California BanCorp reports Q1 adjusted EPS 57c, consensus 54c

Reports Q1 revenue $19.42M, consensus $19.52M. “We delivered another quarter of strong financial performance while maintaining our conservative approach to new loan production and prudent balance sheet management, which resulted in our adjusted return on average assets remaining above 1% when our merger-related expenses are excluded,” said Steven Shelton, Chief Executive Officer of California BanCorp. “We saw positive trends in many key areas including good stability in our net interest margin, disciplined expense management excluding the merger-related expense we recorded in the quarter, and improvement in our asset quality as a result of successfully resolving problem loans with minimal loss incurred. We had a small decline in the size of our balance sheet in the first quarter, as our conservative approach to new loan production resulted in new loan originations being below the level of payoffs we had in the quarter, while we also saw the usual seasonal outflows of demand deposits that occur in the first quarter. These outflows were partially offset by our continued success in adding new commercial relationships that bring noninterest-bearing deposits to the bank.”