California BanCorp Earnings Grew 12% to $5.6 Million or $0.89 per share in 2017
OREANDA-NEWS. California BanCorp (OTCQX:CALB) (formerly CABC), the Holding Company for California Bank of Commerce, a San Francisco Bay Area business bank, today reported that profitability continues to accelerate, fueled by strong loan and deposit growth, a healthy net interest margin and growing operating efficiencies. All financial results are unaudited and past periods have been adjusted to reflect the 5% stock dividend paid in August 2017.
Fourth quarter and annual earnings were reduced by $1.7 million, or $0.27 per share, due to the impact of an increase in the income tax expense for the fiscal year ended December 31, 2017, as the Bank revalued its deferred tax assets to align with the lowered U.S. corporate tax rate.
President and CEO, Terry A. Peterson commented, “We had another exceptional year with continued strong growth in earnings, loans and deposits. While our earnings for the quarter and entire year reflect the substantial one-time downward revaluation of our deferred tax asset, our pretax and after tax income for 2017 set another earnings record. Our balance sheet and earnings velocity continues to perform in line with our expectations. We are postured for continued balance sheet and earnings growth.”
Including the $1.7 million, or $0.27 per share charge from the non-operating revaluation of its deferred tax asset, earnings decreased to $5,000 in the fourth quarter of 2017, compared to $1.8 million in the fourth quarter of 2016. Year-to-date, earnings grew 12% to $5.6 million, or $0.89 per common share, from $5.0 million, or $0.84 per common share, in 2016. Without the one-time deferred tax asset adjustment of $1.7 million, earnings for 2017 would have accelerated by 45% to $7.3 million over the prior year.
“We posted solid profits in the fourth quarter of 2017 excluding the one-time deferred tax asset adjustment, while making investments in our franchise to expand into new markets in the San Francisco Bay Area,” said Stephen A. Cortese, Chairman of the Board. “During the year, we formed a Bank Holding Company, opened a loan production office in Walnut Creek, and hired several of the best bankers in the region to expand our leadership team.”