California BanCorp posted net income of $13.8 million, or $0.42 per diluted share, in the first quarter of 2026, compared with $16.4 million, or $0.50 per diluted share, in the fourth quarter of 2025 and $16.9 million, or $0.52 per diluted share, in the first quarter of 2025. The quarter featured a $381 thousand credit-loss reversal, down from a $4.4 million provision in the prior quarter, contributing to the decline in earnings.

Net interest income decreased to $42.1 million from $42.9 million in the prior quarter, driven by a $2.4 million drop in interest and dividend income. Net interest margin expanded to 4.47% from 4.44%, as a 14 basis-point reduction in funding costs outpaced a 10 basis-point yield decline on interest-earning assets.

Nonperforming assets rose to 0.97% of total assets from 0.40% at year-end, while allowances for credit losses and loan losses edged up to 1.21% and 1.14% of total loans held for investment, respectively. The company repurchased 409,915 common shares for $7.4 million at an average price of $18.08, declared a $0.10 per share dividend totaling $3.3 million, and reported tangible book value per share of $13.97, maintaining well-capitalized regulatory ratios.