Southern California Bancorp Reports Strong Organic Loan and Deposit Growth for the Second Quarter Of 2021

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SAN DIEGO–()–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 second quarter of 2021.

Second Quarter 2021 Highlights

  • Total assets increased to $1.8 billion, up $104.9 million or 6.3% from March 31, 2021, and $199 million or 12.6% from December 31, 2020
  • Total deposits increased to $1.6 billion, up $108.1 million or 7.4% from March 31, 2021, and $366.8 million or 30.7% from December 31, 2020
  • Noninterest bearing demand deposits were 47.9% of total deposits at June 30, 2021
  • Total Non-paycheck protection program (PPP) loans increased to $940.1 million, up $36.9 million, or 4.1% from March 31, 2021, and $113.0 million or 13.7% from December 31, 2020
  • Forgiveness submitted and payoffs received for 61% and 57%, respectively, of the entire $799.1 million PPP portfolio, with a $346.6 million balance remaining at June 30, 2021
  • Net interest margin of 3.72% in the second quarter; excluding PPP loans, the net interest margin was 3.73%
  • Nonperforming assets to total assets of 0.04% at June 30, 2021
  • Announced 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
  • Announced sale of three branches to align footprint to support a commercial banking strategy
  • Continued status as well-capitalized, the highest regulatory capital category

On June 29, 2021, following the departure of Nathan Rogge, the Southern California Bancorp and Bank of Southern California Boards of Directors appointed David Rainer President and Chief Executive Officer of Southern California Bancorp and Bank of Southern California.

“I’m honored to have our Board’s confidence and excited to be leading the Company as we continue to execute on the strategic growth plan presented to investors during last year’s capital raise,” said David Rainer, Chairman, President and Chief Executive Officer of Southern California Bancorp and Bank of Southern California. “We have made significant progress on that plan, including the opening of three banking offices in West Los Angeles, Encino and Westlake Village, all of which are key locations for commercial banking. In the second quarter we also announced the acquisition of Bank of Santa Clarita, which has a commercial banking business model very complementary to ours and is in the attractive banking community of northern Los Angeles County; we have received regulatory approval and expect that transaction to close in the fourth quarter, pending shareholder approval. Additionally, we have arranged for the sale of three branches that are not in alignment with our commercial business banking focus and that transaction is expected to close in the third quarter. Our execution on all these initiatives places us in an excellent position for continued growth, especially given the recovering economy.

“I’m pleased to report the Bank achieved net organic non-PPP loan growth of $37 million in the second quarter, despite the headwinds of payoffs and paydowns of $70 million, and that loan credit quality remains pristine, with the ratio of nonperforming assets to total assets ending the quarter at 0.04%.

“Second quarter net income of $2.4 million was impacted by nonrecurring compensation expenses but was significantly improved from $1.4 million in the first quarter. Quarterly net interest income of $15.4 million, which benefitted from $3.2 million in fee income related to the accelerated forgiveness on PPP loans, was a major driver of the increase. Net income also benefitted from the $920,000 gain on sale of a nonaccrual loan.

“Our employees worked diligently through two rounds of PPP loan originations totaling nearly $800 million to provide timely economic relief to businesses in our local community during the pandemic. These loans were made to both current and new customers, and we have been focused, with much success, on converting those new customers to ongoing banking relationships. Of the total PPP loans originated, at the end of the second quarter we had submitted 61% for forgiveness and received payoffs for 57%, reducing the Bank’s PPP outstanding loan balance to $347 million at June 30, 2021. The acceleration of PPP loan forgiveness has increased cash on our balance sheet, which will be deployed to fund new loans, and over time make additions to our investment portfolio, with some cash reduction related to the planned sale of three Bank branches later this year.”

Second Quarter Operating Results

Net Income

Net income for the second quarter of 2021 was $2.4 million or $0.17 per fully diluted share, compared with net income of $2.6 million or $0.27 per fully diluted share for the second quarter of 2020. The decrease in net income from the prior year was largely due to a $9.0 million increase in total noninterest expenses, primarily related to the acquisition of CalWest and the Company’s recent strategic expansion into Los Angeles County, as well as $3.1 million in nonrecurring compensation expenses related to a preexisting employment contract. This increase in noninterest expenses was partially offset by a $4.0 million increase in net interest income, a reduction of $2.2 million in the provision for loan losses and an increase of $1.4 million in noninterest income.

Net income for the second quarter of 2021 was $2.4 million or $0.17 per fully diluted share, compared with net income of $1.4 million or $0.10 per fully diluted share in the first quarter of 2021. The increase in net income in the second quarter of 2021 was largely due to a $2.8 million increase in net interest income compared with the first quarter of 2021, and nonrecurring gains of $974,000, partially offset by increased noninterest expenses of $3.6 million.

The Company’s financial results for the second quarter of 2021 benefitted from the recording of tax benefits associated with 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 second quarter of 2021 was $15.4 million, an increase of $4.0 million or 35% from the second quarter of 2020. The increase was primarily due to an increase in average earning assets from the acquisition of CalWest, 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 $450,000 resulting in cost of funding decreasing to 0.22% from 0.46% in the prior year.

Net interest margin for the second quarter of 2021 was 3.72%, compared with 3.74% in the same quarter of the prior year. Second quarter loan yields and yield on average earning assets were 4.61% and 3.92%, respectively, compared with 4.55% and 4.17%, respectively, in the prior year. Excluding PPP loans, the net interest margin would have been 3.73% in the second quarter of 2021.

Net interest income for the second quarter of 2021 was $15.4 million, an increase of $2.8 million from first quarter of 2021. The increase was primarily due to organic loan growth; increased PPP net fee income of $3.2 million in the second quarter compared with $2.2 million in the previous quarter, related to the accelerated pace of PPP loan forgiveness; the accretion of fair value discount from a prior acquisition; and, an additional day of interest income in the second quarter.

Interest expense in the second quarter of 2021 was $867,000 a decrease of $95,000 or 9.9% from interest expense of $962,000 in the first quarter of 2021. The decrease was primarily related to a reduction in average borrowings associated with the paying-off of borrowings from the Federal Reserve Bank under the Paycheck Protection Program Liquidity Funding (PPPLF).

Net interest margin for the second quarter of 2021 was 3.72%, compared to 3.38% in the first quarter of 2021. The increase in net interest margin in the second quarter of 2021 was largely due to an increase in the yield on average earning assets to 3.92%, from 3.63% in the prior quarter.

The yield on average loans in the second quarter of 2021, excluding PPP loans, was 5.00%, an increase of 26 basis points from 4.74% in the prior quarter. Average PPP loan yields increased to 3.83% in the second quarter, compared to 2.90% 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. The increase 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.

Cost of funding for the second quarter of 2021 was 0.22%, down from 0.28% in the previous quarter. A detailed comparison of interest income, yields, costs, and net interest income is included in the table below:

Q2 2021

Q1 2021

Interest Income on:

Total Loans

$15,956,930

4.61%

$13,314,474

4.08%

Loans excl PPP

11,586,549

5.00%

9,954,156

4.74%

PPP Loans

4,370,381

3.83%

3,360,318

2.90%

Investments

262,758

3.05%

252,345

3.02%

Fed Funds & Int Earning

58,653

0.10%

34,605

0.09%

Total Interest Income

16,278,341

3.92%

13,601,424

3.63%

 

 

 

 

Int Exp on Deposits

566,579

0.15%

582,931

0.18%

Int Exp on Borrowings

300,692

4.93%

379,181

1.54%

Total Interest Expense

867,271

0.22%

962,112

0.28%

 

 

 

 

Net Interest Income

$15,411,070

3.72%

$12,639,312

3.38%

Noninterest Income

Total noninterest income for the second quarter of 2021 was $1.8 million, an increase of $1.4 million compared with $390,000 in the second quarter of the prior year. The increase in the second quarter of 2021 included a gain on sale of $920,000 for an acquired loan that had been on nonaccrual, for which there was no corresponding transaction in the second quarter of 2020, as well as a $221,000 increase in income on bank owned life insurance and a $172,000 increase in service charges, fees and other income.

Total noninterest income in the second quarter of 2021 increased by $1.2 million compared with the first quarter of 2021, primarily due to the gain on sale of an acquired loan noted above, and a $197,000 increase in income on bank owned life insurance.

Balance Sheet

Assets

Total assets at June 30, 2021, were $1.8 billion, an increase of $199 million or 12.6% from December 31, 2020. The increase in total assets was primarily related to a $366.8 million increase in deposits, offset by a $179.3 million decrease in other borrowings, primarily PPPLF.

Loans

Total loans were $1.3 billion at June 30, 2021, compared with $1.4 billion at March 31, 2021, and June 30, 2020. The Company’s non-PPP loan portfolio had net organic growth of $36.9 million or 4.1% in the second quarter of 2021, after payoffs and paydowns of $70 million, and ended the quarter at $940.1 million.

Total commercial and industrial loans decreased by $169.9 million during the second quarter of 2021, of which $166.2 million was a reduction in total PPP loans. Loans secured by real estate grew by $40.7 million in the second quarter of 2021 compared with the prior quarter.

From April 2020 to May 2021 the Company originated 5,084 PPP loans for a total of $799.1 million. At June 30, 2021, the Company had submitted 2,650 PPP loans totaling $488.3 million for forgiveness, of which 2,544 PPP loans totaling $452.1 million were paid off. Total remaining PPP loans outstanding at June 30, 2021, was $347.0 million.

Deposits

Total deposits at June 30, 2021, were $1.6 billion, an increase of $108.1 million from the end of the prior quarter and an increase of $405.1 million from the year-ago period. Noninterest-bearing deposits at June 30, 2021, were $747.7 million or 47.9% of total deposits, compared to $703.1 million or 48.4% of total deposits at March 31, 2021, and $524.0 million or 45.3% of total deposits at June 30, 2020.

Asset Quality

Total non-performing assets were $0.7 million or 0.04% of total assets at June 30, 2021, compared with $0.8 million or 0.05% of total assets at March 31, 2021.

During the second quarter of 2021 the Company recorded net recoveries of $20,000, compared with $374,000 in net recoveries in the second quarter of 2020 and $15,000 in net recoveries in the first quarter of 2021.

The Company recorded no loan loss provision in the first and second quarters of 2021, after recording $4.6 million in provisions for the full year of 2020, and the allowance for loan and lease losses (ALLL) remained at $10.3 million at the end of the second quarter of 2021. The Company continues to monitor macroeconomic variables related to COVID-19 and believes it is adequately provisioned for the current environment. Management will continue to monitor and manage the loan portfolio to minimize potential future losses.

As the initial onset of economic uncertainty became clearer, many customers who elected a payment deferral have been returned to paying status; a total of $183 million in loans have reinstated their normal loan payments. The remaining three loans currently on deferral total $2.9 million and include two health care loans and one real estate loan.

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

Q2 2021

Q1 2021

Q2 2020

ALLL to Total Loans

0.80%

0.73%

0.61%

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

0.99%

1.00%

0.99%

ALLL and LFVCM to Total Loans, excluding PPP Loans

1.36%

1.57%

1.62%

Liquidity and Capital

With 7.4% growth in total deposits in the second quarter, 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 $187 million from the FHLB, with no outstanding borrowings at June 30, 2021.

The significant growth in PPP loans over the past 18 months has been funded through a combination of increased DDA accounts, generally associated directly with the PPP Loans, borrowings under PPPLF, and other sources. At June 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 9.74% and 17.45%, respectively, for the quarter ended June 30, 2021.

ABOUT BANK OF SOUTHERN CALIFORNIA AND SOUTHERN CALIFORNIA BANCORP

A growing commercial bank, established in 2001, Bank of Southern California, N.A., with headquarters in San Diego, CA, offers a range of financial products to individuals, professionals, and small-to-medium sized businesses. The Bank’s solution-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with its clients. The Bank currently operates branches in San Diego County, Los Angeles County, Orange County, San Bernardino County and Riverside County.

Southern California Bancorp is a registered bank holding company formed for the purpose of acquiring control of the Bank. The Bank became a wholly owned subsidiary of the Company in a reorganization transaction that closed on May 15, 2020.

For more information, please visit banksocal.com or call (844) BNK-SOCAL.

FORWARD-LOOKING STATEMENTS

This news release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, and Southern California Bancorp (the “Company”) intends for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this news release. Factors that might cause such differences include, but are not limited to: the effects of the COVID-19 pandemic, or other similar outbreaks, including the effects of the steps being taken to address the pandemic and their impact on the Company’s markets, customers and employees; the ability of the Company to successfully execute its business plans and achieve its objectives, including consummating the sale of three branches and consummating the merger with Bank of Santa Clarita, and including achieving the expected revenue synergies and cost savings from the merger with Bank of Santa Clarita; changes in general economic and financial market conditions, either nationally or locally, in areas in which the Company conducts its operations; changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company’s operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies.

The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

Southern California Bancorp

Balance Sheets

(Unaudited)

 

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sept 30, 2020

Jun 30, 2020

ASSETS

 

 

 

 

 

Cash and due from banks

$15,126,065

$17,641,725

$11,950,639

$16,008,641

$20,893,528

Fed funds & int-bearing balances

382,300,000

140,615,764

238,866,116

105,543,557

83,029,504

Total cash and cash equivalents

397,426,065

158,257,489

250,816,755

121,552,198

103,923,032

 

 

 

 

 

 

Debt securities (AFS)

21,214,779

24,248,794

24,702,467

24,767,969

26,855,698

FRB, FHLB and other equity stock

11,177,350

10,143,550

8,872,900

8,872,900

8,899,450

 

 

 

 

 

 

Construction & land development

29,559,914

30,459,337

31,375,236

43,101,171

35,241,241

1-4 Family Residential

93,871,005

106,082,307

103,367,391

107,724,352

105,297,275

Multifamily

92,938,965

108,601,017

111,815,776

113,159,342

125,895,257

Other commercial real estate

513,061,625

443,612,515

404,856,966

403,795,137

403,110,978

Commercial & industrial

553,516,111

723,443,758

577,608,374

689,687,091

675,270,756

Other consumer

4,148,740

4,181,084

4,857,563

6,010,280

5,935,683

Total loans

1,287,096,360

1,416,380,018

1,233,881,306

1,363,477,373

1,350,751,190

Allowance for loan losses

(10,289,921)

(10,270,115)

(10,255,005)

(10,295,855)

(8,300,176)

Total loans and leases, net

1,276,806,439

1,406,109,903

1,223,626,301

1,353,181,518

1,342,451,014

 

 

 

 

 

 

Premises, equipment, and ROU, net

17,707,289

17,758,109

15,051,487

13,257,434

13,125,130

Other real estate owned

0

0

0

0

0

Goodwill and core deposit intangible

21,422,121

21,510,561

21,599,001

21,479,639

22,297,992

Bank owned life insurance

17,808,119

18,093,069

17,990,765

17,883,455

17,774,774

Accrued interest and other assets

14,518,617

17,047,915

16,388,640

14,291,215

10,629,800

 

 

 

 

 

 

Total Assets

$1,778,080,779

$1,673,169,390

$1,579,048,316

$1,575,286,328

$1,545,956,890

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Deposits:

 

 

 

 

 

Noninterest-bearing demand

$747,738,727

$703,061,127

$533,923,009

$503,929,563

$524,041,064

Interest bearing checking

129,392,533

119,366,773

83,566,875

96,527,122

89,429,765

Money market and savings

586,849,245

520,487,029

458,529,872

410,847,164

394,126,519

Time deposits

97,525,691

110,458,582

118,719,534

126,736,990

148,854,654

Total deposits

1,561,506,196

1,453,373,511

1,194,739,290

1,138,040,839

1,156,452,002

 

 

 

 

 

 

Other borrowings

20,345,918

30,314,482

199,648,070

297,357,238

251,086,895

Accrued interest and other liabilities

22,656,173

18,415,653

15,775,916

11,967,887

12,997,372

Total liabilities

1,604,508,287

1,502,103,646

1,410,163,276

1,447,365,964

1,420,536,269

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

Common stock and APIC

147,727,489

147,690,044

146,895,943

103,932,450

103,595,385

Retained earnings

25,525,772

23,125,833

21,693,933

23,691,383

21,456,064

Accum. other comprehensive income

319,231

249,867

295,164

296,531

369,172

Total shareholders’ equity

173,572,492

171,065,744

168,885,040

127,920,364

125,420,621

 

 

 

 

 

 

Total Liabilities and Shareholders’ Equity

$1,778,080,779

$1,673,169,390

$1,579,048,316

$1,575,286,328

$1,545,956,890

Southern California Bancorp

Income Statements – Quarterly

(Unaudited)

 

 

 

 

 

 

 

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sept 30, 2020

Jun 30, 2020

INTEREST INCOME

 

 

 

 

 

Loans, including fees

$

15,956,930

 

$

13,314,474

 

$

14,255,623

 

$

14,772,183

$

12,480,097

Debt securities and equity stock

 

262,758

 

 

252,345

 

 

222,737

 

 

226,211

 

195,036

Fed funds & int-bearing balances

 

58,653

 

 

34,605

 

 

41,094

 

 

26,303

 

57,300

Total interest income

 

16,278,341

 

 

13,601,424

 

 

14,519,454

 

 

15,024,697

 

12,732,433

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

Deposits

 

566,579

 

 

582,931

 

 

726,717

 

 

930,474

 

869,786

Other borrowings

 

300,692

 

 

379,181

 

 

648,616

 

 

693,487

 

447,830

Total interest expense

 

867,271

 

 

962,112

 

 

1,375,333

 

 

1,623,961

 

1,317,616

 

 

 

 

 

 

Net interest income

 

15,411,070

 

 

12,639,312

 

 

13,144,121

 

 

13,400,736

 

11,414,817

 

 

 

 

 

 

Provision for loan losses

 

0

 

 

0

 

 

0

 

 

2,000,000

 

2,252,000

 

 

 

 

 

 

Net interest income after provision

 

15,411,070

 

 

12,639,312

 

 

13,144,121

 

 

11,400,736

 

9,162,817

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

Service charges, fees and other income

 

481,151

 

 

448,919

 

 

421,803

 

 

364,797

 

309,359

Income on bank owned life insurance

 

299,068

 

 

102,304

 

 

107,310

 

 

108,682

 

78,125

Gains on loan sales

 

919,722

 

 

0

 

 

0

 

 

0

 

0

OREO, investment, other gains (losses)

 

54,362

 

 

(3,522

)

 

(92,856

)

 

250,009

 

2,149

Total noninterest income

 

1,754,303

 

 

547,701

 

 

436,257

 

 

723,488

 

389,633

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

Salaries and benefits

 

10,596,884

 

 

7,377,063

 

 

11,120,598

 

 

4,151,278

 

3,171,772

Occupancy and equipment

 

1,096,564

 

 

1,115,406

 

 

1,048,852

 

 

1,071,270

 

854,976

Strategic and other non-operating expense

 

838,062

 

 

664,957

 

 

2,369,649

 

 

1,610,824

 

356,742

Other expense

 

2,284,924

 

 

2,019,687

 

 

1,894,352

 

 

2,135,533

 

1,441,300

Total noninterest expense

 

14,816,434

 

 

11,177,113

 

 

16,433,451

 

 

8,968,905

 

5,824,790

 

 

 

 

 

 

Income before income tax expense

 

2,348,939

 

 

2,009,900

 

 

(2,853,073

)

 

3,155,319

 

3,727,660

 

 

 

 

 

 

Income tax expense (benefit)

 

(51,000

)

 

578,000

 

 

(855,623

)

 

920,000

 

1,154,377

 

 

 

 

 

 

Net Income (Loss)

$

2,399,939

 

$

1,431,900

 

$

(1,997,450

)

$

2,235,319

$

2,573,283

 

 

 

 

 

 

Diluted earnings (loss) per share

$

0.17

 

$

0.10

 

$

(0.21

)

$

0.23

$

0.27

Average shares outstanding

 

13,289,796

 

 

13,272,693

 

 

9,661,860

 

 

9,429,538

 

9,422,608

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

$

2,212,917

 

$

2,678,379

 

$

(390,568

)

$

6,516,134

$

6,334,253

 

 

 

 

 

 

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)

 

Jun 30, 2021

Jun 30, 2020

Jun 30, 2019

Jun 30, 2018

INTEREST INCOME

Loans, including fees

$29,271,404

$21,448,976

$17,481,355

$10,582,729

Investment securities

515,103

410,514

552,199

426,789

Fed funds & int-bearing balances

93,258

411,327

656,544

395,108

Total interest income

29,879,765

22,270,817

18,690,098

11,404,626

 

INTEREST EXPENSE

Deposits

1,149,510

2,222,942

3,045,959

1,252,063

Other borrowings

679,873

647,885

321,322

19,693

Total interest expense

1,829,383

2,870,827

3,367,281

1,271,756

 

Net interest income

28,050,382

19,399,990

15,322,817

10,132,870

 

Provision for loan losses

0

2,552,000

500,000

700,000

 

Net interest income after provision for loan losses

28,050,382

16,847,990

14,822,817

9,432,870

 

NONINTEREST INCOME

Service charges, fees and other income

930,070

668,312

744,033

619,656

Income on bank owned life insurance

401,372

144,788

113,053

113,370

Gains on loan sales

919,722

0

93,874

967,270

OREO, investment, other gains (losses)

50,840

323,863

(12,307)

250

Total noninterest income

2,302,004

1,136,963

938,653

1,700,546

 

NONINTEREST EXPENSE

Salaries and benefits

17,973,947

6,418,735

6,439,295

4,512,649

Occupancy and equipment

2,211,970

1,664,824

1,511,675

924,457

Strategic and other non-operating expense

1,503,019

637,580

0

414,773

Other expense

4,304,611

2,797,818

2,951,507

1,853,084

Total noninterest expense

25,993,547

11,518,957

10,902,477

7,704,963

 

Income before income tax expense

4,358,839

6,465,996

4,858,993

3,428,453

 

Income tax expense

527,000

1,981,377

1,438,000

1,050,000

 

Net Income

$3,831,839

$4,484,619

$3,420,993

$2,378,453

 

Diluted earnings per share

$0.28

$0.47

$0.40

$0.37

Average shares outstanding

13,281,244

9,415,774

8,409,897

6,136,312

Operating profit (before non-operating items) 1

$4,891,296

$9,331,713

$5,277,426

$3,575,706

 

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

Southern California Bancorp

Quarterly and YTD Financial Highlights

(Unaudited)

Quarterly

 

6 Months YTD

2021

2021

2020

2020

2020

 

 

 

($$ in thousands except per share data)

2nd Qtr

1st Qtr

4th Qtr

3rd Qtr

2nd Qtr

 

2021

2020

EARNINGS

 

 

 

Net interest income

$

15,411

12,639

13,144

13,401

11,415

 

28,050

19,400

Provision for loan losses

$

0

0

0

2,000

2,252

 

0

2,552

Noninterest income

$

1,754

548

436

723

390

 

2,302

1,137

Noninterest expense

$

14,816

11,177

16,433

8,969

5,825

 

25,994

11,519

Income tax expense (benefit)

$

(51)

578

(856)

920

1,154

 

527

1,981

Net income (loss)

$

2,400

1,432

(1,997)

2,235

2,573

 

3,832

4,485

 

 

 

Basic earnings (loss) per share

$

0.18

0.11

(0.21)

0.24

0.27

 

0.29

0.48

Diluted earnings (loss) per share

$

0.17

0.10

(0.21)

0.23

0.27

 

0.28

0.47

Average shares outstanding

13,289,796

13,272,693

9,661,860

9,429,538

9,422,608

 

13,281,244

9,415,774

Ending shares outstanding

13,509,081

13,278,005

13,267,380

9,455,065

9,424,565

 

13,509,081

9,424,565

 

 

 

PERFORMANCE RATIOS

 

 

 

Return on average assets

0.55%

0.36%

-0.50%

0.57%

0.80%

 

0.46%

0.84%

Return on average common equity

5.54%

3.41%

-6.06%

7.00%

8.33%

 

4.49%

7.31%

Yield on loans

4.61%

4.08%

4.36%

4.31%

4.55%

 

4.36%

4.84%

Yield on earning assets

3.92%

3.63%

3.83%

4.03%

4.17%

 

3.79%

4.40%

Cost of deposits

0.15%

0.18%

0.25%

0.32%

0.35%

 

0.16%

0.53%

Cost of funding

0.22%

0.28%

0.38%

0.45%

0.46%

 

0.25%

0.61%

Net interest margin

3.72%

3.38%

3.47%

3.60%

3.74%

 

3.55%

3.83%

Efficiency ratio

86.3%

84.8%

121.0%

63.5%

49.3%

 

85.6%

56.1%

 

 

 

CAPITAL

 

 

 

Tangible equity to tangible assets

8.66%

9.05%

9.46%

6.85%

6.77%

 

8.66%

6.77%

Book value (BV) per common share

$

12.85

12.88

12.73

13.53

13.31

 

12.85

13.31

Tangible BV per common share

$

11.26

11.26

11.10

11.26

10.94

 

11.26

10.94

 

 

 

ASSET QUALITY

 

 

 

Net loan charge-offs (recoveries)

$

(20)

(15)

41

4

(374)

 

(35)

(385)

Allowance for loan losses (ALLL)

$

10,290

10,270

10,255

10,296

8,300

 

10,290

8,300

ALLL to total loans

0.80%

0.73%

0.83%

0.76%

0.61%

 

0.80%

0.61%

Loan fair value credit marks (LFVCM)

$

2,510

3,872

4,333

5,205

5,076

 

2,510

5,076

ALLL & LFVCM to total loans

0.99%

1.00%

1.18%

1.14%

0.99%

 

0.99%

0.99%

ALLL & LFVCM to total loans (excl PPP)

1.36%

1.57%

1.76%

1.88%

1.62%

 

1.36%

1.62%

Nonperforming loans

$

697

808

896

1,125

1,734

 

697

1,734

Other real estate owned

$

0

0

0

0

0

 

0

0

Nonperforming assets to total assets

0.04%

0.05%

0.06%

0.07%

0.11%

 

0.04%

0.11%

 

 

 

END OF PERIOD BALANCES

 

 

 

Total loans

$

1,287,096

1,416,380

1,233,881

1,363,477

1,350,751

 

1,287,096

1,350,751

Total assets

$

1,778,081

1,673,169

1,579,048

1,575,286

1,545,957

 

1,778,081

1,545,957

Deposits

$

1,561,506

1,453,374

1,194,739

1,138,041

1,156,452

 

1,561,506

1,156,452

Loans to deposits

82.4%

97.5%

103.3%

119.8%

116.8%

 

82.4%

116.8%

Shareholders’ equity

$

173,572

171,066

168,885

127,920

125,421

 

173,572

125,421

Full-time equivalent employees

184

169

147

118

122

 

184

122

 

 

 

AVERAGE BALANCES (QTRLY) | | (YTD)

 

 

 

Total loans

$

1,387,131

1,321,964

1,297,794

1,358,291

1,100,180

 

1,354,728

888,502

Earning assets

$

1,663,735

1,518,715

1,503,951

1,477,910

1,225,376

 

1,591,579

1,014,590

Total assets (net of AFS valuation)

$

1,744,886

1,600,686

1,578,118

1,556,364

1,296,741

 

1,673,184

1,076,069

Deposits

$

1,529,016

1,313,485

1,162,979

1,142,686

983,294

 

1,421,846

839,818

Shareholders’ equity

$

173,644

170,362

130,818

126,670

123,899

 

172,003

122,972

 

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