California BanCorp (BCAL) Q3 2025 earnings summary

Executive summary

• Completed an all-stock merger in July 2024, expanding the California footprint and increasing scale and market share in both Northern and Southern California.

• Net income for Q3 2025 was $15.7 million ($0.48 per diluted share), up from $14.1 million in Q2 2025 and reversing a net loss of $16.5 million in Q3 2024.

• Five-year asset CAGR of 21.1% and deposit CAGR of 24.9% as of September 30, 2025.

• Focused on small to middle-market business banking in high-growth California markets, supported by a seasoned management team with a track record of organic and M&A growth.

• Strong deposit growth of $147.4 million and loan originations of $158.4 million in Q3 2025, with loan balances stable due to paydowns and payoffs.

Financial highlights

• Net interest income for Q3 2025 was $42.5 million, up $5.6 million year-over-year; net interest margin was 4.52%.

• Noninterest income for Q3 2025 was $2.7 million, up $1.5 million year-over-year, with higher bank-owned life insurance income and equity investment gains.

• Noninterest expense for Q3 2025 was $23.4 million, down $14.3 million year-over-year due to absence of merger-related costs.

• Pre-tax, pre-provision income reached $21.8 million in Q3 2025, up from $19.4 million in Q2 2025 and up $21.4 million year-over-year.

• Total assets grew to $4.10 billion and total deposits reached $3.46 billion, up 4.4% from Q2 2025.

Outlook and guidance

• Emphasis on organic loan and deposit growth in core California markets, with continued focus on relationship-based commercial banking and prudent capital deployment.

• Management continues to monitor macroeconomic variables, including interest rates, inflation, and economic growth, and expects ongoing margin pressure and credit quality challenges.

• The company is nearing completion of balance sheet derisking, with reduced exposure to criticized loans and brokered deposits.