California Bancorp (CALB) Reports Q3 2023 Earnings and Financial Results
Net income for Q3 2023 remained consistent with Q2 2023 at $5.4 million, a slight decrease from $5.5 million in Q3 2022.
For the first nine months of 2023, net income was $16.3 million, a 21% increase from $13.4 million in the same period in 2022.
Diluted earnings per share were $0.64 for Q3 2023, compared to $0.65 for Q2 2023 and $0.66 for Q3 2022.
Net interest income for Q3 2023 was $18.6 million, consistent with Q2 2023, and up from $18.4 million in Q3 2022.
California Bancorp (NASDAQ:CALB) released its financial results for the third quarter and first nine months of 2023 on October 26, 2023. The company reported a net income of $5.4 million for both Q3 and Q2 of 2023, compared to $5.5 million for Q3 of 2022. For the first nine months of 2023, net income was $16.3 million, a 21% increase from $13.4 million during the same period in 2022.
Financial Performance
California Bancorp (NASDAQ:CALB) reported diluted earnings per share of $0.64 for Q3 2023, compared to $0.65 for Q2 2023 and $0.66 for Q3 2022. For the first nine months of 2023, diluted earnings per share were $1.93, compared to $1.60 for the same period in 2022.
Net interest income for Q3 2023 was $18.6 million, consistent with Q2 2023, and up from $18.4 million in Q3 2022. For the first nine months of 2023, net interest income was $56.0 million, a 14% increase from $49.1 million during the same period in 2022.
Company Commentary
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.
Financial Highlights
For the three months ended September 30, 2023, the company's net interest margin was 3.86%, compared to 3.93% for Q2 2023 and 3.94% for Q3 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.
Non-interest income for Q3 2023 was $1.3 million, compared to $1.1 million for Q2 2023 and $1.5 million for Q3 2022. For the first nine months of 2023, non-interest income was $3.5 million, compared to $5.4 million for the same period in 2022.
Balance Sheet and Asset Quality
As of September 30, 2023, total assets were $1.98 billion, a decrease of 1% compared to $2.01 billion at the end of Q2 2023. Total gross loans decreased by 1% to $1.57 billion at the end of Q3 2023, from $1.58 billion at the end of Q2 2023.
The provision for credit losses on loans decreased to $121,000 for Q3 2023 compared to $340,000 for Q2 2023, and $800,000 for Q3 2022. Non-performing assets to total assets were 0.06% at the end of Q3 2023, up from 0.01% at the end of Q2 2023.
Capital Adequacy
At the end of Q3 2023, shareholders' equity totaled $190.1 million compared to $184.2 million at the end of Q2 2023. 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.
Explore the complete 8-K earnings release (here) from California Bancorp for further details.
This article first appeared on GuruFocus.
