Southern California Bancorp Reports Strong Organic Loan Growth for the Third Quarter of 2021

·27 min read

SAN DIEGO, October 28, 2021--(BUSINESS WIRE)--Southern California Bancorp (the "Company") (OTC Pink: BCAL), the holding company for Bank of Southern California, N.A. (the "Bank"), today reported financial results for the third quarter of 2021.

Third Quarter 2021 Highlights

  • Net income available to common shareholders increased to $3.5 million, up $1.1 million, or 45.9% from $2.4 million in the prior quarter

  • Net organic loans (non-PPP) increased to $1.1 billion, up $110.8 million, or 11.8%, from June 30, 2021, and up $223.9 million or 27.1% from December 31, 2020

  • PPP loan portfolio balance of $181.4 million, down from $346.6 million at June 30, 2021

  • Total assets of $1.8 billion, up $6.1 million, or 0.3%, from June 30, 2021, and up $205.1 million, or 13.0%, from December 31, 2020

  • Total deposits of $1.6 billion, up $4.9 million, or 0.3% (after the sale of three branches with combined deposits of $82.0 million), from June 30, 2021, and up $371.6 million, or 31.1%, from December 31, 2020

  • Noninterest-bearing demand deposits were 48.6% of total deposits, up from 47.9% at June 30, 2021

  • Net interest margin of 3.67% in the third quarter, compared to 3.72% in the prior quarter; average yield on non-PPP loans of 4.60%

  • Nonperforming assets to total assets ratio remains at 0.04%, the same as the prior quarter

  • Received requisite approvals from shareholders of Southern California Bancorp and Bank of Santa Clarita, and requisite regulatory approvals, for acquisition of Bank of Santa Clarita, which will expand footprint into northern Los Angeles County and create commercial bank with approximately $2.2 billion in pro forma assets

  • Completed sale of three branches to align footprint to support a commercial banking strategy

  • Continued status as "well-capitalized," the highest regulatory capital category

"I am very pleased to report strong third quarter non-PPP loan growth, which increased $111 million, or 12%, from the second quarter of 2021, net of payoffs of $22 million," said David Rainer, Chairman, CEO and President of Southern California Bancorp and Bank of Southern California, N.A. "As of the end of the third quarter, our net organic year-to-date non-PPP loan growth was $224 million, or 27%, with much of this growth coming from the new branches we have opened in our expanded Los Angeles County footprint. We believe this strong loan growth is evidence of the traction we are gaining from the execution of our strategic repositioning of the Bank to a relationship-based, commercial banking model with branches in high growth areas.

"Deposits remained steady at $1.6 billion in the third quarter, even as we completed the sale of three branches with combined deposits of $82 million in September. Noninterest-bearing deposits of $760 million at September 30, 2021, represented 48.6% of total deposits and our cost of deposits decreased to 0.11% in the third quarter, down from 0.15% in the second quarter of 2021. Average deposits per branch grew to $130 million at September 30, 2021, up from $100 million at December 31, 2020, and on a pro forma basis, combined with Bank of Santa Clarita, are expected to be approximately $150 million per branch.

"In the third quarter we received approval for the acquisition of Bank of Santa Clarita from the shareholders of Southern California Bancorp and Bank of Santa Clarita, as well as regulatory approval of the transaction, which was closed on October 1, 2021. The integration is progressing smoothly, with both teams excited about the opportunities it presents, and we are very pleased to have former Bank of Santa Clarita Chairman Frank Di Tomaso join our Boards of Directors.

"Additionally, in the third quarter we established a Private Banking Group, with the appointment of Nicole Swain as President. Ms. Swain is well known and widely respected in the Southern California banking industry, and we are very pleased to have her join us."

Third Quarter Operating Results

Net Income

Net income for the third quarter of 2021 was $3.5 million or $0.25 per fully diluted share, compared with net income of $2.2 million or $0.23 per fully diluted share for the third quarter of 2020. The increase in net income from the prior year was primarily attributable to a $2.6 million increase in net interest income and a $963,000 increase in noninterest income. Noninterest expense increased to $12.7 million in the third quarter of 2021, compared with $9.0 million in the prior year, largely related to the Company’s recent strategic expansion into Los Angeles County. The Company took no loan loss provision in the third quarter of 2021, compared with a $2.0 million loan loss provision in the prior year.

Net income for the third quarter of 2021 was $3.5 million or $0.25 per fully diluted share, compared with net income of $2.4 million or $0.17 per fully diluted share in the second quarter of 2021. The increase in net income in the third quarter of 2021 was related to a $616,000 increase in net interest income in the third quarter of 2021 compared with the second quarter of 2021, and a decrease in noninterest expense in the third quarter of 2021 of $2.1 million compared with the second quarter of 2021, during which quarter the Company had nonrecurring compensation expenses of $3.1 million, related to a preexisting employment contract.

The Company’s income tax expense was $1.5 million for the third quarter of 2021, compared with a tax benefit of $51,000 in the second quarter of 2021, which was related to the acceleration and vesting of certain restricted share awards and the exercise of certain stock options. The Company’s income tax would have been approximately $740,000 higher in the second quarter without those benefits.

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2021 was $16.0 million, an increase of $2.6 million, or 19.6%, from the third quarter of 2020. The increase was primarily due to an increase in average earning assets related to the Company’s expansion into Los Angeles County and increased PPP fee income due to the accelerated pace of PPP loan forgiveness. Comparisons to the prior year also benefit from a reduction in interest expense of $872,000 resulting in cost of funding decreasing to 0.18% from 0.45% in the prior year.

Net interest margin for the third quarter of 2021 was 3.67%, compared with 3.60% in the same quarter of the prior year. Third quarter loan yields and yield on average earning assets were 5.29% and 3.84%, respectively, compared with 4.31% and 4.03%, respectively, in the prior year.

Net interest income for the third quarter of 2021 was $16.0 million, an increase of $616,000 from the second quarter of 2021. The increase was primarily due to organic loan growth and increased PPP net fee income of $4.5 million in the third quarter compared with $3.2 million in the previous quarter, related to the accelerated pace of PPP loan forgiveness and an additional day of interest income in the third quarter.

Interest expense in the third quarter of 2021 was $752,000, a decrease of $115,000 or 13.3% from interest expense of $867,000 in the second quarter of 2021. The decrease in the third quarter was primarily related to a reduction the cost of deposits to 0.11%, down from 0.15% in the second quarter.

Net interest margin for the third quarter of 2021 was 3.67%, compared to 3.72% in the second quarter of 2021. The decrease in net interest margin in the third quarter of 2021 was largely due to the decrease in the yield on average earning assets to 3.84%, from 3.92% in the prior quarter.

The yield on average loans in the third quarter of 2021, excluding PPP loans, was 4.60%, a decrease of 40 basis points from 5.00% in the prior quarter. The decrease in non-PPP loan yields was primarily due to nonrecurring income of $437,000 related to elevated prepayment penalties and the fair value accretion of an acquired loan in the second quarter of 2021. Average PPP loan yields increased to 7.88% in the third quarter, compared to 3.83% in the prior quarter. The increase in PPP loan yields was primarily due to the increase in fee income due to the accelerated pace of loan forgiveness.

Cost of funding for the third quarter of 2021 was 0.18%, down from 0.22% in the previous quarter. A detailed comparison of interest income, yields, costs, and net interest income is included in the table below:

Q3 2021

Q2 2021

Interest Income on:

Total Loans

$

16,373,790

5.29

%

$

15,956,930

4.61

%

Loans excl PPP

11,210,529

4.60

%

11,586,549

5.00

%

PPP Loans

5,163,261

7.88

%

4,370,381

3.83

%

Investments

245,527

2.79

%

262,758

3.05

%

Fed Funds & Int Earning

159,972

0.13

%

58,653

0.10

%

Total Interest Income

16,779,289

3.84

%

16,278,341

3.92

%

Int Exp on Deposits

451,181

0.11

%

566,579

0.15

%

Int Exp on Borrowings

300,705

5.86

%

300,692

4.93

%

Total Interest Expense

751,886

0.18

%

867,271

0.22

%

Net Interest Income

16,027,403

3.67

%

$

15,411,070

3.72

%

Noninterest Income

Total noninterest income for the third quarter of 2021 was $1.7 million, an increase of $963,000 compared with $723,000 in the third quarter of the prior year. The increase in the third quarter of 2021 was largely related to the gain on sale of $1.0 million for three branches the Company sold on September 24, 2021, for which there was no corresponding transaction in the third quarter of 2020.

Total noninterest income in the third quarter of 2021 decreased by $63,000 compared with the second quarter of 2021. As noted above, in the third quarter of 2021 the Company sold three branches for $1.0 million for which there was no corresponding transaction in the second quarter of 2021; however, in the second quarter of 2021 the Company recorded a gain on sale of an acquired loan of $920,000. In the third quarter of 2021 the Company recorded income on bank owned life insurance of $165,000, compared to $300,000 in the second quarter of 2021.

Balance Sheet

Assets

Total assets at September 30, 2021, were $1.8 billion, an increase of $205.1 million or 13.0% from December 31, 2020. The increase in total assets was primarily related to a $371.6 million increase in deposits, offset by a $179.3 million decrease in other borrowings, primarily PPPLF.

Loans

Total loans were $1.2 billion at September 30, 2021, compared with $1.3 billion at June 30, 2021, and $1.4 billion at September 30, 2020. The Company’s non-PPP loan portfolio had net organic growth of $110.8 million or 11.8% in the third quarter of 2021, after payoffs and paydowns of $21.6 million, and ended the quarter at $1.1 billion.

Total commercial and industrial loans decreased by $139.8 million during the third quarter of 2021, of which $165.2 million was a reduction in total PPP loans. Loans secured by real estate grew by $84.9 million in the third quarter of 2021 compared with the prior quarter.

From April 2020 to May 2021 the Company originated a total of $799.1 million in PPP loans; at September 30, 2021, the remaining PPP loans outstanding balance was $181.4 million.

Deposits

Total deposits at September 30, 2021, were $1.6 billion, an increase of $4.9 million from the end of the prior quarter. On September 24, 2021, the Company sold three branches with combined deposits of $82.0 million. Total deposits of $1.6 billion increased $428.3 million from the third quarter of 2020. Noninterest-bearing deposits at September 30, 2021 were $760.5 million, or 48.6% of total deposits, compared to $747.7 million, or 47.9% of total deposits, at June 30, 2021, and $503.9 million, or 44.3% of total deposits, at September 30, 2020.

Asset Quality

Total non-performing assets were $0.7 million or 0.04% of total assets at September 30, 2021, the same as the prior quarter.

During the third quarter of 2021, the Company recorded net recoveries of $75,000, compared with net charge-offs of $4,000 in third quarter of 2020 and $20,000 in net recoveries in the second quarter of 2021.

The Company recorded no loan loss provision in the first three quarters of 2021, after recording $4.6 million in provisions for the full year of 2020. The allowance for loan and lease losses (ALLL) was $10.4 million at the end of the third quarter of 2021. The Company continues to monitor macroeconomic variables related to COVID-19 and reasonably believes it is adequately provisioned for the current environment. Management will continue to monitor and manage the loan portfolio to minimize potential future losses.

Relevant reserve ratios compared to the prior and year-ago quarter are as follows:

Q3 2021

Q2 2021

Q3 2020

ALLL to Total Loans

0.84%

0.80%

0.76%

ALLL and Loan Fair Value Credit Marks (LFVCM) to Total Loans

1.00%

0.99%

1.14%

ALLL and LFVCM to Total Loans, excluding PPP Loans

1.18%

1.36%

1.88%

Liquidity and Capital

With 31.1% growth in total deposits year-to-date 2021, and a strong cash balance from the quick pace of forgiveness of PPP loans, the Bank has ample liquidity resources to meet its customers’ needs. Additionally, the Bank has borrowing capacity of $170 million from the FHLB, with no outstanding borrowings at September 30, 2021.

The significant production in PPP loans over the past 18 months was funded through a combination of increased DDA accounts, generally associated directly with the PPP Loans, borrowings under PPPLF, and other sources. At September 30, 2021, the Bank’s PPP loan portfolio was entirely funded by Bank deposits.

PPP loans are considered zero risk-weighted assets and, as such, have helped maintain the Bank’s leverage capital ratio and total risk-based capital ratio at 9.58% and 16.02%, respectively, for the quarter ended September 30, 2021.

ABOUT BANK OF SOUTHERN CALIFORNIA AND SOUTHERN CALIFORNIA BANCORP

Southern California Bancorp (OTC Pink: BCAL) is a registered bank holding company headquartered in San Diego, California. Bank of Southern California, N.A., a national banking association chartered under the laws of the United States and regulated by the Office of Comptroller of the Currency, is a wholly owned subsidiary of Southern California Bancorp. Established in 2001 and headquartered in San Diego, California, Bank of Southern California, N.A. offers a range of financial products and services to individuals, professionals, and small- to medium-sized businesses through its 12 branch offices serving San Diego, Orange, Los Angeles, and Ventura counties, as well as the Inland Empire. The Bank's solution-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with its clients. Additional information is available at www.banksocal.com.

Southern California Bancorp’s common stock is traded on the OTC Markets Group Inc. Pink Open Market under the symbol "BCAL." For more information, please visit banksocal.com or call (844) BNK-SOCAL.

FORWARD-LOOKING STATEMENTS

In addition to historical information, certain matters set forth herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to management’s beliefs, projections and assumptions concerning future results and events. Forward-looking statements include descriptions of management’s plans or objectives for future operations, products or services, and forecasts of Southern California Bancorp’s revenues, earnings, or other measures of economic performance. As well, forward-looking statements may relate to future outlook and anticipated events, such as Southern California Bancorp's plans and protocols with regard to managing potential impacts related to the ongoing COVID-19 pandemic. These forward-looking statements involve risks and uncertainties, based on the beliefs and assumptions of management and on the information available to management at the time that such forward-looking statements were made and can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words or phrases such as "aim," "can," "may," "could," "predict," "should," "will," "would," "believe," "anticipate," "estimate," "expect," "hope," "intend," "plan," "potential," "project," "will likely result," "continue," "seek," "shall," "possible," "projection," "optimistic," and "outlook," and variations of these words and similar expressions or the negative version of those words or phrases.

Forward-looking statements involve substantial risks and uncertainties, many of which are difficult to predict and are generally beyond our control. Many factors could cause actual results to differ materially from those contemplated by these forward-looking statements. Except to the extent required by applicable law or regulation, Southern California Bancorp does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to Southern California Bancorp's earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

Southern California Bancorp

Balance Sheets

(Unaudited)

Sept 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sept 30, 2020

ASSETS

Cash and due from banks

$

12,166,356

$

15,126,065

$

17,641,725

$

11,950,639

$

16,008,641

Fed funds & int-bearing balances

435,475,700

382,300,000

140,615,764

238,866,116

105,543,557

Total cash and cash equivalents

447,642,056

397,426,065

158,257,489

250,816,755

121,552,198

Debt securities (AFS)

24,905,267

21,214,779

24,248,794

24,702,467

24,767,969

FRB, FHLB and other equity stock

11,270,350

11,177,350

10,143,550

8,872,900

8,872,900

Construction & land development

34,438,305

29,559,914

30,459,337

31,375,236

43,101,171

1-4 Family Residential

108,632,444

93,871,005

106,082,307

103,367,391

107,724,352

Multifamily

142,220,706

92,938,965

108,601,017

111,815,776

113,159,342

Other commercial real estate

529,062,592

513,061,625

443,612,515

404,856,966

403,795,137

Commercial & industrial

413,758,869

553,516,111

723,443,758

577,608,374

689,687,091

Other consumer

4,528,805

4,148,740

4,181,084

4,857,563

6,010,280

Total loans

1,232,641,721

1,287,096,360

1,416,380,018

1,233,881,306

1,363,477,373

Allowance for loan losses

(10,364,693

)

(10,289,921

)

(10,270,115

)

(10,255,005

)

(10,295,855

)

Total loans and leases, net

1,222,277,028

1,276,806,439

1,406,109,903

1,223,626,301

1,353,181,518

Premises, equipment, and ROU, net

15,237,117

17,707,289

17,758,109

15,051,487

13,257,434

Other real estate owned

0

0

0

0

0

Goodwill and core deposit intangible

21,334,833

21,422,121

21,510,561

21,599,001

21,479,639

Bank owned life insurance

27,973,099

17,808,119

18,093,069

17,990,765

17,883,455

Accrued interest and other assets

13,546,434

14,518,617

17,047,915

16,388,640

14,291,215

Total Assets

$

1,784,186,184

$

1,778,080,779

$

1,673,169,390

$

1,579,048,316

$

1,575,286,328

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:

Noninterest-bearing demand

$

760,492,115

$

747,738,727

$

703,061,127

$

533,923,009

$

503,929,563

Interest bearing checking

136,851,252

129,392,533

119,366,773

83,566,875

96,527,122

Money market and savings

593,255,255

586,849,245

520,487,029

458,529,872

410,847,164

Time deposits

75,761,818

97,525,691

110,458,582

118,719,534

126,736,990

Total deposits

1,566,360,440

1,561,506,196

1,453,373,511

1,194,739,290

1,138,040,839

Other borrowings

20,377,355

20,345,918

30,314,482

199,648,070

297,357,238

Accrued interest and other liabilities

19,812,618

22,656,173

18,415,653

15,775,916

11,967,887

Total liabilities

1,606,550,413

1,604,508,287

1,502,103,646

1,410,163,276

1,447,365,964

Shareholders' Equity:

Common stock and APIC

148,384,701

147,727,489

147,690,044

146,895,943

103,932,450

Retained earnings

29,027,837

25,525,772

23,125,833

21,693,933

23,691,383

Accum. other comprehensive income

223,233

319,231

249,867

295,164

296,531

Total shareholders' equity

177,635,771

173,572,492

171,065,744

168,885,040

127,920,364

Total Liabilities and Shareholders' Equity

$

1,784,186,184

$

1,778,080,779

$

1,673,169,390

$

1,579,048,316

$

1,575,286,328

Southern California Bancorp

Income Statements - Quarterly

(Unaudited)

Sept 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sept 30, 2020

INTEREST INCOME

Loans, including fees

$

16,373,790

$

15,956,930

$

13,314,474

$

14,255,623

$

14,772,183

Debt securities and equity stock

245,527

262,758

252,345

222,737

226,211

Fed funds & int-bearing balances

159,972

58,653

34,605

41,094

26,303

Total interest income

16,779,289

16,278,341

13,601,424

14,519,454

15,024,697

INTEREST EXPENSE

Deposits

451,181

566,579

582,931

726,717

930,474

Other borrowings

300,705

300,692

379,181

648,616

693,487

Total interest expense

751,886

867,271

962,112

1,375,333

1,623,961

Net interest income

16,027,403

15,411,070

12,639,312

13,144,121

13,400,736

Provision for loan losses

0

0

0

0

2,000,000

Net interest income after provision

16,027,403

15,411,070

12,639,312

13,144,121

11,400,736

NONINTEREST INCOME

Service charges, fees and other income

503,839

481,151

448,919

421,803

364,797

Income on bank owned life insurance

164,979

299,068

102,304

107,310

108,682

Gains on loan sales

0

919,722

0

0

0

OREO, investment, other gains (losses)

1,017,273

54,362

(3,522

)

(92,856

)

250,009

Total noninterest income

1,686,091

1,754,303

547,701

436,257

723,488

NONINTEREST EXPENSE

Salaries and benefits

7,751,397

10,596,884

7,377,063

11,120,598

4,151,278

Occupancy and equipment

1,323,747

1,096,564

1,115,406

1,048,852

1,071,270

Strategic and other non-operating expense

614,695

838,062

664,957

1,610,824

Other expense

2,989,590

2,284,924

2,019,687

1,894,352

2,135,533

Total noninterest expense

12,679,429

14,816,434

11,177,113

16,433,451

8,968,905

Income before income tax expense

5,034,065

2,348,939

2,009,900

(2,853,073

)

3,155,319

Income tax expense (benefit)

1,532,000

(51,000

)

578,000

(855,623

)

920,000

Net Income (Loss)

$

3,502,065

$

2,399,939

$

1,431,900

($

1,997,450

)

$

2,235,319

Diluted earnings (loss) per share

$

0.25

$

0.17

$

0.10

($

0.21

)

$

0.23

Average shares outstanding

13,509,081

13,289,796

13,272,693

9,661,860

9,429,538

Operating profit (loss) (before non-operating items) 1

$

4,631,487

$

2,212,917

$

2,678,379

($

390,568

)

$

6,516,134

1 Op profit (before non-operating items) = Pre-tax, pre-provision earnings, before noninterest income gains (losses) and non-operating expense.

Southern California Bancorp

Income Statements - Year-to-Date

(Unaudited)

Sept 30, 2021

Sept 30, 2020

Sept 30, 2019

Sept 30, 2018

INTEREST INCOME

Loans, including fees

$

45,645,194

$

36,221,159

$

26,598,782

$

17,797,187

Investment securities

760,630

636,725

781,147

658,439

Fed funds & int-bearing balances

253,230

437,630

896,774

711,919

Total interest income

46,659,054

37,295,514

28,276,703

19,167,545

INTEREST EXPENSE

Deposits

1,600,691

3,153,416

4,650,872

2,278,661

Other borrowings

980,578

1,341,372

507,768

19,693

Total interest expense

2,581,269

4,494,788

5,158,640

2,298,354

Net interest income

44,077,785

32,800,726

23,118,063

16,869,191

Provision for loan losses

0

4,552,000

800,000

1,150,000

Net interest income after provision for loan losses

44,077,785

28,248,726

22,318,063

15,719,191

NONINTEREST INCOME

Service charges, fees and other income

1,433,909

1,033,109

1,091,900

1,004,992

Income on bank owned life insurance

566,351

253,470

178,029

170,248

Gains on loan sales

919,722

0

198,422

1,028,284

OREO, investment, other gains (losses)

1,068,113

573,872

165,021

73,631

Total noninterest income

3,988,095

1,860,451

1,633,372

2,277,155

NONINTEREST EXPENSE

Salaries and benefits

25,725,344

10,570,013

9,817,582

6,965,973

Occupancy and equipment

3,535,717

2,736,094

2,319,835

1,597,263

Strategic and other non-operating expense

2,117,714

2,248,404

191,898

1,646,924

Other expense

7,294,201

4,933,351

4,283,811

3,081,745

Total noninterest expense

38,672,976

20,487,862

16,613,126

13,291,905

Income before income tax expense

9,392,904

9,621,315

7,338,309

4,704,441

Income tax expense

2,059,000

2,901,377

2,201,000

1,451,000

Net Income

$

7,333,904

$

6,719,938

$

5,137,309

$

3,253,441

Diluted earnings per share

$

0.53

$

0.71

$

0.60

$

0.47

Average shares outstanding

13,357,190

9,420,362

8,410,105

6,654,150

Operating profit (before non-operating items) 1

$

9,522,783

$

15,847,847

$

7,966,764

$

6,399,450

1 Op profit (before non-operating items) = Pre-tax, pre-provision earnings, before non interest income gains (losses) and non-operating expense.

Southern California Bancorp

Quarterly and YTD Financial Highlights

(Unaudited)

Quarterly

9 Months YTD

2021

2021

2021

2020

2020

($$ in thousands except per share data)

3rd Qtr

2nd Qtr

1st Qtr

4th Qtr

3rd Qtr

2021

2020

EARNINGS

Net interest income

$

16,027

15,411

12,639

13,144

13,401

44,078

32,801

Provision for loan losses

$

0

0

0

0

2,000

0

4,552

Noninterest income

$

1,686

1,754

548

436

723

3,988

1,860

Noninterest expense

$

12,679

14,816

11,177

16,433

8,969

38,673

20,488

Income tax expense (benefit)

$

1,532

(51

)

578

(856

)

920

2,059

2,901

Net income (loss)

$

3,502

2,400

1,432

(1,997

)

2,235

7,334

6,720

Basic earnings (loss) per share

$

0.26

0.18

0.11

(0.21

)

0.24

0.55

0.71

Diluted earnings (loss) per share

$

0.25

0.17

0.10

(0.21

)

0.23

0.71

0.60

Average shares outstanding

13,509,081

13,289,796

13,272,693

9,661,860

9,429,538

13,357,190

9,420,362

Ending shares outstanding

13,509,081

13,509,081

13,278,005

13,267,380

9,455,065

13,509,081

9,455,065

PERFORMANCE RATIOS

Return on average assets

0.76

%

0.55

%

0.36

%

-0.50

%

0.57

%

0.57

%

0.72

%

Return on average common equity

7.92

%

5.54

%

3.41

%

-6.06

%

7.00

%

5.66

%

7.21

%

Yield on loans

5.29

%

4.61

%

4.08

%

4.36

%

4.31

%

4.65

%

4.61

%

Yield on earning assets

3.84

%

3.92

%

3.63

%

3.83

%

4.03

%

3.80

%

4.25

%

Cost of deposits

0.11

%

0.15

%

0.18

%

0.25

%

0.32

%

0.14

%

0.45

%

Cost of funding

0.18

%

0.22

%

0.28

%

0.38

%

0.45

%

0.23

%

0.55

%

Net interest margin

3.67

%

3.72

%

3.38

%

3.47

%

3.60

%

3.59

%

3.73

%

Efficiency ratio

71.6

%

86.3

%

84.8

%

121.0

%

63.5

%

80.5

%

59.1

%

CAPITAL

Tangible equity to tangible assets

8.87

%

8.66

%

9.05

%

9.46

%

6.85

%

8.87

%

6.85

%

Book value (BV) per common share

$

13.15

12.85

12.88

12.73

13.53

13.15

13.53

Tangible BV per common share

$

11.57

11.26

11.26

11.10

11.26

11.57

11.26

ASSET QUALITY

Net loan charge-offs (recoveries)

$

(75

)

(20

)

(15

)

41

4

(110

)

(380

)

Allowance for loan losses (ALLL)

$

10,365

10,290

10,270

10,255

10,296

10,365

10,296

ALLL to total loans

0.84

%

0.80

%

0.73

%

0.83

%

0.76

%

0.84

%

0.76

%

Loan fair value credit marks (LFVCM)

$

1,998

2,510

3,872

4,333

5,205

1,998

5,205

ALLL & LFVCM to total loans

1.00

%

0.99

%

1.00

%

1.18

%

1.14

%

1.00

%

1.14

%

ALLL & LFVCM to total loans (excl PPP)

1.18

%

1.36

%

1.57

%

1.76

%

1.88

%

1.88

%

1.88

%

Nonperforming loans

$

666

697

808

896

1,125

666

1,125

Other real estate owned

$

0

0

0

0

0

0

0

Nonperforming assets to total assets

0.04

%

0.04

%

0.05

%

0.06

%

0.07

%

0.04

%

0.07

%

END OF PERIOD BALANCES

Total loans

$

1,232,642

1,287,096

1,416,380

1,233,881

1,363,477

1,232,642

1,363,477

Total assets

$

1,784,186

1,778,081

1,673,169

1,579,048

1,575,286

1,784,186

1,575,286

Deposits

$

1,566,360

1,561,506

1,453,374

1,194,739

1,138,041

1,566,360

1,138,041

Loans to deposits

78.7

%

82.4

%

97.5

%

103.3

%

119.8

%

78.7

%

119.8

%

Shareholders' equity

$

177,636

173,572

171,066

168,885

127,920

177,636

127,920

Full-time equivalent employees

195

184

169

147

118

195

118

AVERAGE BALANCES (QTRLY) | | (YTD)

Total loans

$

1,226,853

1,387,131

1,321,964

1,297,794

1,358,291

1,311,634

1,046,427

Earning assets

$

1,734,397

1,663,735

1,518,715

1,503,951

1,477,910

1,639,677

1,170,342

Total assets (net of AFS valuation)

$

1,823,112

1,744,886

1,600,686

1,578,118

1,556,364

1,723,710

1,237,289

Deposits

$

1,608,407

1,529,016

1,313,485

1,162,979

1,142,686

1,484,716

939,071

Shareholders' equity

$

175,364

173,644

170,362

130,818

126,670

173,124

124,222

View source version on businesswire.com: https://www.businesswire.com/news/home/20211028005379/en/

Contacts

INVESTOR RELATIONS CONTACT
Kevin McCabe
Bank of Southern California
kmccabe@banksocal.com
818.637.7065

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