10-Q · May 8, 2026
California BanCorp reported Q1 2026 earnings, showcasing growth in revenue and EPS compared to prior quarters. Revenue stood at $44.221 million, up from $43 million in Q4 2025 and $43 million in Q1 2025. Although EPS…
Earnings analysis · 10-Q
BCAL earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
California BanCorp delivered modestly better second-quarter results, with diluted EPS of $0.44, revenue of $44.905 million and net interest margin of 4.71%, all improving sequentially; EPS and net interest income also…
Read full summary
California BanCorp delivered modestly better second-quarter results, with diluted EPS of $0.44, revenue of $44.905 million and net interest margin of 4.71%, all improving sequentially; EPS and net interest income also increased year over year. Loan growth and credit-quality indicators improved, but the quarter included a $714 thousand credit-loss provision and the balance sheet remains exposed to a 61.3% CRE loan concentration. Liquidity narrowed as cash funded securities purchases and loan growth, while unrealized securities losses increased materially. No quantitative earnings or revenue guidance was provided.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.44
- Segment
- Commercial banking: $44.905 million of total revenue, defined as net interest income of $43.354 million plus noninterest income of $1.551 million; the company operates as one reportable segment.
What stood out
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EPS improved sequentially and year over year
Second-quarter net income increased to $14.300 million from $13.791 million in Q1 2026 and $14.099 million in Q2 2025. Diluted EPS rose to $0.44 from $0.42 sequentially and $0.43 year over year.
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Net interest income continued to grow
Total revenue, measured as net interest income plus noninterest income, was $44.905 million, up from $44.221 million in Q1 2026 and $44.273 million in Q2 2025. Net interest income increased to $43.354 million from $42.084 million sequentially and $41.417 million year over year.
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Net interest margin expanded
Net interest margin expanded to 4.71% from 4.47% in Q1 2026 and 4.61% in Q2 2025. Management attributed the sequential improvement primarily to higher loan yields, resolution of certain nonaccrual loans and purchase-accounting accretion.
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Loan balances expanded
Loans held for investment increased $60.9 million to $3.095 billion from December 31, 2025, including commercial real estate and other loans up $86.5 million to $1.907 billion and commercial and industrial loans up $19.4 million to $625.2 million.
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Nonperforming loans and delinquencies fell
Credit quality improved in several measures: nonaccrual loans declined to $8.922 million from $16.086 million at year-end, special mention loans declined to $48.640 million from $72.407 million, and accruing loans 30–89 days past due declined to $4.941 million from $14.735 million.
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Liquidity resources remained substantial
Operating cash flow for the first six months was $23.352 million, compared with $20.405 million in the prior-year period. The company also maintained $1.14 billion of total available borrowing capacity and $264.0 million of cash and cash equivalents at June 30, 2026.
What to watch
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Credit provision turned negative
The second-quarter provision for credit losses was $714 thousand, compared with a $381 thousand reversal in Q1 2026 and a $634 thousand reversal in Q2 2025. The provision included a $1.050 million loan-loss provision, reflecting updated California economic forecasts, loan growth, portfolio mix and higher substandard accruing balances.
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High commercial real estate concentration
Commercial real estate concentration remained material: CRE loans were 61.3% of total loans and 449% of total risk-based capital at June 30, 2026. Nonperforming CRE loans under the regulatory definition were $5.1 million, and OREO totaled $8.613 million.
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Liquidity declined as securities and loans grew
Cash and cash equivalents declined $134.962 million to $264.951 million from December 31, 2025, while the total liquidity ratio fell to 13.0% from 16.9%. Investing activities used $129.755 million, primarily reflecting $93.780 million of available-for-sale securities purchases and $52.743 million of net loan funding.
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Rate sensitivity pressures securities equity
Unrealized losses on available-for-sale securities increased to $8.515 million pretax from $4.807 million at year-end, while accumulated other comprehensive loss increased to $5.281 million from $1.621 million. Management estimated that a 300-basis-point rate increase would raise after-tax securities losses to $51.1 million in its stress test.
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Large uninsured and reciprocal deposits
Deposits declined $11.475 million to $3.359 billion, and approximately 50% of total deposits exceeded FDIC insurance limits. Reciprocal deposits were $705.2 million, or 21.0% of total deposits, increasing wholesale-funding and non-core-funding dependence ratios above the 20% threshold, although both remained within internal limits.
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Downside macroeconomic scenario persists
The company reported no material changes to the risk factors in its 2025 Form 10-K, filed March 13, 2026. However, management's downside economic scenario assumed 2026 GDP growth of 1.5% and a peak unemployment rate of 7.3%, highlighting ongoing macroeconomic downside risk.
Management's outlook
No quantitative revenue or EPS guidance was provided in the 10-Q. Management stated that results for the three and six months ended June 30, 2026 are not necessarily indicative of the full year. The company intends to redeem $35.0 million of subordinated debt during the third quarter of 2026 and approved a $0.12 per-share dividend payable October 15, 2026.
Earlier filings 4
10-K · March 13, 2026
California BanCorp (BCAL) shows meaningful improvement in 2025 operating performance after the 2024 merger: consolidated assets of $4.03 billion, loans of $3.06 billion and deposits of $3.37 billion as of December 31,…
10-Q · November 7, 2025
California BanCorp reported a materially improved quarter: total revenue (net interest income plus noninterest) rose to $45,183 (Q3 2025) from $38,116 (Q3 2024), and GAAP diluted EPS swung to $0.48 from $(0.59) a year…
10-Q · August 8, 2025
California BanCorp reported Q2 2025 consolidated revenue of $44,273,000 and diluted EPS of $0.43, driven by a sharp increase in net interest income. Revenue and profitability were substantially higher versus Q2 2024,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.