California BanCorp \ CA (BCAL)·Q4 2025 Earnings Summary

California BanCorp Beats on EPS and Revenue as Post-Merger Transformation Delivers

January 28, 2026 · by Fintool AI Agent

California BanCorp (NASDAQ: BCAL) reported Q4 2025 earnings that beat on both revenue and EPS, capping a transformational year following its 2024 merger. Net income of $16.4 million ($0.50 diluted EPS) exceeded the $0.39 consensus by 27%, while revenue of $45.9 million topped estimates by 3.1% . The stock rose 1.6% in after-hours trading to $18.73.

Did California BanCorp Beat Earnings?

Yes — a solid beat on both metrics.

The EPS beat was driven by two factors: (1) a $4.4 million reversal of provision for credit losses as asset quality improved , and (2) steady net interest income of $42.9 million despite margin compression .

Key Q4 2025 metrics:

What Changed From Last Quarter?

Credit continues to improve. The $4.4 million reversal of provision for credit losses (vs. just $15K reversal in Q3) was the main driver of the EPS beat . Special mention loans dropped $26M to $72.4M, and substandard loans fell $24M to $60.7M .

Margin compression offset by lower funding costs. Net interest margin contracted 8 bps to 4.44%, but the cost of deposits fell 16 bps to 1.43% as the bank continued paying off higher-cost money market and time deposits .

One-time items weighed on expenses. Noninterest expense rose $4.5M QoQ to $27.9M due to $1.7M in severance costs and $2.0M in litigation settlements . Excluding these, efficiency ratio would have been 52.7% vs reported 60.8%.

Loan growth resumed. Total loans increased $62M to $3.06B, with multifamily up $27M and other CRE up $60M . The bank transferred its $17.3M solar loan portfolio to held-for-sale, recognizing a $2.5M charge-off .

How Did the Full Year Transform?

2025 marked a complete turnaround from 2024's merger integration year.

CEO David Rainer summarized the year: "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. 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."

What Did Management Say About Growth?

Management struck an optimistic tone on organic growth and talent acquisition:

"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."

The bank added five experienced bankers to its Northern California team, including two veterans with deep community roots . Management positioned this as capitalizing on disruption from competitor M&A.

How Did the Stock React?

The stock was essentially flat during regular trading on January 27 (-0.16% to $18.43) ahead of the after-hours announcement. Following the earnings release, shares rose 1.6% to $18.73 in after-market trading.

2025 trading context:

• 52-week high: $20.47
• 52-week low: $11.87
• Current vs 50-day avg: -3.1% ($18.43 vs $19.02)
• Current vs 200-day avg: +10.5% ($18.43 vs $16.68)
• YTD 2025 return: +55% (from ~$12 to $18.43)

The stock has more than recovered from the 2024 merger-related volatility and trades at 0.96x tangible book value ($18.43 / $13.79 × equity/shares adjustment).

Capital Return and Shareholder Value

Management continued returning capital through buybacks and dividends:

Tangible book value per share grew to $13.79 from $11.71 at year-end 2024 (+17.8%) .

Asset Quality and Credit Outlook

Credit metrics continue to normalize post-merger:

Management noted: "The Company's management continues to monitor macroeconomic variables related to changes in interest rates and the concerns of an economic downturn, and believes it has appropriately provisioned for the current environment."

One watch item: 30-89 day delinquencies jumped to $14.7M from $3.2M in Q3, primarily due to an $8.0M multifamily loan and $5.8M CRE loan that became delinquent . However, the multifamily loan was repaid in full in January 2026, and the CRE loan was downgraded to substandard .

What's the Outlook?

Management did not provide explicit forward guidance but signaled confidence in organic growth:

Positives:

• Completed merger integration positions bank for growth
• Footprint spans premium California markets
• Talent additions in Northern California to drive loan origination
• $1.17B in available borrowing capacity provides ample liquidity
• "Well-capitalized" regulatory status maintained

Risks to monitor:

• Net interest margin pressure as loan yields decline faster than deposit costs
• California CRE and multifamily exposure in uncertain rate environment
• Elevated delinquencies, though recent resolution is encouraging

Key Takeaways

1. Beat and raise narrative: Q4 beat estimates handily, and FY 2025 net income was 12x higher than 2024 post-merger integration.

2. Credit normalization driving earnings: $8.8M credit provision reversal for the full year as credit quality metrics improved across the board.

3. Merger synergies realized: Efficiency ratio improved to 56% from 77% (adjusted), cost of deposits down 46 bps YoY.

4. Capital return accelerating: Buybacks, dividends, and TBV growth of 18% signal management confidence.

5. Growth investments underway: New banker hires in Northern California to capture market share from disrupted competitors.

---

Data sourced from California BanCorp 8-K filed January 28, 2026 and S&P Global.