California BanCorp Capital Ratios Exceed Minimums, 2025 Net Interest Margin at 4.44%
Net interest margin of 4.44%, compared with 4.52% in the prior quarter; average total loan yield of 6.31% compared with 6.50% in the prior quarter. Tangible book value per common share of $13.79 at December 31, 2025, up $0.40 from $13.39 at September 30, 2025. The Company's preliminary capital ratios at December 31, 2025 exceed the minimums required to be "well-capitalized," the highest regulatory capital category. "2025 was a transformational year for California BanCorp, with the successful completion and integration of our 2024 merger that extended our footprint over all the best markets in California," said David Rainer, Chairman and CEO. "During the last year we also restructured and derisked our balance sheet. We reduced high-risk loans, improving our credit profile, and terminated our dependence on high cost brokered deposits while growing core deposits, lowering our cost of funds. We are now very well positioned and remain focused on the organic growth of loans and deposits through our relationship-based business model in all our markets. Strong earnings throughout the year and prudent capital management allowed us to continue creating shareholder value through the repurchase of our stock and the implementation of a quarterly dividend for our shareholders. "The recent M&A activity has increased the scarcity of relationship-based commercial banks that offer a high-touch service model like ours to small and middle-market businesses. With the traction we are achieving after a transformative year, and a footprint covering the very best markets in the state, and arguably the country, we believe there is a very bright future for our franchise. As we reported earlier this week, we added five experienced bankers, including two veteran commercial bankers with deep roots in the community, to our Northern California team. We are well positioned for growth and to take advantage of any disruption in local commercial banking markets due to M&A, and we will continue to be opportunistic in adding high-level talent across all the markets we serve. Steven Shelton, our former CEO who retired in December, played a crucial role in helping us get to where we are today and we thank him for all the contributions he made to our success, and wish him all the best in his retirement."
