held for investment in the first quarter of 2025 was $3.2 million, an increase of $291 thousand from a reversal of credit losses of $2.9 million in the prior quarter. The increase was driven primarily by changes in the composition of the loans held for investment portfolio, coupled with changes in qualitative factors and the reasonable and supportable forecast, primarily related to the economic outlook for California. The Company’s management continues to monitor macroeconomic variables related to changes in interest rates and the concerns of an economic downturn, and believes it has appropriately provisioned for the current environment. Noninterest Income The Company recorded noninterest income of $2.6 million in the first quarter of 2025, an increase of $1.6 million compared to $1.0 million in the fourth quarter of 2024. The Company reported a gain on sale of loans of $577 thousand from SBA 7A loan sales, in the first quarter of 2025, compared to a loss on sale of loans of $1.1 million related to the sale of certain Sponsor Finance loans in the prior quarter. Service charges and fees on deposit accounts of $1.2 million in the first quarter of 2025 increased $275 thousand from the prior quarter, related to the one-time waiver of analysis charges for certain deposit accounts in light of the core system conversion in the prior quarter. Bank owned life insurance income of $463 thousand in the first quarter of 2025 decreased $360 thousand from the prior quarter, primarily related to a $368 thousand death benefit income recorded in the prior quarter. No comparable death benefit income was recorded in the first quarter of 2025. Noninterest Expense Total noninterest expense for the first quarter of 2025 was $24.9 million, a decrease of $1.2 million from total noninterest expense of $26.1 million in the prior quarter, which was largely due to the decrease in merger related expenses. Salaries and employee benefits decreased $210 thousand during the quarter to $15.9 million. The decrease in salaries and employee benefits was primarily related to the decrease in average headcount. There were no merger related expenses in the first quarter of 2025, compared to $643 thousand in the prior quarter. Regulatory assessments of $722 thousand increased $286 thousand due to an increase in the FDIC assessment rates. Other real estate owned expense of $68 thousand in the first quarter of 2025 decreased by $152 thousand, due primarily to lower receivership expenses and property tax. Other expenses of $2.0 million in the first quarter of 2025 decreased by $175 thousand, due primarily to lower loan related expenses, customer service related expenses, travel expenses and insurance expenses. Efficiency ratio (non-GAAP1) for the first quarter of 2025 was 55.6%, compared to 57.4% in the prior quarter. Excluding the merger and related expenses of zero and $643 thousand, the efficiency ratio (non-GAAP1) for the first quarter of 2025 and fourth quarter of 2024 would have been 55.6% and 55.9%, respectively. Income Tax In the first quarter of 2025, the Company’s income tax expense was $6.8 million, compared with $6.5 million in the fourth quarter of 2024. The effective rate was 28.8% for the first quarter of 2025 and 27.9% for the fourth quarter of 2024. The increase in the effective tax rate for the first quarter of 2025 was primarily attributable to the impact of the non-tax deductible portion of the merger expenses and the vesting and exercise of equity awards combined with changes in the Company’s stock price over time, partially offset by the impact of the tax on the excess executive compensation. Balance Sheet Assets Total assets at March 31, 2025 were $3.98 billion, a decrease of $48.6 million or 1.2% from December 31, 2024. The decrease in total assets from the prior quarter was primarily related to a decrease in loans, including loans held for sale, of $82.9 million, partially offset by an increase in cash and cash equivalents of $51.1 million as compared to the prior quarter. The decrease in assets primarily relates to the decreases in wholesale funding sources and loan sales and payoffs. Loans Total loans held for investment were $3.07 billion at March 31, 2025, a decrease of $70.4 million, compared to December 31, 2024. During the first quarter of 2025, there were new originations of $69.4 million, offset by net paydowns of $21.5 million, loan sales and payoffs of $115.1 million, and the partial charge-offs of loans in the amount of $3.2 million. Total loans secured by real estate decreased by $30.7 million, of which construction and land development loans decreased by $5.9 million, commercial real estate and other loans decreased by $11.8 million, 1-4 family residential loans decreased by $7.0 million and multifamily loans decreased by $6.1 million. Commercial and industrial loans decreased by $38.5 million, and consumer loans decreased by $1.2 million. The Company had $4.6 million in loans held for sale at March 31, 2025, compared to $17.2 million at December 31, 2024. Deposits Total deposits at March 31, 2025 were $3.34 billion, a decrease of $56.3 million from December 31, 2024. The decrease primarily consisted of $107.4 million of brokered time deposits, partially offset by a $35.7 million increase in noninterest-bearing demand deposits, $10.9 million in interest-bearing non-maturity deposits, and $4.5 million of non-brokered time deposits. Noninterest-bearing demand deposits at March 31, 2025, were $1.29 billion, or 38.7% of total deposits, compared with $1.26 billion, or 37.0% of total deposits at December 31, 2024. At March 31, 2025, total interest-bearing deposits were $2.05 billion, compared to $2.14 billion at December 31, 2024. At March 31, 2025, total brokered time deposits were $13.8 million, compared to $121.1 million at December 31, 2024. The Company offers the Insured Cash Sweep (ICS) product, Certificate of Deposit Account Registry Service (CDARS), and Reich & Tang Deposit Solutions (R&T) network, all of which provide reciprocal deposit placement services to fully qualified large customer deposits for FDIC insurance among other participating banks. At March 31, 2025, total reciprocal deposits were $763.6 million, or 22.8% of total deposits at March 31, 2025, compared to $754.4 million, or 22.2% of total deposits at December 31, 2024. Federal Home Loan Bank (“FHLB”) and Liquidity At March 31, 2025 and December 31, 2024, the Company had no overnight FHLB borrowings. There were no outstanding Federal Reserve Discount Window borrowings at March 31, 2025 or December 31, 2024. At March 31, 2025, the Company had available borrowing capacity from an FHLB secured line of credit of approximately $687.8 million and available borrowing capacity from the Federal Reserve Discount Window of approximately $353.0 million. The Company also had available borrowing capacity from four unsecured credit lines from correspondent banks of approximately $90.5 million at March 31, 2025, with no outstanding borrowings. Total available borrowing capacity was $1.13 billion at March 31, 2025. Additionally, the Company had unpledged liquid securities at fair value of approximately $118.5 million and cash and cash equivalents of $439.2 million at March 31, 2025. Asset Quality Total non-performing assets decreased to $26.9 million, or 0.68% of total assets at March 31, 2025, compared with $30.6 million, or 0.76% of total assets at December 31, 2024. Total non-performing loans decreased to $22.8 million, or 0.74% of total loans held for investment at March 31, 2025, compared with $26.5 million, or 0.85% of total loans held for investment at December 31, 2024. There were four loans totaling $6.8 million downgraded to nonaccrual, partially offset by one 1-4 family residential loan of $2.9 million upgraded to accrual status and one commercial real estate loan of $7.2 million sold with an additional charge-off of $1.7 million during the first quarter of 2025. Non-performing assets in the first quarter of 2025 included OREO, net of valuation allowance, of $4.1 million related to a multifamily building, the same balance as the prior quarter. Special mention loans increased by $5.1 million during the first quarter of 2025 to $74.4 million at March 31, 2025. The increase in the special mention loans was due mostly to $18.9 million in downgrades from Pass loans and $8.6 million in net advances, partially offset by $15.9 million in downgrades to substandard loans, $2.1 million upgrades to Pass loans, and $4.5 million in payoffs. Substandard loans decreased by $5.8 million during the first quarter of 2025 to $111.8 million at March 31, 2025. The decrease in the substandard loans was due primarily to a 1-4 family residential loan and a commercial real estate nonaccrual PCD loan totaling $11.6 million that were both sold, $16.0 million in paydowns and payoffs, and $1.2 million in net charge-offs, partially offset by $7.2 million in downgrades from Pass loans, and $15.9 million in downgrades from special mention loans. The Company had $45 thousand in consumer solar loans that were over 90 days past due and still accruing interest at March 31, 2025, compared to $150 thousand in such delinquencies at December 31, 2024. There were $5.1 million in loan delinquencies (30-89 days past due, excluding nonaccrual loans) at March 31, 2025, compared to $12.1 million in such loan delinquencies at December 31, 2024. The allowance for credit losses, which is comprised of the allowance for loan losses (“ALL”) and reserve for unfunded loan commitments, totaled $48.3 million at March 31, 2025, compared to $53.6 million at December 31, 2024. The decrease in the allowance for credit losses included a $3.2 million and $618 thousand reversal of provision for credit losses for the loan portfolio and reserve for unfunded loan commitments, respectively, coupled with total net charge-offs of $1.5 million for the quarter ended March 31, 2025. The ALL was $45.8 million, or 1.49% of total loans held for investment at March 31, 2025, compared with $50.5 million, or 1.61% at December 31, 2024. Capital Tangible book value per common share (non-GAAP1) at March 31, 2025, was $12.29, compared with $11.71 at December 31, 2024. In the first quarter of 2025, tangible book value was primarily impacted by net income of $16.9 million for the first quarter, stock-based compensation expense, coupled with a decrease in net of tax unrealized losses on available-for-sale debt securities. Other comprehensive losses related to unrealized losses, net of taxes, on available-for-sale debt securities decreased by $2.2 million to $4.4 million at March 31, 2025, from $6.6 million at December 31, 2024. The decrease in the net of tax unrealized losses on available-for-sale debt securities was attributable to non-credit related factors, including an increase in bond prices at the long end of the yield curve and the general interest rate environment. Tangible common equity (non-GAAP1) as a percentage of total tangible assets (non-GAAP1) at March 31, 2025, increased to 10.34% from 9.69% in the prior quarter, and unrealized losses, net of taxes, on available-for-sale debt securities as a percentage of tangible common equity (non-GAAP1) at March 31, 2025 decreased to 1.1% from 1.8% in the prior quarter. The Company’s preliminary capital ratios exceed the minimums required to be “well-capitalized” at March 31, 2025. ABOUT CALIFORNIA BANCORP California BanCorp (NASDAQ: BCAL) is a registered bank holding company headquartered in San Diego, California. California Bank of Commerce, N.A., a national banking association chartered under the laws of the United States (the “Bank”) and regulated by the Office of Comptroller of the Currency, is a wholly owned subsidiary of California BanCorp. Established in 2001 and headquartered in San Diego, California, the Bank offers a range of financial products and services to individuals, professionals, and small to medium-sized businesses through its 14 branch offices and four loan production offices serving Northern and Southern California. The Bank’s solutions-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with its clients. Additional information is available at www.bankcbc.com. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS In addition to historical information, this release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and other matters that are not historical facts. Examples of forward-looking statements include, among others, statements regarding expectations, plans or objectives for future operations, products or services, loan recoveries, projections, expectations regarding the adequacy of reserves for credit losses and statements about the benefits of the Merger, as well as forecasts relating to financial and operating results or other measures of economic performance. Forward-looking statements reflect management’s current view about future events and involve risks and uncertainties that may cause actual results to differ from those expressed in the forward-looking statement or historical results. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and often include the words or phrases such as “aim,” “can,” “may,” “could,” “predict,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “hope,” “intend,” “plan,” “potential,” “project,” “will likely result,” “continue,” “seek,” “shall,” “possible,” “projection,” “optimistic,” and “outlook,” and variations of these words and similar expressions. Factors that could cause or contribute to results differing from those in or implied in the forward-looking statements include but are not limited to risks related to the Merger, including the risks that cost savings may be less than anticipated, and difficulties in retaining senior management, employees or customers, the impact of bank failures or other adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks, changes in real estate markets and valuations; the impact on financial markets from geopolitical conflicts; inflation, interest rate, market and monetary fluctuations and general economic conditions, either nationally or locally in the areas in which the Company conducts business; increases in competitive pressures among financial institutions and businesses offering similar products and services; general credit risks related to lending, including changes in the value of real estate or other collateral, the financial condition of borrowers, the effectiveness of our underwriting practices and the risk of fraud; higher than anticipated defaults in the Company’s loan portfolio; changes in management’s estimate of the adequacy of the allowance for credit losses or the factors the Company uses to determine the allowance for credit losses; changes in demand for loans and other products and services offered by the Company; the costs and outcomes of litigation; legislative or regulatory changes or changes in accounting principles, policies or guidelines and other risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) and other documents the Company may file with the SEC from time to time. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and other documents the Company files with the SEC from time to time. Any forward-looking statement made in this release is based only on information currently available to management and speaks only as of the date on which it is made. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements or to conform such forward-looking statements to actual results or to changes in its opinions or expectations, except as required by law. California BanCorp and SubsidiaryFinancial Highlights (Unaudited) (1) Non-GAAP measure. See – GAAP to Non-GAAP reconciliation. (1) Included in “Accrued interest and other liabilities” on the consolidated balance sheet. California BanCorp and SubsidiaryBalance Sheets (Unaudited) California BanCorp and SubsidiaryIncome Statements - Quarterly and Year-to-Date (Unaudited) (1) Included reversal of credit losses on unfunded loan commitments of $618 thousand, $968.0 thousand and $17 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.(2) Non-GAAP measure. See — GAAP to Non-GAAP reconciliation. California BanCorp and SubsidiaryAverage Balance Sheets and Yield Analysis(Unaudited) (1) Tax-exempt debt securities yields are presented on a tax equivalent basis using a 21% tax rate.(2) Average noninterest-bearing deposits represent 37.37%, 36.27% and 34.35% of average total deposits for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively. California BanCorp and SubsidiaryGAAP to Non-GAAP Reconciliation(Unaudited) The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: (1) adjusted net income (loss), (2) efficiency ratio, (3) adjusted efficiency ratio, (4) pre-tax pre-provision income, (5) adjusted pre-tax pre-provision income, (6) average tangible common equity, (7) adjusted return on average assets, (8) adjusted return on average equity, (9) return on average tangible common equity, (10) adjusted return on average tangible common equity, (11) tangible common equity, (12) tangible assets, (13) tangible common equity to tangible asset ratio, and (14) tangible book value per common share. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures. (1) After-tax merger and related expenses are presented using a 29.56% tax rate. INVESTOR RELATIONS CONTACTKevin Mc CabeCalifornia Bank of Commerce, [email protected] 818.637.7065