BCAL · Southern California Bancorp

California BanCorp's Q1 2026 results reflect post-merger stabilization with net income of $13.8 million, down from $16.4 million in Q4 2025 primarily due to lower net interest income ($42.1 million vs. $42.9 million), reduced noninterest income ($2.1 million vs. $3.0 million), and a smaller reversal of provision for credit losses ($381 thousand vs. $4.4 million). Net interest margin improved slightly to 4.47% from 4.44%, as a 14 basis point drop in cost of funds to 1.36% outpaced a 10 basis point decline in yield on interest-earning assets to 5.72%. Loan yields fell 17 basis points to 6.14%, impacted by nonaccrual reversals, though accretion from acquired loans added 44 basis points. Deposit costs improved sharply to 1.29% from 1.43%, supporting margin expansion, with noninterest-bearing deposits rising to 36.8% of total $3.39 billion deposits. Noninterest expense declined $2.4 million to $25.5 million, driven by absence of prior quarter's $2.0 million litigation settlements, improving efficiency ratio to 57.69%. Balance sheet showed modest growth in total assets to $4.05 billion, with loans held for investment down $61.1 million to $2.97 billion amid paydowns and payoffs, offset by $98.4 million originations. Nonperforming assets rose to 0.97% of total assets, and ACL remained stable at 1.21%. CEO David Rainer highlighted merger benefits including stronger balance sheet and statewide footprint, with investments in talent for organic growth. Capital returns included $7.4 million share repurchases and $0.10 dividend, with ratios exceeding well-capitalized thresholds and tangible book value per share up to $13.97.