Southern California Bancorp (Ticker: BCAL), the holding company for Bank of Southern California, N.A., experienced a substantial increase in its net income. According to the recent quarterly report for the period ending March 31, 2023, the company reported a net income of $8.22 million, a significant increase from the $1.44 million net income reported in the same period last year.
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The Q1 2023 consolidated financial statements showed steady growth in the company’s operations
With net interest income reaching $24.89 million, a remarkable increase from $17.79 million in Q1 2022. This boost can be attributed to various factors, including adjustments in interest rates and the successful management of the company’s loan portfolio.
In terms of assets, Southern California Bancorp reported a total of $2.29 billion as of March 31, 2023, an increase from the $2.28 billion reported as of December 31, 2022. This can be attributed to the growth in the company’s cash and cash equivalents from $86.76 million to $102.14 million and an expansion of its debt securities portfolio. The net loans held for investment also experienced a slight decrease from $1.88 billion to $1.89 billion.
Deposits experienced impressive growth
With total deposits increasing from $1.93 billion to $1.99 billion, primarily driven by the increase in noninterest-bearing demand deposits and interest-bearing NOW accounts. This growth in deposits reflects the bank’s ongoing efforts to expand its customer base and cater to the financial needs of individuals and businesses in Southern California.
One of the company’s noteworthy achievements in Q1 2023 is its ability to manage credit risks effectively
The provision for credit losses reached $202,000, down from $1.85 million in Q1 2022. The company’s allowance for credit losses also increased from $17.10 million to $22.39 million, indicating a stronger financial position and improved risk management capabilities.
The reports also showcase the bank’s focus on expanding its non-interest income streams, such as service charges on deposit accounts, interchange and ATM income, and gains on the sales of loans, among others. In Q1 2023, the company reported total non-interest income of $1.57 million, slightly lower than the $1.6 million reported in Q1 2022. However, this demonstrates a diversified approach to revenue generation, ensuring the company’s resilience in various market conditions.
Southern California Bancorp’s growth can also be attributed to its strategic acquisitions
Which have expanded its banking services across the region. This growth has come with an increased number of branch offices, better catering to the financial needs of individuals, professionals, and small- to-medium-sized businesses in Southern California. The company’s continued growth can also be seen in its total shareholders’ equity, which increased from $260.35 million to $267.54 million.
As an emerging growth company and a smaller reporting company, Southern California Bancorp’s financial success demonstrates its strong potential in the financial sector. It also highlights the company’s commitment to providing exceptional banking services to its customers and shareholders. Based on these financial results, investors can expect continued growth and progress for Southern California Bancorp in the coming quarters.
Income Statement
Financials in millions USD. Fiscal year is January – December. source
| Year | 2022 | 2021 | |
|---|---|---|---|
| 0 | Revenue | 86.01 | 67.73 |
| 1 | Revenue Growth (YoY) | 27.00% | – |
| 2 | Gross Profit | 86.01 | 67.73 |
| 3 | Selling, General & Admin | 51.43 | 46.83 |
| 4 | Other Operating Expenses | 12.6 | 6.71 |
| 5 | Operating Expenses | 64.03 | 53.54 |
| 6 | Operating Income | 21.98 | 14.19 |
| 7 | Pretax Income | 21.98 | 14.19 |
| 8 | Income Tax | 5.87 | 3.48 |
| 9 | Net Income | 16.11 | 10.71 |
| 10 | Net Income Growth | 50.46% | – |
| 11 | Shares Outstanding (Basic) | 18 | – |
| 12 | EPS (Basic) | 0.90 | 0.74 |
| 13 | EPS (Diluted) | 0.88 | 0.72 |
| 14 | EPS Growth | 22.22% | – |
| 15 | Free Cash Flow Per Share | 0.90 | – |
| 16 | Gross Margin | 100.00% | 100.00% |
| 17 | Operating Margin | 25.56% | 20.95% |
| 18 | Profit Margin | 18.73% | 15.81% |
| 19 | Free Cash Flow Margin | 18.81% | 26.43% |
| 20 | Effective Tax Rate | 26.70% | 24.51% |
| 21 | EBITDA | 23.98 | 15.91 |
| 22 | EBITDA Margin | 27.88% | 23.49% |
| 23 | Depreciation & Amortization | 2 | 1.72 |
| 24 | EBIT | 21.98 | 14.19 |
| 25 | EBIT Margin | 25.56% | 20.95% |
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