{"id":751731,"date":"2023-04-26T18:24:30","date_gmt":"2023-04-26T22:24:30","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/california-bancorp-reports-financial-results-for-the-first-quarter-ended-march-31-2023\/"},"modified":"2023-04-26T18:24:30","modified_gmt":"2023-04-26T22:24:30","slug":"california-bancorp-reports-financial-results-for-the-first-quarter-ended-march-31-2023","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/california-bancorp-reports-financial-results-for-the-first-quarter-ended-march-31-2023\/","title":{"rendered":"California BanCorp Reports Financial Results for the First Quarter Ended March 31, 2023"},"content":{"rendered":"
\n

OAKLAND, Calif., April 26, 2023 (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, 2023.<\/p>\n

The Company reported net income of $5.5 million for the first quarter of 2023, representing a decrease of $2.2 million, or 29%, compared to $7.7 million for the fourth quarter of 2022 and an increase of $1.8 million, or 48%, compared to $3.7 million in the first quarter of 2022. \u00a0\u00a0\u00a0<\/p>\n

Diluted earnings per share of $0.64 for the first quarter of 2023 compared to $0.91 for the fourth quarter of 2022 and $0.44 for the first quarter of 2022.\u00a0\u00a0<\/p>\n

\u201cDespite the more challenging operating environment that we saw during the first quarter, we continued to generate strong financial performance with our return on average assets remaining above 1%,\u201d said Steven Shelton, Chief Executive Officer of California BanCorp. \u201cWhile being more conservative in our approach to new loan production, we continued to generate high quality lending opportunities that resulted in our total loans increasing at a 6% annualized rate in the first quarter, with most of the growth coming in our commercial portfolio. During the first two months of the quarter, we saw the usual seasonal outflows of deposits largely related to tax payments and profit distributions among our clients, followed by an increase in deposits during March as existing clients rebuilt their account balances and we continued to add new deposit relationships. Due to the strong relationships we have with our clients based on the level of service and expertise that we provide, as well as the high level of operating accounts that we maintain, we have built a sticky deposit base that has demonstrated excellent stability during the turmoil that has impacted the banking industry over the past two months.\u201d<\/p>\n

\u201cWhile our deposit base was stable in March, we increased our liquidity through short-term borrowings and brokered deposits, which had an impact on our level of profitability in the first quarter, but we believed was prudent from a risk management perspective. The short-term nature of the borrowings and brokered deposits provides us with the flexibility to make adjustments in our funding mix as market conditions change, which should positively impact our net interest margin. Our primary goal this year is to continue to develop deposit relationships with high quality commercial clients that maintain their operating accounts with the bank. We believe the current challenges in the broader banking industry have made the environment more favorable for attracting new clients given our strong balance sheet and the compelling value proposition that we can offer. We believe our success in adding new clients will contribute to the continued long-term profitable growth of the company and further increase the value of our franchise,\u201d said Mr. Shelton.<\/p>\n

\n Financial Highlights:<\/strong>\n <\/p>\n

\n Profitability – three months ended March 31, 2023 compared to December 31, 2022<\/em>\n <\/p>\n