Slides
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Investor Presentation June 30, 2025
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Forward-Looking Statements CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS In addition to historical information, this release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and other matters that are not historical facts. Examples of forward-looking statements include, among others, statements regarding expectations, plans or objectives for future operations, products or services, loan recoveries, projections, and expectations regarding the adequacy of reserves for credit losses, as well as forecasts relating to financial and operating results or other measures of economic performance. Forward-looking statements reflect management’s current view about future events and involve risks and uncertainties that may cause actual results to differ from those expressed in the forward-looking statement or historical results. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and often include the words or phrases such as “aim,” “can,” “may,” “could,” “predict,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “hope,” “intend,” “plan,” “potential,” “project,” “will likely result,” “continue,” “seek,” “shall,” “possible,” “projection,” “optimistic,” and “outlook,” and variations of these words and similar expressions. Factors that could cause or contribute to results differing from those in or implied in the forward-looking statements include but are not limited to the impact of bank failures or other adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks, changes in real estate markets and valuations; the impact on financial markets from geopolitical conflicts; inflation, interest rate, market and monetary fluctuations and general economic conditions, either nationally or locally in the areas in which the Company conducts business; increases in competitive pressures among financial institutions and businesses offering similar products and services; general credit risks related to lending, including changes in the value of real estate or other collateral, the financial condition of borrowers, the effectiveness of our underwriting practices and the risk of fraud; higher than anticipated defaults in the Company’s loan portfolio; changes in management’s estimate of the adequacy of the allowance for credit losses or the factors the Company uses to determine the allowance for credit losses; changes in demand for loans and other products and services offered by the Company; the costs and outcomes of litigation; legislative or regulatory changes or changes in accounting principles, policies or guidelines and other risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) and other documents the Company may file with the SEC from time to time. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and other documents the Company files with the SEC from time to time. Any forward-looking statement made in this release is based only on information currently available to management and speaks only as of the date on which it is made. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements or to conform such forward-looking statements to actual results or to changes in its opinions or expectations, except as required by law. 2
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Company Overview 3
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Investment Highlights Market and Footprint Management Balance Sheet Composition Growth Opportunities • California is the world’s 4th largest economy and the largest banking market in the U.S.1 • Bank’s footprint covers the best small to middle-market business banking markets in California (1.4 million small to medium-sized businesses in the counties we service)2 • Scarcity of community banks in the region offers extraordinary opportunity for experienced management team • Seasoned management team with a proven track record of organic and M&A growth • Merger between Southern California Bancorp and predecessor California BanCorp closed on July 31, 2024 and expanded footprint into Northern California; franchise offers complementary products and services to expanded client base • Scalable business model of trusted brands offers cost savings and greater efficiency • New C&I teams established in Irvine in 2022 and Los Angeles in 2024 • Acquisition of Bank of Santa Clarita in late 2021 expanded footprint into desirable banking market of Northern Los Angeles County • New branches opened in 2021 in high growth areas of West Los Angeles, Encino and Westlake Village • Attractive low-cost core deposit base: noninterest-bearing deposits were 36.8% of total deposits at June 30, 2025 • Total loans held for investment of $3.0 billion at June 30, 2025, compared with $3.1 billion at March 31, 2025 and $1.9 billion at June 30, 2024 • Diverse commercial loan portfolio • Bank’s capital ratios exceed minimums to be “well capitalized,” the highest regulatory capital category 4 1. California data published by the U.S. Bureau of Economic Analysis on December 20, 2024; world data published by The World Bank, as of June 13, 2024. 2. Employment Development Department, State of California; data as of third quarter 2024.
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California BanCorp BCAL Nasdaq Branch Footprint $533M Market Cap1 4 Bank Acquisitions2 1 MOE $4.0B Assets3 20.7% 5-Yr Asset CAGR4 $3.3B Deposits3 23.4% 5-Yr Deposit CAGR4 San Diego Headquarters 5 1. Market data as of July 15, 2025. 2. Over the past 10 years. 3. As of June 30, 2025. 4. Compound annual growth rate (CAGR) over five-year period ended June 30, 2025. At a Glance
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Attractive Market Position $3.9T California GDP1 4th Largest economy in the world behind Germany and ahead of Japan1 39MM 2023 Population2 1.7MM Small Businesses3 $1.6T Combined GDP1 16th Largest economy in the world, behind Spain and ahead of Indonesia1 23MM 2023 Population2 1.1MM Small Businesses3 BCAL’s Northern California Footprint California is the Largest Banking Market in the United States BCAL’s Southern California Footprint $721MM Combined GDP1 21st Largest economy in the world, behind Switzerland and ahead of Poland1 6MM 2023 Population2 >300K Small Businesses3 6 Median California Bank Assets ($MM) 1. California data from U.S. Bureau of Economic Analysis (2025); world data from International Monetary Fund (2024). 2. U.S. Census Bureau (July 2024). 3. Employment Development Department, State of California (2024). 4. Data from S&P Capital IQ $175 $252 $1,064 2000 2010 2024 Median California Bank Assets ($MM) 351 272 124 2000 2010 2024 Banks in California4
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High Growth Franchise $480 $537 $768 $1,345 $1,579 $2,260 $2,360 $4,032 $3,983 $3,954 2017 2018 2019 2020 2021 2022 2023 2024 1Q25 2Q25 Assets ($MM) Acquired Assets ($MM) (1) July 2018 Acquired Americas United Bank ($230MM Assets) May 2020 Acquired CalWest Bancorp ($311MM Assets) October 2021 Acquired Bank of Santa Clarita ($425MM Assets) November 2020 David Rainer joined BCAL July 2024 Closed merger of California BanCorp and Southern California Bancorp ($1.86B Assets) Since 2019, total assets have grown organically and through strategic M&A by $3.1 billion, or 376%, powered by a dedicated and accomplished team. 7 (1) Assets included prior years’ acquisitions
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Experienced Leadership Team Steven Shelton Chief Executive Officer Banking Experience: > 40 Years David I. Rainer Executive Chairman Banking Experience: > 40 Years Richard Hernandez President Banking Experience: > 25 Years Thomas Dolan Chief Financial Officer, Company Banking Experience: > 40 Years Michele Wirfel Chief Operating Officer Banking Experience: > 30 Years 8 Jean Carandang Chief Financial Officer, Bank Banking Experience: > 30 Years Manisha Merchant Chief Legal Officer Banking Experience: > 25 Years Peter Nutz Chief Credit Officer, Bank Banking Experience: > 20 Years
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Our Vision for a Premier Banking Franchise Strong Leadership • Experienced teams living and working in their respective California communities, and actively involved in local organizations • Reputation and credibility of leadership attracts top talent in the market • Bank Advisory Boards composed of local business and civic leaders Growth Strategy Business Banking Focus • Loan composition reflects diversity of California marketplace • High-touch customer service draws relationships from larger banks • A significant number of new business results from “warm leads” provided by referrals • Provide expertise in commercial and industrial, and commercial real estate lending to small and middle-market businesses • High-touch relationship management team offers responsive, personalized service not always available at larger banks • Continue recruiting “in-market” talent • Opportunistic M&A Strategic Commercial Offices • Commercial offices offer a full array of banking services, are easily accessible, with good visibility and efficient operations • Commercial offices with average deposits for all branches of $236.6 million per branch at June 30, 2025 ($3.31 billion in deposits / 14 branches) 9
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Financial Highlights 10
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Post 2024 Merger Our TBV and Capital Ratios Have Increased 11 Strategic Focus • Dedicated to our relationship-based commercial business banking model • Organic loan and deposit growth in footprint covering largest business banking markets in California • Prudent underwriting with adequate reserves • Maintaining strong liquidity position with multiple sources of readily available liquidity • Managing capital for long- term success • Committed to the creation of shareholder value Tangible Book Value & Bank Capital Ratios June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Tangible Common Equity 1 $416.3 million $398.3 million $377.8 million $362.5 million Tangible book value per common share 1 $12.82 $12.29 $11.71 $11.28 Tangible common equity/tangible assets 1 10.9% 10.3% 9.7% 8.6% Leverage ratio 12.1% 12.2% 11.1% 12.4% Common equity tier 1 ratio 13.2% 13.3% 12.4% 11.4% Tier 1 capital ratio 13.2% 13.3% 12.4% 11.4% Total capital ratio 14.3% 14.4% 13.5% 12.5% 1. Non-GAAP financial measure; a reconciliation to the comparable GAAP measurement is provided at the end of this slide presentation. Financial Highlights ($ in millions except per share data) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Net Income (Loss) $14.1 $16.9 $16.8 $(16.5) Diluted EPS $0.43 $0.52 $0.51 $(0.59) Pre-tax, Pre-provision Income (PTPP) 1 $19.4 $19.9 $19.4 $0.4 Return on Average Assets 1.45% 1.71% 1.60% (1.82)% Adjusted Return on Average Assets 1 1.45% 1.71% 1.64% 1.01% Return on Average Common Equity 10.50% 13.18% 13.21% (15.28)% Adjusted Return on Average Common Equity 1 10.50% 13.18% 13.57% 8.44% Net Interest Margin 4.61% 4.65% 4.61% 4.43% Efficiency Ratio 1 56.1% 55.6% 57.4% 98.9% Non-performing Assets/Total Assets 0.46% 0.68% 0.76% 0.68% Allowance for Credit Losses/Total Loans Held for Investment 1.46% 1.57% 1.71% 1.80%
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Balance Sheet 12 ($ in 000s) June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 July 31, 2024 Assets Cash and Cash Equivalents $430,137 $439,241 $388,162 $614,423 $493,088 Debt Securities 241,275 184,787 195,281 212,694 219,674 Loans Held for Sale 6,088 4,625 17,180 33,704 7,338 Loans Held for Investment 2,991,560 3,068,744 3,139,165 3,199,714 3,211,221 Allowance for Loan Losses (41,110) (45,839) (50,540) (53,552) (53,527) Net Loans 2,950,450 3,022,935 3,088,625 3,146,162 3,157,695 Goodwill and Other Intangibles 131,309 133,103 134,058 135,546 136,212 Other Assets 194,458 198,429 208,348 220,238 236,950 Total Assets $3,953,717 $3,983,090 $4,031,654 $4,362,767 $4,250,957 Liabilities Total Deposits $3,312,278 $3,342,503 $3,398,760 $3,740,915 $3,630,870 Subordinated Debentures 52,883 70,308 69,725 69,142 68,753 Other Liabilities 40,963 38,895 51,333 54,646 64,101 Total Liabilities 3,406,124 3,451,706 3,519,818 3,864,703 3,763,724 Shareholders' Equity Common Stock 444,365 442,934 442,469 441,684 440,724 Retained Earnings 106,960 92,861 76,008 59,236 52,259 Accumulated Other Comprehensive Loss, Net of Taxes (3,732) (4,411) (6,641) (2,856) (5,750) Total Shareholders' Equity 547,593 531,384 511,836 498,064 487,233 Total Liabilities & Shareholders' Equity $3,953,717 $3,983,090 $4,031,654 $4,362,767 $4,250,957
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2Q25, 1Q25 and 2Q24 Income Statements 13 Income Statement ($ in 000s) For the three months ended June 30, 2025 March 31, 2025 June 30, 2024 Interest Income Loans $ 49,080 $ 50,686 $ 29,057 Securities 1,751 1,524 1,229 Other interest income 4,955 4,615 1,563 Total Interest Income 55,786 56,825 31,859 Interest Expense Deposits 12,940 13,179 10,184 Borrowings 1,429 1,391 658 Total Interest Expense 14,369 14,570 10,842 Net Interest Income 41,417 42,255 21,007 (Reversal of) provision for credit losses (634) (3,776) 2,893 Net Interest Income after (reversal of) provision for credit losses 42,051 46,031 18,114 Non-interest Income Service charges and fees on deposit accounts 1,178 1,186 568 Gain on sale of loans - 577 - Bank owned life insurance 503 463 266 Servicing and related income (expense) on loans 102 142 (5) Other charges and fees 1,073 199 359 Total Non-interest Income 2,856 2,566 1,169 Non-interest Expense Salaries, wages and other employee benefits 15,293 15,864 8,776 Occupancy 2,094 2,152 1,445 Merger and related expenses - - 491 Other operating 7,446 6,904 9,604 Total Non-interest Expense 24,833 24,920 19,005 Net Income Before Income Taxes 20,074 23,677 278 Income tax expense 5,975 6,824 88 Net Income $ 14,099 $ 16,853 $ 190
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Net Interest Margin Yield on Earning Assets (for three months ended June 30, 2025) Cost of Funds (for three months ended June 30, 2025) Assets ($ in thousands) Avg. Balance Income Yield Total loans $2,992,299 $49,080 6.58% Taxable debt securities 164,558 1,751 4.27% Tax-exempt debt securities1 53,438 304 2.89% Deposits in other financial institutions 295,602 3,270 4.44% Fed fund sold/resale agreements 65,568 730 4.47% Restricted stock investments and other bank stock 31,672 651 8.24% Total interest-earning assets $3,603,137 $55,786 6.21% Total noninterest-earning assets 302,142 Total Assets $3,905,279 Liabilities and Shareholders' Equity ($ in thousands) Avg. Balance Expense Cost Interest-bearing NOW accounts $763,987 $3,666 1.92% Money market and savings accounts 1,149,286 7,724 2.70% Time deposits 165,049 1,550 3.77% Total interest-bearing deposits 2,078,322 12,940 2.50% Borrowings: Subordinated debt 67,159 1,429 8.53% Total borrowings 67,159 1,429 8.53% Total interest-bearing liabilities $2,145,481 $14,369 2.69% Noninterest-bearing liabilities: Demand deposits 1,179,791 Other liabilities 41,629 Shareholders' equity 538,378 Total Liabilities and Shareholders' Equity $3,905,279 Net Interest Income for the quarter ended ($ in millions) $21.0 $36.9 $44.5 $42.3 $41.4 3.94% 4.43% 4.61% 4.65% 4.61% 3.40% 3.60% 3.80% 4.00% 4.20% 4.40% 4.60% 4.80% $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 Net Interest Income Net Interest Margin Total cost of deposits in 2Q25 was 1.59% Total cost of funds in 2Q25 was 1.73% 1. Tax-exempt security yields are presented on a tax equivalent basis using a 21% tax rate. 14
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Low-Cost Core Deposits 34% 37% 37% 39% 37% 34% 29% 33% 34% 34% 6% 4% 4% 4% 4% 13% 18% 17% 18% 20% 5% 6% 4% Brokered Deposits now 0% 8% 6% 5% 5% 5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 Noninterest-bearing Demand Money Market & Savings Interest-bearing Checking ICS/R&T Deposits Brokered Time Deposits Time Deposits Deposit Mix at quarter ended 95.5% Core deposits1 | 36.8% Noninterest-bearing deposits to total deposits as of June 30, 2025 Cost of Deposits for the quarter ended 2.12% 2.09% 1.87% 1.59% 1.59% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 2Q24 3Q24 4Q24 1Q25 2Q25 Total Deposits at quarter ended ($MM) $1,936 $3,741 $3,399 $3,343 $3,312 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 2Q24 3Q24 4Q24 1Q25 2Q25 1. Core deposits calculated as total deposits less CDs > $250K, less brokered deposits < $250K and CDARS deposits <$250K. 2. Insured Cash Sweep (ICS) and Reich & Tang Deposit Solutions (R&T) interest-bearing products provide customers with FDIC insurance coverage at ICS or R&T network institutions. 15 2
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Significant Access to Liquidity & Funding Capacity 16 Access to ample on-Balance Sheet (BS) and off-BS liquidity (as of 6/30/25) • On-BS Cash = $430.1 million • Total Borrowing Capacity = $1.14 billion • Total Available Borrowing Capacity = $1.09 billion • Total Available Liquidity = $1.69 billion Source Funding Capacity In-Use Total Available Liquidity As of 6/30/2025 Cash 430.1$ -$ 430.1$ AFS Securities 188.2 18.3 169.9 FHLB 727.6 45.0 682.6 Fed DW 320.4 - 320.4 Correspondent Banks 90.5 - 90.5 Total 1,756.8$ 63.3$ 1,693.5$ ($ in m illions)
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Loan Portfolio Total Loans 1 ($MM), at the quarter ended $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2Q24 3Q24 4Q24 1Q25 2Q25 Yield on Loans, for the quarter ended 6.21% 6.79% 6.84% 6.61% 6.58% 4.50% 5.00% 5.50% 6.00% 6.50% 7.00% 7.50% 2Q24 3Q24 4Q24 1Q25 2Q25 Contractual Maturity Summary for the next 3 years as of June 30, 2025 ($ in millions) < 1 year 1-2 Years > 2-3 Years $ % of total Loans $ % of total Loans $ % of total Loans Construction & land development $124.8 4.2% $55.3 1.8% $ - 0.0% 1-4 family residential 23.5 0.8% 11.1 0.4% 9.9 0.3% Multifamily 35.0 1.2% 44.3 1.5% 29.9 1.0% Commercial real estate 164.3 5.5% 221.8 7.4% 202.1 6.7% Commercial & industrial 292.9 9.8% 74.7 2.5% 49.5 1.7% Others 0.7 0.0% - 0.0% 0.8 0.0% Total loans $641.2 21.5% $407.2 13.6% $292.2 9.7% Sponsor Finance $11.3 0.4% $ - 0.0% $22.3 0.7% CRE Owner-Occupied (OO) $55.0 1.8% $31.0 1.0% $36.7 1.2% CRE Non Owner-Occupied (NOO) $109.3 3.7% $190.8 6.4% $165.4 5.5% CRE Office and Medical/Dental Office $25.3 0.8% $42.3 1.4% $43.7 1.5% Loan Repricing Summary for the next 3 years as of June 30, 2025 ($ in millions) < 1 year 1-2 Years > 2-3 Years $ % of total Loans $ % of total Loans $ % of total Loans Prime $655.1 21.9% $25.8 0.9% $6.3 0.2% Other Indexed Rate Loans 200.1 6.6% 293.0 9.8% 140.1 4.7% Total Variable Rate Loans $855.2 28.5% $318.8 10.7% $146.4 4.9% Fixed Rate Loans 2 190.2 6.3% 270.9 9.0% 203.8 6.8% Total Loans $1,045.4 34.8% $589.7 19.7% $350.2 11.7% Multifamily $43.3 1.4% $48.9 1.6% $54.5 1.8% Sponsor Finance $42.8 1.4% - 0.0% - - CRE Owner-Occupied (OO) $134.7 4.5% $102.2 3.4% $92.0 3.1% CRE Non Owner-Occupied (NOO) $217.3 7.2% $347.9 11.6% $165.6 5.5% CRE Office and Medical/Dental Office $79.7 2.7% $127.9 4.3% $45.4 1.5% 17 1. Total loans include loans held for sale and loans held for investment. 2. Fixed rate loans are based on contractual maturity.
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Diverse Loan Portfolio Total Loan Portfolio1, as of June 30, 2025 Total CRE 3 by Location4, as of June 30, 2025 C&I 19.1% Multifamily 8.6% Construction & Land Dev 6.2% 1-4 SFR 5.2% Sponsor Finance 1.4% Other 0.8% CRE - Industrial 17.2% CRE - Retail 9.5% CRE - Office 9.1% CRE - Others 6.9% CRE - Hotel, 4.5% CRE - Special Purpose 4.0% CRE - Medical/Dental Office 3.7% CRE - Self Storage 3.0% CRE - Restaurant 1.4% CRE 59.3% Total Loans1 $3.00 billion Commercially Focused | Relationship Based California - Los Angeles 25% California - San Diego 13% California - Orange 6% California - Others 10% California - Riverside 5% California - Ventura 4% California - Bay Area 24% California - Sacramento 6% Out of State 7% 1. Total loans includes loans held for sale and loans held for investment. 2. Other loans includes loans secured by farmland and consumer loans. 3. CRE loans excludes farmland loans. CRE OO and CRE NOO represents 20.7% and 38.6%, respectively, of total loan portfolio. 4. Location by counties in California, except Bay area and out of state. Bay area includes Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma counties. 18 Total CRE Loans $1.78 billion 2 3
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19 Total CRE1 Distribution by LTV2, as of June 30, 2025 CRE NOO vs CRE OO by Property Type, as of June 30, 2025 < 50% 55% >50% to 55% 11% >55% to 60% 14% >60% to 65% 10% >65% to 70% 5% > 70% 5% ($ in millions) No. of Loans Balance 1,3 Average Loan Size Weighted Avg. LTV 2 CRE – Industrial 275 $516.8 $1.9 48% CRE – Office 137 $272.6 $2.0 51% CRE – Retail 169 $284.7 $1.7 47% CRE – Special Purpose 58 $119.8 $2.1 41% CRE – Med/Dental Office 107 $110.2 $1.0 50% CRE – Self Storage 14 $90.2 $6.4 46% CRE – Restaurant 32 $42.9 $1.3 45% CRE – Hotel 16 $169.5 $10.6 46% CRE – Other4 76 $170.1 $2.2 47% Total CRE 884 $1,776.8 $2.0 48% CRE - Industrial, 18.8% CRE - Industrial, 48.3% CRE - Office, 18.4% CRE - Office, 9.5% CRE - Special Purpose, 3.6% CRE - Special Purpose, 12.6% CRE - Retail, 20.9% CRE - Retail, 6.9% CRE - Self Storage, 7.8% CRE - Med/Dental Office, 3.9% CRE - Med/Dental Office, 10.5% CRE - Other, 9.1% CRE - Other, 10.7% CRE - Restaurant, 2.9% CRE - Restaurant, 1.5% CRE - Hotel, 14.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CRE NOO - $1.16 B CRE OO - $619.4 MM Low LTV Commercial Real Estate Loans 1. CRE loans excludes farmland loans. 2. Weighted average LTV is based on current loan balance as of June 30, 2025, and collateral value at origination or renewal. 3. Balance includes loans held for sale and loans held for investment as of June 30, 2025. 4. CRE – Other includes gas station, mixed use and retirement properties.
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20 CRE Office and Medical/Dental Office Loans CRE Office Distribution by LTV1, as of June 30, 2025 Loan Size ($ in millions) No. of Loans Balance 2 Average Loan Size Weighted Avg. LTV 1 < $0.5 44 $10.8 $0.2 41% >$0.5 - $2 60 $53.6 $0.9 45% >$2 - $5 19 $57.0 $3.0 52% >$5 - $10 7 $44.5 $6.4 60% >$10 - $20 5 $61.9 $12.4 48% > $20 2 $44.8 $22.4 58% CRE – Office 137 $272.6 $2.0 51% CRE Medical/Dental Office Distribution by LTV1, as of June 30, 2025 Loan Size ($ in millions) No. of Loans Balance 2 Average Loan Size Weighted Avg. LTV 1 < $0.5 44 $12.0 $0.3 47% >$0.5 - $2 48 $43.5 $0.9 50% >$2 - $5 12 $32.5 $2.7 57% >$5 - $10 3 $22.2 $7.4 41% CRE – Medical/Dental Office 107 $110.2 $1.0 50% CRE Office and Medical/Dental Office by Location 3, as of June 30, 2025 California - Los Angeles 26.2% California - San Diego 6.2% California - Orange 2.5% California - Others 6.3%California - Ventura 6.2% California - Bay Area 26.4% California - Sacramento 14.8% California - Santa Barbara 8.7% Out of State 2.7% 1. Weighted average LTV is based on current loan balance as of June 30, 2025, and collateral value at origination or renewal. 2. Balance includes loans held for sale and loans held for investment as of June 30, 2025. 3. Location by counties in California, except Bay area and out of state. Bay area includes Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma counties.
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21 Multifamily Loans Multifamily Loans Distribution by LTV1, as of June 30, 2025 Multifamily Loans by Location3, as of June 30, 2025 Loan Size ($ in millions) No. of Loans Balance 2 Average Loan Size Weighted Avg. LTV 1 < $0.5 22 $6.7 $0.3 33% >$0.5 - $2 35 $42.7 $1.2 46% >$2 - $5 27 $81.4 $3.0 56% >$5 - $10 10 $72.0 $7.2 59% >$10 - $20 4 $55.7 $13.9 61% Multifamily Loans 98 $258.5 $2.6 56% 1. Weighted average LTV is based on current loan balance as of June 30, 2025, and collateral value at origination or renewal. 2. Balance includes loans held for sale and loans held for investment as of June 30, 2025. 3. Location by counties in California, except Bay area and out of state. Bay area includes Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma counties. California - Los Angeles, 60.9% California - Others, 9.6% California - San Diego, 12.4% California - Bay Area, 8.5% Out of State, 8.6% At June 30, 2025: • Total multifamily loans were $258.5 million, or 8.6% of total loans, including loans held for sale • Unfunded loan commitments were $3.0 million, or 0.3 % of total unfunded loan commitments • 56% are fixed rate loans and 44% are variable rate loans • No past due multifamily loans and no nonperforming loans • An eight-unit multifamily apartment building, with a fair value of $4.1 million was included in other real estate owned (OREO) a nd was sold in the second quarter of 2025. The Company recognized an $862 thousand loss.
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Loans Held for Investment by Risk Category 1. Represents substandard accruing loans. 2. All nonaccrual loans are risk rated substandard. 22 Special Pass Mention Substandard 1 Doubtful Loss Nonaccrual 2 Total ($ in Thousands) C onstruction and Land Development 155,680$ 14,328$ 77$ -$ -$ 14,659$ 184,744$ Real Estate - Other: 1-4 Family Residential 137,157 - 2,698 - 139,855 Multifamily Residential 255,394 3,001 - - 258,395 C ommercial Real Estate and Other 1,718,624 40,757 16,854 1,705 1,777,940 C ommercial and Industrial 523,932 4,878 34,244 1,990 565,044 Sponsor Finance 31,516 2,300 8,976 - 42,792 C onsumer 22,537 - 253 - 22,790 Total loans held for investment 2,844,840$ 65,264$ 63,102$ -$ -$ 18,354$ 2,991,560$ ($ in Thousands) C onstruction and Land Development 191,370$ 13,660$ 1,748$ -$ -$ 14,659$ 221,437$ Real Estate - Other: 1-4 Family Residential 154,729 - 2,713 - 157,442 Multifamily Residential 234,883 3,013 - - 237,896 C ommercial Real Estate and Other 1,688,260 41,804 24,135 1,763 1,755,962 C ommercial and Industrial 554,623 10,972 34,655 5,033 605,283 Sponsor Finance 35,439 4,972 25,449 1,325 67,185 C onsumer 23,263 - 306 - 23,569 Total loans held for investment 2,882,567$ 74,421$ 89,006$ -$ -$ 22,780$ 3,068,774$ June 30, 2025 March 31, 2025
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23 Credit Profile Adequate Reserves ($000) 2Q24 3Q24 4Q24 1Q25 2Q25 Nonaccrual Loans 1-4 Family $ - $2,895 $2,895 $ - $ - CRE & Multifamily 4,696 9,432 8,915 1,763 1,705 Construction - 9,105 9,659 14,659 14,659 Consumer - - - - - Commercial - 4,002 4,917 6,358 1,990 Total Nonaccrual $4,696 $25,661 $26,386 $22,780 $18,354 Accruing Loans past due 90 days or more - 37 150 45 - Total Nonperforming Loans $4,696 $25,698 $26,536 $22,825 $18,354 Other Real Estate Owned - 4,083 4,083 4,083 - Total Nonperforming Assets $4,696 $29,781 $30,619 $26,908 $18,354 NPAs / Assets 0.20% 0.68% 0.76% 0.68% 0.46% 0.00% 0.20% 0.40% 0.60% 0.80% 2Q24 3Q24 4Q24 1Q25 2Q25 ALL/ Total Loans Held for Investment 1.27% 1.67% 1.61% 1.49% 1.37% 0.90% 1.10% 1.30% 1.50% 1.70% 1.90% 2Q24 3Q24 4Q24 1Q25 2Q25 At June 30, 2025: • Total non-performing assets (NPAs) decreased 32% from the prior quarter to $18.4 million and now represent 0.46% of total assets. • Nonaccrual loans included 6 purchased credit deteriorated (“PCD”) loans with a total net amortized cost of $3.6 million at June 30, 2025, in connection with the 2024 merger. • During the second quarter of 2025, two nonaccrual loans were paid off, resulting $528 thousand in net charge-offs, and no loans were downgraded. • OREO was sold in the second quarter of 2025 and a $862 thousand loss was recognized.
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Allowance for Credit Losses – Loans as of and for the Three Months Ended June 30, 2025 1.49%1 At March 31, 2025 1. ALL to total loans held for investment. ➢ During the second quarter of 2025, the reversal of provision for credit losses for loans held for investment was $663 thousand. The decrease was driven primarily by the decrease in the balance of the loans held for investment portfolio, changes composition of the portfolio, and changes in qualitative factors, partially offset by the net charge-offs and the changes in reasonable and supportable forecast, primarily related to the economic outlook for California. ➢ Total net charge-offs were $4.1 million in the second quarter of 2025, which consisted of $4.2 million of gross charge-offs and $181 thousand of gross recoveries. ➢ At June 30, 2025, allowance for credit losses (“ACL”) was $43.6 million, or 1.46% of total loans held for investment. ➢ At June 30, 2025, ACL was comprised of allowance for loan losses (ALL) of $41.1 million, or 1.37% of total loans held for investment, and reserve for unfunded loan commitments of $2.5 million. 24 1.37%1 At June 30, 2025
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25 Noninterest Expense and Total Revenue Noninterest Expense ($MM) for the quarter ended: Total Revenue2 ($MM) for the quarter ended: $18.5 $23.1 $25.5 $24.9 $24.8 $0.5 $14.6 $0.6 85.7% 98.9% 57.4% 55.6% 56.1% 83.5% 60.5% 56.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 2Q24 3Q24 4Q24 1Q25 2Q25 Noninterest expense Merger expense Efficiency ratio Adjusted efficiency ratio 1 $22.2 $38.1 $45.5 $44.8 $44.3 0 5 10 15 20 25 30 35 40 45 50 2Q24 3Q24 4Q24 1Q25 2Q25 1. Non-GAAP financial measure; a reconciliation to the comparable GAAP measurement is provided at the end of this slide presentation. 2. Total revenue includes net interest income and noninterest income.
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26 Net Income (Loss)3 ($MM) $0.2 ($16.5) $16.8 $16.9 $14.1 0.03% -1.82% 1.60% 1.71% 1.45% -2.00% -1.50% -1.00% -0.50% 0.00% 0.50% 1.00% 1.50% 2.00% -$20.0 -$10.0 $0.0 $10.0 $20.0 2Q24 3Q24 4Q24 1Q25 2Q25 Net income ROAA Income Metrics Tangible Book Value Per Share (TBVPS)1,2 $13.71 $11.28 $11.71 $12.29 $12.820.30% -20.21% 18.04% 17.75% 13.94% -30.00% -20.00% -10.00% 0.00% 10.00% 20.00% 30.00% $0.00 $5.00 $10.00 $15.00 2Q24 3Q24 4Q24 1Q25 2Q25 TBVPS ROATCE Pre-Tax Pre-Provision Income1,3 ($MM) $3.2 $0.4 $19.4 $19.9 $19.4 2Q24 3Q24 4Q24 1Q25 2Q25 Diluted Earnings (Loss) Per Share3 $0.01 ($0.59) $0.51 $0.52 $0.43 2Q24 3Q24 4Q24 1Q25 2Q25 1. Non-GAAP financial measure; a reconciliation to the comparable GAAP measurement is provided at the end of this slide presentation. 2. Reflects balance at quarter end. 3. Reflects balance for the quarter ended. 1
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27 Tangible Common Equity Ratio1,3 Strong Capital Base Tier 1 Ratio2,3 Total Risk-Based Capital Ratio2,3 Leverage Ratio2,3 11.3% 8.6% 9.7% 10.3% 10.9% 2Q24 3Q24 4Q24 1Q25 2Q25 13.3% 11.4% 12.4% 13.3% 13.2% 2Q24 3Q24 4Q24 1Q25 2Q25 14.3% 12.5% 13.5% 14.4% 14.3% 2Q24 3Q24 4Q24 1Q25 2Q25 12.2% 12.4% 11.1% 12.2% 12.1% 2Q24 3Q24 4Q24 1Q25 2Q25 1. Non-GAAP financial measure; a reconciliation to the comparable GAAP measurement is provided at the end of this slide presentation. 2. Tier 1 ratio, total risk-based capital ratio and leverage ratio are at the Bank level. 3. Ratios as of period end.
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Appendix 28
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29 Non-GAAP Reconciliation For the three months ended All dollars in thousands June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 Net Interest Income $21,007 $36,942 $44,541 $42,255 $41,417 Noninterest Income 1,169 1,174 1,004 2,566 2,856 Total Net Interest Income and Noninterest Income 22,176 38,116 45,545 44,821 44,273 (Deduct): Noninterest expense 19,005 37,680 26,125 24,920 24,833 Pre-Tax, Pre-Provision Net Income (non-GAAP) $3,171 $436 $19,420 $19,901 $19,440 Add: Merger and Related Expenses 491 14,605 643 - - Adjusted Pre-Tax, Pre-Provision Income (non-GAAP) $3,662 $15,041 $20,063 $19,901 $19,440 Average Assets $2,294,678 $3,593,157 $4,168,747 $3,999,509 3,905,279 PTPP Net Income / Avg. Assets (Annualized) (non -GAAP) 0.56% 0.05% 1.85% 2.02% 2.00% Pre-tax, pre-provision income and adjusted pre-tax, pre-provision income are non-U.S. GAAP financial measures derived from U.S. GAAP-based amounts. We calculate pre-tax, pre-provision income by excluding income tax and provision for credit losses from net income. We calculate adjusted pre-tax, pre- provision income by excluding merger and related expenses from pre-tax, pre-provision income (PTPP). Management believes that the exclusion of such items from these financial measures provides useful information to gain an understanding of the operating results of our core business. These non-U.S. GAAP financial measures are supplemental and are not substitutes for an analysis based on U.S. GAAP measures. As companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A calculation of the non-U.S. GAAP measure of pre-provision net income and adjusted pre-tax, pre-provision income is set forth below.
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30 Non-GAAP Reconciliation For the three months ended All dollars in thousands June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 Noninterest Expense $19,005 $37,680 $26,125 $24,920 $24,833 Deduct: Merger and Related Expenses 491 14,605 643 - - Adjusted Noninterest Expense (non-GAAP) $18,514 $23,075 $25,482 $24,920 $24,833 Net Interest Income 21,007 36,942 44,541 42,255 41,417 Plus: Total Noninterest Income 1,169 1,174 1,004 2,566 2,856 Total Revenue $22,176 $38,116 $45,545 $44,821 $44,273 Efficiency Ratio (non-GAAP) 85.7% 98.9% 57.36% 55.60% 56.09% Adjusted Efficiency Ratio (non-GAAP) 83.5% 60.5% 55.95% 55.60% 56.09% Efficiency ratio and adjusted efficiency ratio are non-U.S. GAAP financial measures derived from U.S. GAAP-based amounts. The efficiency ratio represents the ratio of noninterest expense to the sum of net interest income and total noninterest income. The adjusted efficiency ratio represents the ratio of noninterest expense less merger and related expenses to the sum of net interest income and total noninterest income. Management believes that the exclusion of such items from these financial measures provides useful information to gain an understanding of the operating results of our core business. These non-U.S. GAAP financial measures are supplemental and are not substitutes for an analysis based on U.S. GAAP measures. As companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A calculation of the non-U.S. GAAP measure of efficiency ratio and adjusted efficiency ratio is set forth below.
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31 Non-GAAP Reconciliation All dollars in thousands, except per share data June 30, 2024 September 30, 2024 Dec ember 31, 2024 Marc h 31, 2025 June 30, 2025 Total Stockholders' Equity $293,219 $498,064 $511,836 $531,384 $547,593 Less: Intangible Assets 38,868 135,546 134,058 133,103 131,309 Tangible Common Equity (non-GAAP) $254,351 $362,518 $377,778 $398,281 $416,284 Add: Accumulated Other Comprehensive Loss (“AOCL”) 6,487 2,856 6,641 4,411 3,732 Tangible Common Equity Without AO CL (non-GAAP) $260,838 $365,374 $384,419 $393,870 $412,552 Total Assets $2,293,693 $4,362,767 $4,031,654 $3,983,090 $3,953,717 Less: Intangible Assets 38,868 135,546 134,058 133,103 131,309 Tangible Assets (non-GAAP) $2,254,825 $4,227,221 $3,897,596 $3,849,987 $3,822,408 Tangible Common Equity Ratio (non-GAAP) 11.28% 8.58% 9.69% 10.34% 10.89% Basic Shares Outstanding 18,547,352 32,142,427 32,265,935 32,402,140 32,463,311 Book Value per Share $15.81 $15.50 $15.86 $16.40 $16.87 Less: Intangible Book Value per Share $2.10 $4.22 $4.15 $4.11 $4.05 Tangible Book Value per Share (non-GAAP) $13.71 $11.28 $11.71 $12.29 $12.82 Tangible common equity to tangible assets (the "tangible common equity ratio") and tangible book value per share are non-U.S. GAAP financial measures derived from U.S. GAAP-based amounts. We calculate the tangible common equity ratio by excluding the balance of intangible assets from common stockholders' equity and dividing by tangible assets. We calculate tangible assets by excluding intangible assets from total assets. We calculate tangible book value per share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which we calculate by dividing common stockholders’ equity by common shares outstanding. We believe that this information is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Accordingly, we believe that these non-U.S. GAAP financial measures provide information that is important to investors and that is useful in understanding our capital position and ratios. However, these non-U.S. GAAP financial measures are supplemental and are not a substitute for an analysis based on U.S. GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-U.S. GAAP measure of tangible common equity ratio to the U.S. GAAP measure of common equity ratio and tangible book value per share to the U.S. GAAP measure of book value per share are set forth below.
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32 Non-GAAP Reconciliation For the three months ended All dollars in thousands June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 Net Income (Loss) $190 $(16,464) $16,772 $16,853 $14,099 Add: After-tax Day1 Provision for Non-PCD loans and Unfunded Loan Commitments1 - 14,978 - - - Add: After-tax Merger and Related Expenses 1 412 10,576 453 - - Adjusted Net Income (non-GAAP) $602 $9,090 $17,225 $16,853 $14,099 Average Assets $2,294,678 $3,593,157 $4,168,747 $3,999,509 $3,905,279 Average Shareholders’ Equity 294,121 428,558 504,909 518,543 538,378 Less: Average Intangible Assets 38,900 104,409 135,064 133,567 132,600 Average tangible common equity (non-GAAP) $255,221 $324,149 $369,845 $384,976 $405,778 Return on Average Assets 0.03% (1.82)% 1.60% 1.71% 1.45% Adjusted Return on Average Assets (non -GAAP) 0.11% 1.01% 1.64% 1.71% 1.45% Return on Average Equity 0.26% (15.28)% 13.21% 13.18% 10.50% Adjusted Return on Average Equity (non -GAAP) 0.82% 8.44% 13.57% 13.18% 10.50% Return on Average Tangible Common Equity (non -GAAP) 0.30% (20.21)% 18.04% 17.75% 13.94% Adjusted Return on Average Tangible Common Equity (non -GAAP) 0.95% 11.16% 18.53% 17.75% 13.94% The following table presents a reconciliation of non-GAAP financial measures to GAAP measures for: (1) adjusted net income, (2) average tangible common equity, (3) adjusted return on average assets, (4) adjusted return on average equity, (5) return on average tangible common equity, and (6) adjusted return on average tangible common equity. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures reported by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures. 1. After-tax Day 1 provision for non-PCD loans, unfunded loan commitments and merger and related expenses are presented using a 29.56% tax rate.
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