Form 8-K - Current report

CALIFORNIA BANCORP

Date: October 26, 2023

/s/ THOMAS A. SA

Thomas A. Sa

President, Chief Financial Officer and Chief Operating Officer

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 26, 2023

CALIFORNIA BANCORP

(Exact name of registrant as specified in its charter)

California

001-39242

82-1751097

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification Number)


1300 Clay Street, Suite 500
Oakland, California		94612
(Address of Principal Executive Offices)		(Zip Code)

(510) 457-3737

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	CALB	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02

Results of Operations and Financial Condition

On October 26, 2023, California BanCorp (the “Company”) issued a press release setting forth its unaudited financial results for the quarter and nine months ended September 30, 2023. A copy of the Company’s press release is furnished as Exhibit 99.1 and is hereby incorporated by reference.

Item 7.01

Regulation FD Disclosure.

Over the upcoming weeks, members of management will be presenting to or conducting one-on-one meetings with investors, analysts or other third parties about the Company and its latest financial results. A copy of the presentation slides, updated with the Company’s financial results for the third quarter and nine months ended September 30, 2023, substantially in the form expected to be used in such presentations and meetings, is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

The information furnished under this Item 2.02 and Item 7.01 and the related Exhibits 99.1 and 99.2 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of the Company under the Securities Act of 1933, as amended (the “Securities Act”) or the Exchange Act, except as shall be set forth by specific reference in such filing.

Item 9.01

Financial Statements and Exhibits


Exhibit No.		Description

99.1		Press Release dated October 26, 2023

99.2		Investor Presentation dated September 30, 2023

104		Cover Page Interactive Date File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Exhibit 99.1

LOGO

California BanCorp Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2023

Oakland, CA – October 26, 2023 – California BanCorp (NASDAQ: CALB), whose subsidiary is California Bank of Commerce, announced today its financial results for the third quarter and nine months ended September 30, 2023.

The Company reported net income of $5.4 million for both the third and second quarters of 2023, compared to $5.5 million for the third quarter of 2022. For the nine months ended September 30, 2023, net income was $16.3 million representing an increase of $2.9 million, or 21%, compared to $13.4 million for the same period in 2022.

Diluted earnings per share were $0.64 for the third quarter of 2023, compared to $0.65 for the second quarter of 2023 and $0.66 for the third quarter of 2022. For the nine months ended September 30, 2023, diluted earnings per share were $1.93, compared to $1.60 for the same period in 2022.

“Our third quarter results reflect the strength of the franchise we have built, as we continued to deliver strong financial performance with our return on average assets remaining above 1% despite the challenging operating environment,” said Steven Shelton, Chief Executive Officer of California BanCorp. “We saw continued stability in our deposit base, net interest margin, and asset quality, along with disciplined expense control, which enabled us to generate earnings that were consistent with the prior quarter. As expected, given our conservative approach in the current environment, our balance sheet remained relatively flat with the prior quarter, although we continued to have success in adding new full banking relationships including operating deposit accounts and high quality commercial lending opportunities.

“Given the continued economic uncertainty, we will continue to maintain our conservative approach to new loan production. However, we believe the competitive environment remains favorable for us to continue adding new commercial deposit relationships and taking market share as we are seeing increasing opportunities to attract clients who are looking for a commercial bank with a strong balance sheet, robust treasury management solutions, and a superior level of service. Over the near-term, we expect to continue to generate a strong level of profitability while maintaining a high level of capital, liquidity, and reserves, and adding new full banking relationships that will contribute to our long-term profitable growth and further increasing the value of our franchise,” said Mr. Shelton.

Financial Highlights:

Profitability - three months ended September 30, 2023 compared to June 30, 2023

•

Net income of $5.4 million and $0.64 per diluted share, compared to $5.4 million and $0.65 per diluted share, respectively.

•

Revenue of $19.8 million increased $91,000, or 0%, compared to $19.8 million for the second quarter of 2023.

•

Net interest income of $18.6 million decreased $68,000, or 0%, compared to $18.6 million for the second quarter of 2023.

•

Provision for credit losses of $314,000 decreased $130,000, or 29%, from $444,000 for the second quarter of 2023.

•

Non-interest income of $1.3 million increased $159,000, or 14%, compared to $1.1 million for the second quarter of 2023.

•

Non-interest expense, excluding capitalized loan origination costs, of $12.5 million increased $222,000, or 2%, compared to $12.3 million for the second quarter of 2023.

Profitability - nine months ended September 30, 2023 compared to September 30, 2022

•

Net income of $16.3 million and $1.93 per diluted share, compared to $13.4 million and $1.60 per diluted share, respectively.

•

Revenue of $59.5 million increased $5.0 million, or 9%, compared to $54.5 million in the prior year.

•

Net interest income of $56.0 million increased $6.9 million, or 14%, compared to $49.1 million for the same period in the prior year.

•

Provision for credit losses of $1.1 million decreased $1.6 million, or 58%, from $2.7 million for the nine months ended September 30, 2022.

•

Non-interest income of $3.5 million decreased $1.9 million, or 35%, from $5.4 million for the same period in the prior year.

•

Non-interest expense, excluding capitalized loan origination costs, of $37.3 million decreased $1.2 million, or 3%, compared to $36.1 million for the nine months ended September 30, 2022.

Financial Position – September 30, 2023 compared to June 30, 2023

•

Total assets decreased by $21.7 million, or 1%, to $1.98 billion; average total assets increased by $9.3 million to $1.99 billion.

•

Total gross loans decreased by $10.5 million, or 1%, to $1.57 billion; average total gross loans decreased by $25.8 million to $1.55 billion.

•

Total deposits decreased by $31.2 million, or 2%, to $1.71 billion; average total deposits increased by $35.4 million to $1.72 billion.

•

Excluding junior subordinated debt securities, the Company had no other borrowings outstanding at September 30, 2023 and June 30, 2023.

•

Capital ratios remain healthy with a tier I leverage ratio of 9.27%, tier I capital ratio of 9.34% and total risk-based capital ratio of 13.00%.

•

Tangible book value per share of $21.76 increased by $0.67, or 3%.

Net Interest Income and Margin:

Net interest income for the quarters ended September 30, 2023 and June 30, 2023 was $18.6 million, compared to $18.4 million for the three months ended September 30, 2022. Net interest income for the nine months ended September 30, 2023 was $56.0 million, an increase of $6.9 million, or 14% over $49.1 million for the nine months ended September 30, 2022. The increase in net interest income was primarily attributable to an increase in interest income as the result of a more favorable mix of earning assets combined with higher yields on those assets.

The Company’s net interest margin for the third quarter of 2023 was 3.86%, compared to 3.93% for the second quarter of 2023 and 3.94% for the same period in 2022. The decrease in margin compared to the prior quarter was primarily due to an unfavorable shift in the mix of average interest earning assets combined with an increase in the cost of deposits. The decrease in margin from the same period last year was primarily the result of an increase in the cost of deposits, partially offset by a more favorable mix of earning assets with higher yields.

The Company’s net interest margin for the nine months ended September 30, 2023 was 3.94% compared to 3.60% for the same period in 2022. The increase in margin compared to prior year was primarily due to loan growth and increased yields on earnings assets, partially offset by an increase in the cost of deposits and other borrowings.

Non-Interest Income:

The Company’s non-interest income for the quarters ended September 30, 2023, June 30, 2023, and September 30, 2022 was $1.3 million, $1.1 million and $1.5 million, respectively. For the nine months ended September 30, 2023, non-interest income of $3.5 million compared to $5.4 million for the same period of 2022. The decrease in non-interest income from prior year was the result of a decrease in service charges and loan related fees and a gain recognized in the second quarter of 2022 on the sale of a portion of our solar loan portfolio.

Net interest income and non-interest income comprised total revenue of $19.9 million, $19.8 million, and $19.8 million for the quarters ended September 30, 2023, June 30, 2023, and September 30, 2022, respectively. Total revenue for the nine months ended September 30, 2023 and 2022 was $59.5 million and $54.5 million, respectively.

Non-Interest Expense:

The Company’s non-interest expense for the quarters ended September 30, 2023, June 30, 2023, and September 30, 2022 was $11.9 million, $11.6 million, and $11.2 million, respectively. The increase in non-interest expense from the second quarter of 2023 and third quarter of 2022 was primarily due to an increase in salaries and benefits, partially offset by a reduction in capitalized loan origination costs. Excluding capitalized loan origination costs, non-interest expense for the third quarter of 2023, the second quarter of 2023 and the third quarter of 2022 was $12.5 million, $12.3 million, and $12.3 million, respectively.

Non-interest expense of $35.3 million for the nine months ended September 30, 2023 increased by $2.3 million, or 7%, compared to $33.0 million for the same period of 2022. Excluding capitalized loan origination costs, non-interest expense was $37.3 million for the nine months ended September 30, 2023 and $36.1 million for the same period in 2022 which reflects investment in infrastructure to support the growth of the Company.

The Company’s efficiency ratio, the ratio of non-interest expense to revenues, was 59.64%, 58.66%, and 56.52% for the quarters ended September 30, 2023, June 30, 2023, and September 30, 2022, respectively. For the nine months ended September 30, 2023 and 2022, the Company’s efficiency ratio was 59.31% and 60.44%, respectively.

Balance Sheet:

Total assets of $1.98 billion as of September 30, 2023, represented a decrease of $21.7 million, or 1%, compared to $2.01 billion at June 30, 2023 and a decrease of $64.6 million, or 3%, compared to $2.05 billion at September 30, 2022. The decrease in total assets from the prior quarter was primarily the result of conservative new loan production combined with a modest reduction in deposit balances at the end of the quarter. Compared to the same period in the prior year, total assets decreased primarily due to conservative new loan production during 2023 and decreased liquidity as a result of a reduction in other borrowings.

Total gross loans decreased by $10.5 million, or 1%, to $1.57 billion at September 30, 2023, from $1.58 billion at June 30, 2023 and decreased by $14.8 million, or 1%, compared to $1.59 billion at September 30, 2022. During the third quarter of 2023, the reduction in gross loans was primarily the result of construction and land loans decreasing by $20.6 million, or 34%, due to the completion of a large construction project, partially offset by an increase in commercial loans of $11.6 million. Compared to the same period in the prior year, real estate other loans increased by $33.7 million, or 4%, primarily due to organic growth, and commercial, construction and land, and other loans decreased by $9.2 million, $31.5 million, and $7.8 million, respectively.

Total deposits decreased by $31.2 million, or 2%, to $1.71 billion at September 30, 2023 from $1.74 billion at June 30, 2023, and decreased by $2.0 million, or 0%, from $1.71 billion at September 30, 2022. The decrease in total deposits from the end of the second quarter of 2023 was primarily due to a decrease in demand deposits of $56.2 million, or 7%, and a decrease in time deposits of $13.5 million, or 4%, offset by an increase in money market and savings deposits of $38.5 million, or 6%. Noninterest-bearing deposits, primarily commercial business operating accounts, represented 40.2% of total deposits at September 30, 2023, compared to 42.7% at June 30, 2023 and 44.4% at September 30, 2022.

At September 30, 2023 and June 30, 2023, the Company had no outstanding borrowings, excluding junior subordinated debt securities, compared to $100.0 million at September 30, 2022.

Asset Quality:

The provision for credit losses on loans decreased to $121,000 for the third quarter of 2023 compared to $340,000 for the second quarter of 2023, and $800,000 for the third quarter of 2022. The Company had loan charge-offs of $156,000 and recoveries of $234,000 during the third quarter of 2023, no loan charge-offs or recoveries during the second quarter of 2023, and loan charge-offs of $202,000 and no recoveries during the third quarter of 2022.

Non-performing assets (“NPAs”) to total assets were 0.06% at September 30, 2023, 0.01% at June 30, 2023 and 0.02% at September 30, 2022, with non-performing loans of $1.2 million, $181,000 and $343,000, respectively, on those dates. The increase in non-performing loans during the third quarter of 2023 was due to a loan in our commercial portfolio for which the borrower has entered into a liquidation process; however, this loan has a state guarantee and no additional loss is expected for the Company as of September 30, 2023.

The allowance for credit losses on loans increased by $199,000 to $15.9 million, or 1.01% of total loans, at September 30, 2023, compared to $15.7 million, or 0.99% of total loans, at June 30, 2023 and $16.6 million, or 1.04% of total loans, at September 30, 2022. On January 1, 2023, the Company adopted the new current expected credit losses (CECL) standard. The Company’s allowance for credit losses on loans was 0.95% upon adoption on January 1, 2023 compared to 1.07% at December 31, 2022.

The allowance for credit losses on unfunded loan commitments increased by $170,000 to $2.0 million, or 0.32% of total unfunded loan commitments, at September 30, 2023, compared to $1.9 million, or 0.31% of total unfunded loan commitments, at June 30, 2023 and $430,000, or 0.07% of total unfunded loan commitments at September 30, 2022. The Company’s allowance for credit losses on unfunded loan commitments was 0.28% upon the adoption of CECL on January 1, 2023 compared to 0.07% at December 31, 2022.

Capital Adequacy:

At September 30, 2023, shareholders’ equity totaled $190.1 million compared to $184.2 million at June 30, 2023 and $164.1 million one year ago. As a result, the Company’s total risk-based capital ratio, tier I capital ratio and tier I leverage ratio of 13.00%, 9.34%, and 9.27%, respectively, were all above the regulatory standards for “well-capitalized” institutions of 10.00%, 8.00% and 5.00% respectively.

“With our strong financial performance and prudent balance sheet management, we continued to increase our capital ratios and tangible book value per share,” said Thomas A. Sa, President, Chief Financial Officer and Chief Operating Officer of California BanCorp. “We also continue to have exceptional asset quality with a very low level of non-performing assets and net recoveries in the quarter. With the strong balance sheet we have built, we believe we are well positioned to support the continued growth of our franchise and create additional long-term value for shareholders.”

About California BanCorp:

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

Contacts:

Steven E. Shelton, (510) 457-3751

Chief Executive Officer

seshelton@bankcbc.com

Thomas A. Sa, (510) 457-3775

President, Chief Financial Officer and Chief Operating Officer

tsa@bankcbc.com

Use of Non-GAAP Financial Information:

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

Forward-Looking Information:

Statements in this news release regarding expectations and beliefs about future financial performance and financial condition, as well as trends in the Company’s business and markets are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that the Company makes about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond the Company’s control. As a result of those risks and uncertainties, the Company’s actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause the Company to make changes to future plans. Those risks and uncertainties include, but are not limited to, the risk of incurring loan losses, which is an inherent risk of the banking business; the risk that the Company will not be able to continue its internal growth rate; the risk that the United States economy will experience slowed growth or recession or will be adversely affected by domestic or international economic conditions and risks associated with the Federal Reserve Board taking actions with respect to interest rates, any of which could adversely affect, among other things, the values of real estate collateral supporting many of the Company’s loans, interest income and interest rate margins and, therefore, the Company’s future operating results; risks associated with changes in income tax laws and regulations; and risks associated with seeking new client relationships and maintaining existing client relationships. Readers of this news release are encouraged to review the additional information regarding these and other risks and uncertainties to which our business is subject that are contained in our Annual Report on Form 10-K for the year ended December 31, 2022 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 September 30, 2023, which we expect to file with the SEC during the fourth quarter of 2023, and readers of this release are urged to review the additional information that will be contained in that report.

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 law.

FINANCIAL TABLES FOLLOW

CALIFORNIA BANCORP AND SUBSIDIARY

SELECTED FINANCIAL INFORMATION (UNAUDITED) - PROFITABILITY

(Dollars in Thousands, Except Per Share Data)


							Change									Change
	Q3 2023			Q2 2023			$			%			Q3 2022			$			%
*QUARTERLY HIGHLIGHTS:*
Interest income	$	28,094		$	27,172		$	922			3	%	$	21,168		$	6,926			33	%
Interest expense		9,516			8,526			990			12	%		2,805			6,711			239	%

Net interest income		18,578			18,646			(68	)		0	%		18,363			215			1	%

Provision for credit losses		314			444			(130	)		-29	%		800			(486	)		-61	%

Net interest income after provision for credit losses		18,264			18,202			62			0	%		17,563			701			4	%

Non-interest income		1,294			1,135			159			14	%		1,484			(190	)		-13	%
Non-interest expense		11,851			11,603			248			2	%		11,217			634			6	%

Income before income taxes		7,707			7,734			(27	)		0	%		7,830			(123	)		-2	%

Income tax expense		2,306			2,294			12			1	%		2,308			(2	)		0	%

Net income	$	5,401		$	5,440		$	(39	)		-1	%	$	5,522		$	(121	)		-2	%

Diluted earnings per share	$	0.64		$	0.65		$	(0.01	)		-2	%	$	0.66		$	(0.02	)		-3	%

Net interest margin		3.86	%		3.93	%		-7 Basis Points						3.94	%		-8 Basis Points

Efficiency ratio		59.64	%		58.66	%		+98 Basis Points						56.52	%		+312 Basis Points


							Change
	Q3 2023			Q3 2022			$			%
*YEAR-TO-DATE HIGHLIGHTS:*
Interest income	$	80,804		$	54,798		$	26,006			47	%
Interest expense		24,824			5,686			19,138			337	%

Net interest income		55,980			49,112			6,868			14	%

Provision for credit losses		1,116			2,675			(1,559	)		-58	%

Net interest income after provision for credit losses		54,864			46,437			8,427			18	%

Non-interest income		3,536			5,412			(1,876	)		-35	%
Non-interest expense		35,297			32,952			2,345			7	%

Income before income taxes		23,103			18,897			4,206			22	%

Income tax expense		6,812			5,458			1,354			25	%

Net income	$	16,291		$	13,439		$	2,852			21	%

Diluted earnings per share	$	1.93		$	1.60		$	0.33			21	%

Net interest margin		3.94	%		3.60	%		+34 Basis Points

Efficiency ratio		59.31	%		60.44	%		-113 Basis Points

CALIFORNIA BANCORP AND SUBSIDIARY

SELECTED FINANCIAL INFORMATION (UNAUDITED) - FINANCIAL POSITION

(Dollars in Thousands, Except Per Share Data)


							Change									Change
	Q3 2023			Q2 2023			$			%			Q3 2022			$			%
*PERIOD-END HIGHLIGHTS:*
Total assets	$	1,983,917		$	2,005,646		$	(21,729	)		-1	%	$	2,048,501		$	(64,584	)		-3	%
Gross loans		1,573,115			1,583,631			(10,516	)		-1	%		1,587,901			(14,786	)		-1	%
Deposits		1,707,081			1,738,296			(31,215	)		-2	%		1,709,078			(1,997	)		0	%
Tangible equity		182,673			176,783			5,890			3	%		156,575			26,098			17	%

Tangible book value per share	$	21.76		$	21.09		$	0.67			3	%	$	18.80		$	2.96			16	%

Tangible equity / tangible assets		9.24	%		8.85	%		+39 Basis Points						7.67	%		+157 Basis Points
Gross loans / total deposits		92.15	%		91.10	%		+105 Basis Points						92.91	%		-76 Basis Points
Noninterest-bearing deposits / total deposits		40.23	%		42.69	%		-246 Basis Points						44.39	%		-416 Basis Points


							Change									Change
	Q3 2023			Q2 2023			$			%			Q3 2022			$		%
*QUARTERLY AVERAGE HIGHLIGHTS:*
Total assets	$	1,993,147		$	1,983,877		$	9,270			0	%	$	1,930,227		$	62,920		3	%
Total earning assets		1,910,755			1,900,918			9,837			1	%		1,849,242			61,513		3	%
Gross loans		1,551,708			1,577,529			(25,821	)		-2	%		1,523,442			28,266		2	%
Deposits		1,719,416			1,684,008			35,408			2	%		1,592,096			127,320		8	%
Tangible equity		181,384			175,752			5,632			3	%		155,448			25,936		17	%

Tangible equity / tangible assets		9.13	%		8.89	%		+24 Basis Points						8.08	%		+105 Basis Points
Gross loans / total deposits		90.25	%		93.68	%		-343 Basis Points						95.69	%		-544 Basis Points
Noninterest-bearing deposits / total deposits		41.59	%		42.65	%		-106 Basis Points						46.41	%		-482 Basis Points


							Change
		Q3 2023			Q3 2022			$	%
*YEAR-TO-DATE AVERAGE HIGHLIGHTS:*
Total assets	$	1,983,839		$	1,907,661		$	76,178	4	%
Total earning assets		1,901,933			1,826,172			75,761	4	%
Gross loans		1,570,411			1,453,741			116,670	8	%
Deposits		1,701,189			1,603,620			97,569	6	%
Tangible equity		175,584			150,587			24,997	17	%

Tangible equity / tangible assets		8.88	%		7.92	%		+96 Basis Points
Gross loans / total deposits		92.31	%		90.65	%		+166 Basis Points
Noninterest-bearing deposits / total deposits		42.36	%		46.04	%		-368 Basis Points

CALIFORNIA BANCORP AND SUBSIDIARY

SELECTED INTERIM FINANCIAL INFORMATION (UNAUDITED) - ASSET QUALITY

(Dollars in Thousands)


	09/30/23			06/30/23			03/31/23			12/31/22			09/30/22
*ALLOWANCE FOR CREDIT LOSSES (LOANS):*
Balance, beginning of period	$	15,722		$	15,382		$	17,005		$	16,555		$	15,957
CECL adjustment		—			—			(1,840	)		—			—
Provision for credit losses, quarterly		121			340			464			1,100			800
Charge-offs, quarterly		(156	)		—			(247	)		(650	)		(202	)
Recoveries, quarterly		234			—			—			—			—

Balance, end of period	$	15,921		$	15,722		$	15,382		$	17,005		$	16,555


	09/30/23			06/30/23			03/31/23			12/31/22			09/30/22
*NONPERFORMING ASSETS:*
Loans accounted for on a non-accrual basis	$	1,236		$	181		$	222		$	1,250		$	182
Loans with principal or interest contractually past due 90 days or more and still accruing interest		—			—			—			—			161

Nonperforming loans	$	1,236		$	181		$	222		$	1,250		$	343
Other real estate owned		—			—			—			—			—

Nonperforming assets	$	1,236		$	181		$	222		$	1,250		$	343

Nonperforming loans by asset type:
Commercial	$	1,183		$	—		$	—		$	1,028		$	161
Real estate other		—			—			—			—			—
Real estate construction and land		—			—			—			—			—
SBA		53			181			222			222			182
Other		—			—			—			—			—

Nonperforming loans	$	1,236		$	181		$	222		$	1,250		$	343


	09/30/23			06/30/23			03/31/23			12/31/22			09/30/22
*ASSET QUALITY:*
Allowance for credit losses (loans) / gross loans		1.01	%		0.99	%		0.95	%		1.07	%		1.04	%
Allowance for credit losses (loans) / nonperforming loans		1288.11	%		8686.19	%		6928.83	%		1360.40	%		4826.53	%
Nonperforming assets / total assets		0.06	%		0.01	%		0.01	%		0.06	%		0.02	%
Nonperforming loans / gross loans		0.08	%		0.01	%		0.01	%		0.08	%		0.02	%
Net quarterly charge-offs / gross loans		0.00	%		0.00	%		0.02	%		0.04	%		0.01	%

CALIFORNIA BANCORP AND SUBSIDIARY

INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Dollars in Thousands, Except Per Share Data)


	Three months ended									Nine months ended
	09/30/23			06/30/23			09/30/22			09/30/23			09/30/22
INTEREST INCOME
Loans	$	23,804		$	23,476		$	19,084		$	69,752		$	50,268
Federal funds sold		2,814			2,238			867			6,811			1,283
Investment securities		1,476			1,458			1,217			4,241			3,247

Total interest income		28,094			27,172			21,168			80,804			54,798

INTEREST EXPENSE
Deposits		8,961			7,493			1,672			22,476			3,274
Other		555			1,033			1,133			2,348			2,412

Total interest expense		9,516			8,526			2,805			24,824			5,686

Net interest income		18,578			18,646			18,363			55,980			49,112
Provision for credit losses		314			444			800			1,116			2,675

Net interest income after provision for credit losses		18,264			18,202			17,563			54,864			46,437

NON-INTEREST INCOME
Service charges and other fees		1,003			867			1,237			2,733			3,260
Gain on sale of loans		—			—			—			—			1,393
Other non-interest income		291			268			247			803			759

Total non-interest income		1,294			1,135			1,484			3,536			5,412

NON-INTEREST EXPENSE
Salaries and benefits		8,238			7,831			7,415			23,945			21,654
Premises and equipment		1,155			1,168			1,275			3,503			3,844
Other		2,458			2,604			2,527			7,849			7,454

Total non-interest expense		11,851			11,603			11,217			35,297			32,952

Income before income taxes		7,707			7,734			7,830			23,103			18,897
Income taxes		2,306			2,294			2,308			6,812			5,458

NET INCOME	$	5,401		$	5,440		$	5,522		$	16,291		$	13,439

EARNINGS PER SHARE
Basic earnings per share	$	0.64		$	0.65		$	0.66		$	1.95		$	1.62

Diluted earnings per share	$	0.64		$	0.65		$	0.66		$	1.93		$	1.60

Average common shares outstanding		8,390,138			8,369,907			8,322,529			8,366,584			8,298,269

Average common and equivalent shares outstanding		8,455,917			8,414,213			8,405,669			8,438,444			8,394,439

PERFORMANCE MEASURES
Return on average assets		1.08	%		1.10	%		1.13	%		1.10	%		0.94	%
Return on average equity		11.35	%		11.91	%		13.45	%		11.90	%		11.37	%
Return on average tangible equity		11.81	%		12.41	%		14.09	%		12.40	%		11.93	%
Efficiency ratio		59.64	%		58.66	%		56.52	%		59.31	%		60.44	%

CALIFORNIA BANCORP AND SUBSIDIARY

INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in Thousands)


	09/30/23			06/30/23			03/31/23			12/31/22			09/30/22
ASSETS
Cash and due from banks	$	17,128		$	19,763		$	15,121		$	16,686		$	24,709
Federal funds sold		181,854			187,904			198,804			215,696			216,345
Investment securities		149,244			151,129			153,769			155,878			157,531
Loans:
Commercial		633,902			622,270			656,519			634,535			643,131
Real estate other		858,611			856,344			853,431			848,241			824,867
Real estate construction and land		40,003			60,595			63,928			63,730			71,523
SBA		4,415			4,936			5,610			7,220			8,565
Other		36,184			39,486			37,775			39,695			39,815

Loans, gross		1,573,115			1,583,631			1,617,263			1,593,421			1,587,901
Unamortized net deferred loan costs (fees)		1,312			1,637			1,765			2,040			1,902
Allowance for credit losses		(15,921	)		(15,722	)		(15,382	)		(17,005	)		(16,555	)

Loans, net		1,558,506			1,569,546			1,603,646			1,578,456			1,573,248
Premises and equipment, net		2,432			2,625			2,848			3,072			3,382
Bank owned life insurance		25,697			25,519			25,334			25,127			24,955
Goodwill and core deposit intangible		7,442			7,452			7,462			7,472			7,483
Accrued interest receivable and other assets		41,614			41,708			43,790			39,828			40,848

Total assets	$	1,983,917		$	2,005,646		$	2,050,774		$	2,042,215		$	2,048,501

LIABILITIES
Deposits:
Demand noninterest-bearing	$	686,723		$	742,160		$	740,650		$	811,671		$	758,716
Demand interest-bearing		28,533			29,324			30,798			37,815			35,183
Money market and savings		672,119			633,620			616,864			671,016			597,244
Time		319,706			333,192			329,298			271,238			317,935

Total deposits		1,707,081			1,738,296			1,717,610			1,791,740			1,709,078

Junior subordinated debt securities		54,256			54,221			54,186			54,152			54,117
Other borrowings		—			—			75,000			—			100,000
Accrued interest payable and other liabilities		32,465			28,894			25,417			24,069			21,248

Total liabilities		1,793,802			1,821,411			1,872,213			1,869,961			1,884,443

SHAREHOLDERS’ EQUITY
Common stock		112,656			112,167			111,609			111,257			110,786
Retained earnings		78,824			73,423			68,082			62,297			54,628
Accumulated other comprehensive loss		(1,365	)		(1,355	)		(1,130	)		(1,300	)		(1,356	)

Total shareholders’ equity		190,115			184,235			178,561			172,254			164,058

Total liabilities and shareholders’ equity	$	1,983,917		$	2,005,646		$	2,050,774		$	2,042,215		$	2,048,501

CAPITAL ADEQUACY
Tier I leverage ratio		9.27	%		9.01	%		8.76	%		7.98	%		8.21	%
Tier I risk-based capital ratio		9.34	%		9.07	%		8.54	%		8.23	%		7.98	%
Total risk-based capital ratio		13.00	%		12.73	%		12.08	%		11.77	%		11.57	%
Total equity/ total assets		9.58	%		9.19	%		8.71	%		8.43	%		8.01	%
Book value per share	$	22.64		$	21.98		$	21.37		$	20.67		$	19.70

Common shares outstanding		8,395,483			8,383,772			8,355,378			8,332,479			8,327,781

CALIFORNIA BANCORP AND SUBSIDIARY

INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)

(Dollars in Thousands)


	Three months ended September 30,							Three months ended June 30,
	2023							2023
	Average Balance		Yields or Rates			Interest Income/ Expense		Average Balance		Yields or Rates			Interest Income/ Expense
ASSETS
Interest earning assets:
Loans (1)	$	1,551,708		6.09	%	$	23,804	$	1,577,529		5.97	%	$	23,476
Federal funds sold		208,725		5.35	%		2,814		170,608		5.26	%		2,238
Investment securities		150,322		3.90	%		1,476		152,781		3.83	%		1,458

Total interest earning assets		1,910,755		5.83	%		28,094		1,900,918		5.73	%		27,172

Noninterest-earning assets:
Cash and due from banks		20,351							19,207
All other assets (2)		62,041							63,752

TOTAL	$	1,993,147						$	1,983,877

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Deposits:
Demand	$	28,766		0.33	%		24	$	30,346		0.16	%		12
Money market and savings		642,909		2.95	%		4,775		609,200		2.50	%		3,793
Time		332,662		4.96	%		4,162		326,291		4.53	%		3,688
Other		54,235		4.06	%		555		90,188		4.59	%		1,033

Total interest-bearing liabilities		1,058,572		3.57	%		9,516		1,056,025		3.24	%		8,526

Noninterest-bearing liabilities:
Demand deposits		715,079							718,171
Accrued expenses and other liabilities		30,665							26,441
Shareholders’ equity		188,831							183,240

TOTAL	$	1,993,147						$	1,983,877

Net interest income and margin (3)				3.86	%	$	18,578				3.93	%	$	18,646

(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 net deferred loan costs of $82,000 and $175,000, respectively.

(2)	Other noninterest-earning assets includes the allowance for credit losses of $15.8 million and $15.4 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 September 30,
	2023							2022
	Average Balance		Yields or Rates			Interest Income/ Expense		Average Balance		Yields or Rates			Interest Income/ Expense
ASSETS
Interest earning assets:
Loans (1)	$	1,551,708		6.09	%	$	23,804	$	1,523,442		4.97	%	$	19,084
Federal funds sold		208,725		5.35	%		2,814		162,314		2.12	%		867
Investment securities		150,322		3.90	%		1,476		163,486		2.95	%		1,217

Total interest earning assets		1,910,755		5.83	%		28,094		1,849,242		4.54	%		21,168

Noninterest-earning assets:
Cash and due from banks		20,351							20,153
All other assets (2)		62,041							60,832

TOTAL	$	1,993,147						$	1,930,227

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Deposits:
Demand	$	28,766		0.33	%		24	$	40,044		0.08	%	$	8
Money market and savings		642,909		2.95	%		4,775		600,100		0.62	%		938
Time		332,662		4.96	%		4,162		213,001		1.35	%		726
Other		54,235		4.06	%		555		154,101		2.92	%		1,133

Total interest-bearing liabilities		1,058,572		3.57	%		9,516		1,007,246		1.10	%		2,805

Noninterest-bearing liabilities:
Demand deposits		715,079							738,951
Accrued expenses and other liabilities		30,665							21,094
Shareholders’ equity		188,831							162,936

TOTAL	$	1,993,147						$	1,930,227

Net interest income and margin (3)				3.86	%	$	18,578				3.94	%	$	18,363

(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 net deferred loan (costs) fees of $(82,000) and $100,000, respectively.

(2)	Other noninterest-earning assets includes the allowance for credit losses of $15.8 million and $16.0 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)


	Nine months ended September 30,
	2023							2022
	Average Balance		Yields or Rates			Interest Income/ Expense		Average Balance		Yields or Rates			Interest Income/ Expense
ASSETS
Interest earning assets:
Loans (1)	$	1,570,411		5.94	%	$	69,752	$	1,453,741		4.62	%	$	50,268
Federal funds sold		178,948		5.09	%		6,811		217,008		0.79	%		1,283
Investment securities		152,574		3.72	%		4,241		155,423		2.79	%		3,247

Total interest earning assets		1,901,933		5.68	%		80,804		1,826,172		4.01	%		54,798

Noninterest-earning assets:
Cash and due from banks		19,227							19,550
All other assets (2)		62,679							61,939

TOTAL	$	1,983,839						$	1,907,661

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Deposits:
Demand	$	31,029		0.19	%		43	$	40,214		0.08	%		25
Money market and savings		626,318		2.49	%		11,672		652,849		0.45	%		2,185
Time		323,148		4.45	%		10,761		172,284		0.83	%		1,064
Other		71,782		4.37	%		2,348		125,108		2.58	%		2,412

Total interest-bearing liabilities		1,052,277		3.15	%		24,824		990,455		0.77	%		5,686

Noninterest-bearing liabilities:
Demand deposits		720,694							738,273
Accrued expenses and other liabilities		27,827							20,848
Shareholders’ equity		183,041							158,085

TOTAL	$	1,983,839						$	1,907,661

Net interest income and margin (3)				3.94	%	$	55,980				3.60	%	$	49,112

(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 net deferred loan (costs) fees of $(482,000) and $501,000, respectively.

(2)	Other noninterest-earning assets includes the allowance for loan losses of $16.1 million and $15.0 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)


	Three months ended						Nine months ended
	09/30/23		06/30/23		09/30/22		09/30/23		09/30/22
*REVENUE:*
Net interest income	$	18,578	$	18,646	$	18,363	$	55,980	$	49,112
Non-interest income		1,294		1,135		1,484		3,536		5,412

Total revenue	$	19,872	$	19,781	$	19,847	$	59,516	$	54,524


	Three months ended						Nine months ended
	09/30/23		06/30/23		09/30/22		09/30/23		09/30/22
*NON-INTEREST EXPENSE:*
Total non-interest expense	$	11,851	$	11,603	$	11,217	$	35,297	$	32,952
Total capitalized loan origination costs		668		694		1,102		2,013		3,160

Total operating expenses, before capitalization of loan origination costs	$	12,519	$	12,297	$	12,319	$	37,310	$	36,112

INVESTOR PRESENTATION Q3 2023 Steven E. Shelton CEO Thomas A. Sa President, CFO & COO Exhibit 99.2

FORWARD-LOOKING STATEMENTS During the course of the presentation and any transcript that may result, written or otherwise, California BanCorp (the “Company”) may make projections or other forward-looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties. Actual results may differ materially from those stated in any forward-looking statement based on a number of important factors and risks. Although the Company may indicate and believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate or incorrect and therefore, there can be no assurance that the results contemplated in the forward-looking statements will be realized. The Company undertakes no obligation to release publicly the results of any revisions to the forward-looking statements included herein to reflect events or circumstances after today, or to reflect the occurrence of unanticipated events. The Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Based on CALB’s stock price of $20.10 as of 9/29/2023 Walnut Creek Headquarters/Regional Office in Oakland Regional Offices in San Jose, Walnut Creek and Sacramento Branch services in Walnut Creek OVERVIEW OF CALIFORNIA BANCORP Established in 2007 as a relationship focused commercial business bank serving Northern California with $1.98 billion in assets and a market capitalization of ~$169 million(1) Majority of executive management joined the bank at inception Significant commercial core deposit base Primary relationship managers with average banking experience of over 25 years and average loan books of $45 million Positioned to leverage recent investments to enhance our platform and extend our markets FOCUSED REGIONAL OFFICE FOOTPRINT COMPANY OVERVIEW FINANCIAL SNAPSHOT – 9/30/23 Balance Sheet ($mm) Q3 2023 Profitability (%) Assets 1,984 ROAA 1.08 Loans 1,573 ROATCE 11.81 Deposits 1,707 Net Interest Margin 3.86 Tangible Equity 183 Efficiency Ratio 59.64 Loans/ Deposits (%) 92% Cost of Deposits 2.07 Loan Composition (%) Deposit Composition (%) C&I Loans / Gross Loans 40.3 DDA/ Total Deposits 40.2 CRE Loans / Gross Loans 54.6 Core Deposits/ Total Deposits 81.3 Capital Ratios (Consolidated) (%) Credit Metrics (%) TCE / TA 9.24 NPAs / Loans & OREO 0.08 Leverage Ratio 9.27 NPAs / Assets 0.06 Tier 1 Ratio 9.34 Reserves / Gross Loans 1.01 TRBC Ratio 13.00 NCOs / Avg. Loans 0.00

Branch light, commercial focused business bank with strong middle market relationships throughout Northern California Strong earnings outlook as efficiencies from investments are realized Proven organic and acquisitive growth story Experienced management team and seasoned C&I relationship teams with strong ties to the local markets Quality core deposit franchise and commercial relationship strategy Disciplined underwriting standards with best-in-class asset quality metrics INVESTMENT HIGHLIGHTS 3

Continued Strong Financial Performance Conservative Approach to New Loan Production 3rd QUARTER 2023 HIGHLIGHTS Net income of $5.4 million Diluted EPS of $0.64 ROA of 1.08%, ROE of 11.35% and NIM of 3.86% Total loans declined slightly from end of prior quarter as conservative underwriting criteria and pricing discipline result in lower loan production Decline in construction portfolio as projects were completed and paid off, partially offset by increase in commercial loans resulting from new full banking relationships Stable Deposit Base Total deposits decreased slightly from end of prior quarter Noninterest-bearing deposits remain above 40% of total deposits Decline in noninterest-bearing deposits largely related to period-end fluctuations Increases in Capital Ratios and Tangible Book Value Strong financial performance and prudent balance sheet management drives increases in all capital ratios from end of prior quarter Minimal AOCI impact TBV/share increased 3.2% during 3Q23 Continued Strong Asset Quality Non-performing assets to total assets remain low at 0.06% Net recoveries in the quarter Allowance to NPLs of 1,288%

BRANCH LIGHT, COMMERCIAL FOCUSED BUSINESS BANK Middle market commercial banking focus Privately owned companies with $30 million - $300 million in annual revenue Clients with minimum lending relationships of $2 million or $1 million in deposits Portfolio managed over the long term to ~39% C&I loans and ~43% noninterest-bearing deposits Investing in other asset generating business lines Asset-Based Lending division established in July 2011 Practice Acquisition division established in March 2011 Construction division established December 2015 Sponsor Finance division established in February 2020 Strong core commercial deposit generation strategy Utilize technology with minimal branches Provide commercial cash management services to middle market clients Dedicated treasury management sales team and platform Dollars in millions Data as of 12/31 for each respective year 2015 – Q3’23 CAGR = 16.0% BUSINESS MODEL OVERVIEW IMPRESSIVE LOAN GROWTH STRONG DEPOSIT GROWTH 2015 – Q3’23 CAGR Total gross loans = 15.4% Gross loans (ex. PPP) = 15.4%

TAKING SHARE FROM NATIONAL/REGIONAL BANKS Combine Capabilities of a Big Bank with the High Service Levels of a Community Bank Attract top talent with deep market experience to compete against and win business from large banks Professional team with a consultative delivery process Invest in systems, tools, and technology for success in niche markets Offer clients access to key decision makers Ability to execute quickly, with market leading responsiveness PRODUCT AND SERVICE DIFFERENTIATION INDUSTRY & SPECIALTY LENDING FOCUS OUR “TYPICAL CLIENT” Commercial Banking Focused on Four Core Industries Manufacturing and Distribution Professional Contractor Investor CRE Practice Acquisition Asset Based Lending Sponsor Finance Construction Specialty Lending Groups ~$75 M in annual revenue $8 M revolving line with $3 M average outstanding $3 M equipment term loan $5 M commercial real estate loan $3 M demand deposit operating account $5 M money market accounts to hold surplus deposits Fee income driven by commercial portfolio account analysis and treasury management services

EXPERIENCED MANAGEMENT TEAM Served as Executive Vice President and CCO from 2007 through 2017 Previously served in various executive management positions including Executive Vice President and Senior Lending Officer for Wells Fargo’s corporate bank and President & CCO of CivicBank of Commerce John Lindstedt, SEVP & CCO Emeritus Tom M. Dorrance, SEVP Technology & Operations Previously served as a Senior Vice President and Chief Information Officer for North Bay Bancorp Has worked in financial management and commercial banking since 1992 including I.T. Manager at CivicBank of Commerce Michele Wirfel, SEVP & CBO Previously served as the Bank’s Executive Vice President & East Bay Market President Has worked in financial management and commercial banking since 1991 in various executive management positions including regional manager for CivicBank of Commerce Age: 84 Age: 57 Age: 51 Previously served as an Executive Vice President of the Bank primarily responsible for managing production since the Bank’s founding in 2007 Served for thirteen years in various executive management positions including President of CivicBank of Commerce Steven E. Shelton, CEO Age: 58 Years at CALB: 16 Years in Industry: 37 Years at CALB: 16 Years in Industry: 53 Years at CALB: 16 Years in Industry: 29 Years at CALB: 16 Years in Industry: 30 Veteran banker with more than 15 years banking experience in the Sacramento area Previously served as Wells Fargo Senior Vice President and Sacramento Region Manager Scott Myers SEVP & CLO Age: 49 Joined 2019 Years in Industry: 25 More than 30 years’ experience in executive finance and risk management roles, most recently serving as Chief Risk Officer for Western Alliance Bank. Previously served in various executive and director roles at Bridge Bank and its holding company Bridge Capital Holdings (BBNK), including Chief Financial Officer and Chief Strategy Officer. Thomas A. Sa, President, CFO & COO Age: 57 Joined 2019 Years in Industry: 33 Previously served as Deputy Chief Credit Officer and part of senior management from 2007 to 2018 17 years of experience in various positions including lending and credit administration at Mechanics Bank Vivian Mui, SEVP & CCO Age: 40 Years at CALB: 16 Years in Industry: 20

Dollars in millions Tangible book value per share and capital offering price adjusted for historical stock splits Data as of 12/31 for each respective year DEMONSTRATED GROWTH TRACK RECORD $16 million common stock offering at $9.90 per share to fund growth in June 2014 $4 million private placement offering at $12.86 per share to payoff SBLF in May 2016 Completed acquisition of Pan Pacific Bank ($131 million in assets) in December 2015 2015 – Q3’23 Asset CAGR of 15.4% Practice Acquisition Division opened in March 2011 Completed $25.0 million private offering of common stock in August 2018 Holding Company formed in June 2017 Walnut Creek LPO opened in July 2017 Bank founded in March 2007 with $27.5 million in capital Completed expansion into the Sacramento Region San Jose ABL Division opened in July 2011 Launched Sponsor Finance in February 2020 Completed $20 million sub-debt offering in September 2020 Listed on the NASDAQ stock market in March 2020 SUCCESSFUL EXPANSION THROUGHOUT NORTHERN CALIFORNIA Completed $35 million sub-debt offering in August 2021

Dollars in millions Core deposits defined as total deposits less time deposits and brokered deposits. Data as of 12/31 for each respective year 2015 –Q3’23 CAGR DDA: 15.5% Total Deposits: 16.0% 0.23% 0.24% 0.35% Cost of Deposits 94% 93% 94% Core Deposit Mix 0.81% 88% 0.55% 91% 0.48% 87% 0.27% 91% 42% 44% 41% 39% 44% 46% 40% HISTORICAL DEPOSIT COMPOSITION DEPOSIT PORTFOLIO HIGHLIGHTS–9/30/23 STRONG AND GROWING CORE DEPOSIT BASE Deposits decreased slightly during 3Q23 primarily due to fluctuations in period end balances of noninterest-bearing deposits Resilient core deposit base driven by commercial clients 95%+ of commercial relationships hold deposits at the bank Core deposits comprise 81% of total deposits Utilize remote deposit capture and commercial cash management to generate and retain deposits Treasury management division established in Q4-2019 DEPOSIT COMPOSITION 0.47% 85% 2.07% 81%

DEPOSIT BASE CHARACTERISTICS Granular, well diversified deposit base No meaningful industry concentrations No venture capital or crypto-related deposits High percentage of deposits related to operating accounts and credit facilities creates sticky deposit base Strong deposit pipeline centered in operating accounts Insured and Collateralized Deposits represent 61% of total deposits Liquidity coverage of uninsured deposits exceeds 100%

Dollars in millions Data as of 12/31 for each respective year Excludes PPP loans DIVERSIFIED COMMERCIAL LOAN PORTFOLIO HISTORICAL LOAN COMPOSITION(1) OPERATING LOC USAGE LOAN PORTFOLIO COMPOSITION GROSS LOAN FUNDING VS. NET LOAN GROWTH(2) (3) 2017 – Q3’23 CAGR C&I: 12.1% Total Loans: 14.2% 4.88% 96% 5.19% 96% 5.09% 97% 4.22% 89% Yield on Loans Loans / Deposits 4.29% 82% 45% 40% 41% 30% (39% ex.PPP) 4.96% 89% 40% (41% ex.PPP) 40% 6.09% 92%

NEW LOAN PRODUCTION IN 3Q23 BOOKING NEW LOANS AT ATTRACTIVE RATES(1) NEW LOAN FUNDINGS(1) WTD. AVG. RATE ON NEW LOANS(1) Funded new loans with balances of $46 million in 3Q23 compared to $43 million in 2Q23 and $124 million in 3Q22 Weighted average rate on newly funded loans was 8.34% in 3Q23 compared to 8.41% in 2Q23 and 5.87% in 3Q22 3Q23 new loan dollar mix was 82% commercial, 18% CRE and 0% other Dollars in millions Excludes PPP loans

CRE LOAN PORTFOLIO – INVESTOR CRE CONSERVATIVELY UNDERWRITTEN PORTFOLIO WITH AVERAGE LTV OF 48.9% INVESTOR CRE BY PROPERTY TYPE(1) INVESTOR CRE BY GEOGRAPHIC BREAKDOWN (1) Data as a percent of total investor CRE, $583 million Data as of 9/30/2023

CRE LOAN PORTFOLIO – INVESTOR CRE: OFFICE INVESTOR CRE OFFICE COMPOSITION(1) PORTFOLIO HIGHLIGHTS CRE PORTFOLIO COMPOSITION INVESTOR CRE NON-MEDICAL OFFICE GEOGRAPHY(2) Office CRE represents 10.9% of total loan portfolio with more than 80% of credits being recourse loans Investor Office Non-Medical/Dental portfolio represents 4% of total portfolio No exposure to downtown San Francisco market Majority of credits are located in suburban markets with stable tenants like medical and dental practices Conservative underwriting criteria with low LTVs and high DCRs

COMMERCIAL LOAN PORTFOLIO WELL-DIVERSIFIED PORTFOLIO WITH FOCUS ON STRONG BORROWERS IN RECESSION RESISTANT INDUSTRIES COMMERCIAL LOAN PORTFOLIO(1) COMMERCIAL – SPONSOR FINANCE(2) Data as a percent of total Commercial Loans, $634 million Data as a percent of total Sponsor Finance Loans, $216 million Data as of 9/30/2023 SPONSOR FINANCE HIGHLIGHTS Weighted Average Senior Leverage: 3.43 Weighted Total Leverage: 4.18 Weighted Average FCCR: 2.02 Overall Credit Quality Trend: Stable

NET CHARGE-OFFS (RECOVERIES) ($000S)(1) NONPERFORMING ASSETS RESERVES / LOANS (1) NCOS (RECOVERIES) / AVG. LOANS (%)(2) CECL Methodology adopted 1/1/2023 Net charge-offs for 2020 were concentrated in 2Q20 related to non-systemic issues ASSET QUALITY TRENDS

ROATCE NET INTEREST MARGIN ROAA EFFICIENCY RATIO HISTORICAL PROFITABILITY TRENDS

Disciplined Expense Management Driving Greater Operating Leverage Investment phase in 2018-2019 (talent, product development, and technology) built highly leverageable infrastructure and strong commercial banking team Following investment phase, revenue growth rate has been well in excess of expense growth rate, resulting in greater operating leverage and increasing profitability Dollars in millions OPERATING EXPENSES BEFORE CAPITALIZED LOAN ORIGINATION COSTS $11.9 $12.3 $12.7 $12.5 $12.3 $12.6

CAPITAL RATIOS – BANK ONLY Data as of 12/31 for each respective year Closed subordinated debt offerings to support consolidated capital ratios totaling $20 million in 2020 and $35 million in 2021 LEVERAGE RATIO TIER 1 RATIO TCE / TA TOTAL CAPITAL RATIO

2023 OUTLOOK AND PRIORITIES CONSERVATIVE LOAN PRODUCTION CONTINUE GROWING DEPOSIT MARKET SHARE Remain conservative in new loan production until economic conditions improve with near-term focus primarily on high quality C&I loans Capitalize on growing reputation and increased scale to continue adding new relationships with clients that provide lower-cost deposits EXPENSE MANAGEMENT Past investments in talent and technology enable us to tightly manage expenses and realize more operating leverage while continuing to add talent in areas that provide high value opportunities TREASURY MANAGEMENT Capitalize on improved treasury management platform to continue adding new commercial relationships that drive higher levels of fee income INTEREST RATE RISK MANAGEMENT Make adjustments in interest rate sensitivity as rate environment evolves to protect NIM when Fed starts to reduce interest rates PROFITABILITY Strength of franchise, with excellent asset quality, high level of reserves, and stable deposit base, positions the Company well to continue generating strong financial performance even in a more challenging environment

Northern California commercial business bank with a disciplined approach to credit underwriting Proven organic and acquisition growth capabilities Strong commercial loan portfolio with corresponding commercial relationship deposits Experienced management team and seasoned C&I relationship managers Keen focus on relationship core deposits in deposit rich industries SUMMARY 3

Please send questions to ir@bankcbc.com Or Call 510.457.3751 CaliforniaBankofCommerce.com

Document and Entity Information	Oct. 26, 2023
Cover [Abstract]
Amendment Flag	false
Entity Central Index Key	0001752036
Document Type	8-K
Document Period End Date	Oct. 26, 2023
Entity Registrant Name	CALIFORNIA BANCORP
Entity Address, Country	CA
Entity Incorporation State Country Code	CA
Entity File Number	001-39242
Entity Tax Identification Number	82-1751097
Entity Address, Address Line One	1300 Clay Street
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Oakland
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94612
City Area Code	(510)
Local Phone Number	457-3737
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common Stock
Trading Symbol	CALB
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	true
Entity Ex Transition Period	false