GlobeNewswire Inc | Apr 30, 2021 08:00AM EDT

April 30, 2021

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

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

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

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

Financial Highlights:

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

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

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

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

Business Impact of COVID-19:

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

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

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

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

Net Interest Income and Margin:

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

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

Non-Interest Income:

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

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

Non-Interest Expense:

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

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

Balance Sheet:

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

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

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

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

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

Asset Quality:

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

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

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

Capital Adequacy:

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

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

About California BanCorp:

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

Contacts:

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

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

Use of Non-GAAP Financial Information:

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

Forward-Looking Information:

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

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

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

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

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

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

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

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

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

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

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