Southern California Bancorp (ticker: BCAL) has provided an update on its investment securities in a recent SEC report. The bank’s held-to-maturity and available-for-sale debt securities have shown an increase in their estimated fair value compared to the previous fiscal year. These securities include U.S. government and agency securities, mortgage-backed securities, Small Business Administration (SBA) securities, U.S. Treasury securities, and U.S. Agency securities, in addition to taxable and tax-exempt municipals.
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As of March 31, 2023, the estimated fair value of the held-to-maturity debt securities was $49.71 million, an increase compared to the estimated fair value of $47.91 million recorded on December 31, 2022.
This increase was mainly driven by tax-exempt bank-qualified municipals, which increased in value from $47.46 million to $49.246 million.
Similarly, the estimated fair value of available-for-sale debt securities increased from $112.58 million on December 31, 2022, to $124.44 million on March 31, 2023.
The growth in estimated fair value in available-for-sale debt securities was primarily due to rising fair values in mortgage-backed securities, collateralized mortgage obligations, and tax-exempt bank-qualified municipals.
The SEC report also highlights the contractual maturities of debt securities, mentioning that expected maturities may vary due to borrowers’ rights to call or prepay the obligations. As of March 31, 2023, held-to-maturity debt securities with a ten-year or longer maturity term had an estimated fair value of $41.43 million, while those in the available-for-sale category had an estimated fair value of $80.80 million.
In the first quarter of 2023, there were no gross realized gains or losses, and the proceeds from sales and calls of available-for-sale debt securities were minimal at $5 thousand.
The bank continues to evaluate the impact of new accounting guidelines on its financial statements, including ASU 2020-04, which provides optional expedients and exceptions for accounting practices relating to reference rate reform. The bank is also assessing ASU 2021-01, which relates to derivative instruments affected by reference rate reform, and ASU 2023-01, which concerns lease accounting for common control arrangements.
Overall, Southern California Bancorp’s recent SEC report demonstrates a positive trend in the estimated fair value of its held-to-maturity and available-for-sale debt securities. This growth is reflective of the bank’s ability to manage its investment portfolio and maintain the quality of its assets within an ever-changing economic environment.
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% |
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!