California Bancorp Q2 profit rises, dividend to increase
BCAL•Key results
| Metric | Actual |
|---|---|
| Q2 EPS | $0.44 |
| Q2 Net Income | $14.30 million |
| Q2 Net Interest Income | $43.35 million |
| Q2 Net Interest Margin | 4.71% |
Nonperforming assets to total assets ratio fell to 0.44% from 0.97%.
Drivers of the quarter
- Higher loan yields - Net interest income rose due to higher loan yields and increased interest income from loans, including payoffs of nonaccrual loans.
- Credit quality improvement - Significant decrease in nonperforming loans and assets, mainly due to resolution and repayment of downgraded commercial real estate loans.
- Lower noninterest expense - Noninterest expense declined, mainly due to lower salaries and benefits and reduced loan-related expenses.
Analyst view and outlook
The company said competition remains strong in California banking markets.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell".
The average consensus recommendation for the banks peer group is "buy". Wall Street's median 12-month price target for California Bancorp is $23.00, about 9.4% above its July 24 closing price of $21.02. The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago.
