Southern California Bancorp’s Loans Serviced for Others Grows to $69.5 Million in Q1 2023

Southern California Bancorp (ticker BCAL), a fast-growing community bank that primarily serves small and medium-sized businesses, as well as their owners, professionals, and entrepreneurs in Southern California, has reported steady growth in loans serviced for others. According to SEC filings, loans serviced for others amounted to $69.5 million at the end of the first quarter of 2023, up from $59.4 million at the end of 2022. This includes Small Business Administration (SBA) loans serviced for others that have a servicing asset of $684 thousand and $514 thousand at the end of March 2023 and December 2022, respectively.

The continued growth in loans serviced for others showcases Southern California Bancorp’s commitment to fostering small and medium-sized businesses’ growth and development.

This aligns with the company’s broader mission to support economic growth within the Southern California region.

One of the factors contributing to the growth in loans serviced for others is the bank’s strategic focus on SBA loans.

SBA loans are designed to help small businesses gain access to financing and drive economic growth. During the first quarter of 2023, Southern California Bancorp sold $9.9 million-worth of SBA 7(a) loans resulting in total gains on sale of SBA loans of $797 thousand. By comparison, SBA 7(a) loans sold during the first quarter of 2022 totaled $547 thousand, resulting in total gains on sale of SBA loans of $49 thousand.

Southern California Bancorp’s strategic focus on SBA loans has been crucial in supporting businesses. Amid the economic uncertainties caused by rising interest rates, ongoing inflationary pressures, tightening credit conditions due to recent banking industry turmoil, and the growing threat of recession, keeping small businesses afloat is essential for economic growth. The bank’s SBA loans approach ensures that they can continue to support their clientele despite these economic challenges.

An essential aspect of the reported loans serviced for others is the servicing asset related to SBA loans.

The servicing asset is based on the estimated fair value of future cash flows that the bank anticipates collecting as servicing fees from serviced loans. Servicing fees range from 0.25% to 1.00% for the services provided during the loan lifecycle. The SBA loan servicing asset has grown from $514 thousand in December 2022 to $684 thousand in March 2023, representing a further opportunity for income generation.

Southern California Bancorp is also involved in other credit facilities and loan portfolio segments, including construction and land development, real estate, commercial and industrial, and consumer loans.

The increase in loans serviced for others showcases the bank’s diversified focus and ability to cater to various business needs. As the bank continues to grow and evolve, the rising numbers in loans serviced for others signals Southern California Bancorp’s continued commitment to fostering economic growth in Southern California.

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!